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

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United Bankshares, Inc. (UBSI) has reported a strong second quarter for 2024, with earnings of $96.5 million or $0.71 per diluted share. This represents a 11.2% increase from Q1 2024 and a 4.3% increase from Q2 2023. The company's performance is particularly impressive given the challenging banking environment.

Key highlights include:

Annualized return on average assets of 1.32%, up from 1.19% in Q1 2024
Net interest margin improvement to 3.50% from 3.44% in Q1 2024
Organic loan growth of $127.6 million, or 2% annualized
Decrease in non-performing loans by $9.1 million from Q1 2024

The bank's capital position remains strong, with a risk-based capital ratio of 15.8%, well above regulatory requirements. The pending acquisition of Piedmont Bancorp, Inc. is expected to further strengthen UBSI's market position, potentially boosting its assets to over $32 billion.

However, investors should note the slight decrease in noninterest income and the impact of higher interest expenses due to deposit rate repricing. The bank's effective tax rate of 16.4% for Q2 2024 was lower than previous quarters, primarily due to discrete tax benefits.

Overall, UBSI's performance demonstrates resilience and growth in a competitive banking landscape, positioning it well for future expansion and potential market share gains.

UBSI's Q2 2024 results reflect the broader trends in the banking industry, particularly the challenges of managing net interest margins in a rising rate environment. The bank's ability to grow its net interest income by 1% quarter-over-quarter, despite higher funding costs, is commendable.

The increase in yield on average net loans and loans held for sale to 6.14% demonstrates effective asset repricing. However, the rise in the cost of interest-bearing deposits to 3.18% highlights the ongoing pressure on funding costs across the industry.

UBSI's loan growth and improving asset quality metrics are positive signs. The decrease in non-performing loans and the maintained low net charge-off ratio of 0.02% indicate prudent risk management. The allowance for loan & lease losses at 1.24% of net loans appears adequate given the current economic conditions.

The announced acquisition of Piedmont Bancorp aligns with the industry trend of regional bank consolidation to achieve scale and efficiency. This move could enhance UBSI's competitive position in attractive markets, particularly in the Southeast.

One area of concern is the 14% decrease in mortgage banking activities, reflecting the broader slowdown in the housing market due to higher interest rates. Banks with significant mortgage operations may face headwinds in this area in the near term.

Overall, UBSI's performance suggests it is navigating the current banking environment effectively, maintaining profitability while positioning itself for future growth through strategic expansion.

07/25/2024 - 07:50 AM

WASHINGTON & CHARLESTON, W. Va.--(BUSINESS WIRE)-- United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today reported earnings for the second quarter of 2024 of $96.5 million, or $0.71 per diluted share. Second quarter of 2024 results produced annualized returns on average assets, average equity and average tangible equity, a non-GAAP measure, of 1.32%, 7.99% and 13.12%, respectively.

“UBSI continues to consistently deliver exceptional results,” stated Richard M. Adams, Jr., United’s Chief Executive Officer. “In the second quarter we saw increases in profitability, capital, loans, and deposits, as well as decreases in expenses and non-performing assets. We anticipate continued success in the second half of the year, and are excited about our recent acquisition announcement of Piedmont Bancorp, Inc. in Atlanta.”

United previously announced during the second quarter of 2024 that it entered into a definitive merger agreement with Piedmont Bancorp, Inc. (“Piedmont”). The combined organization will have more than $32 billion in assets and a network of over 240 locations across eight states and Washington, D.C., in some of the most desirable banking markets in the nation. The merger is expected to close late in the fourth quarter of 2024 or early in the first quarter of 2025, subject to satisfaction of customary closing conditions.

Earnings for the first quarter of 2024 were $86.8 million, or $0.64 per diluted share, and annualized returns on average assets, average equity and average tangible equity were 1.19%, 7.25% and 11.98%, respectively. Earnings for the second quarter of 2023 were $92.5 million, or $0.68 per diluted share, and annualized returns on average assets, average equity and average tangible equity were 1.26%, 7.96% and 13.47%, respectively.

Second quarter of 2024 compared to the first quarter of 2024

Net interest income for the second quarter of 2024 increased $3.2 million, or 1%, from the first quarter of 2024. 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 second quarter of 2024 also increased $3.2 million, or 1%, from the first quarter of 2024. The increase in net interest income and tax-equivalent net interest income was driven by a higher yield on average net loans and loans held for sale, organic loan growth and a decrease in average long-term borrowings partially offset by higher interest expense driven by the impact of deposit rate repricing. The net interest spread increased 3 basis points to 2.52% for the second quarter of 2024 driven by an increase in the yield on average earning assets of 9 basis points partially offset by an increase in the average cost of funds of 6 basis points. The yield on average net loans and loans held for sale increased 6 basis points to 6.14% for the second quarter of 2024. The first quarter of 2024 included a $593 thousand interest reversal due to a commercial & industrial loan relationship being placed on nonaccrual whereas the second quarter of 2024 included a $654 thousand interest recovery from a commercial real estate nonaccrual loan payoff. Average net loans and loans held for sale increased $127.6 million, or 2% on an annualized basis, from the first quarter of 2024. Average long-term borrowings decreased $209.8 million, or 14%, from the first quarter of 2024. The yield on average interest-bearing deposits increased 8 basis points to 3.18% for the second quarter of 2024. The net interest margin of 3.50% for the second quarter of 2024 was an increase of 6 basis points from the net interest margin of 3.44% for the first quarter of 2024.

The provision for credit losses was $5.8 million for the second quarter of 2024 as compared to $5.7 million for the first quarter of 2024.

Noninterest income for the second quarter of 2024 decreased $2.0 million, or 6%, from the first quarter of 2024. The decrease in noninterest income was primarily due to a decrease in income from mortgage banking activities of $1.4 million driven by lower mortgage loan sale volume and a lower margin. During the second quarter of 2024, United recognized a $6.9 million gain on the VISA share exchange, of which $4.6 million was realized through the sale of eligible shares and the remainder of which related to shares held at fair value at quarter-end and which will be eligible to be sold in the third quarter of 2024. Additionally, during the second quarter of 2024, United sold $102.7 million of available for sale (“AFS”) investment securities at a loss of $6.8 million.

Noninterest expense for the second quarter of 2024 decreased $6.0 million, or 4%, from the first quarter of 2024. The decrease in noninterest expense was primarily driven by decreases in employee benefits of $2.5 million, Federal Deposit Insurance Corporation (“FDIC”) insurance expense of $1.4 million as well as smaller decreases in other categories of noninterest expense. The decrease in employee benefits was primarily driven by lower Federal Insurance Contributions Act (“FICA”) and postretirement benefit costs. The decrease in FDIC insurance expense was primarily due to the inclusion in the first quarter of 2024 of an incremental $1.8 million of expense related to the FDIC special assessment. Other noninterest expense was $32.8 million for the second quarter of 2024 compared to $33.5 million for the first quarter of 2024. The decrease in other noninterest expense was driven by lower amounts of certain general operating expenses partially offset by $1.3 million in merger-related expenses related to the Piedmont acquisition.

For the second quarter of 2024, income tax expense was $18.9 million as compared to $21.4 million for the first quarter of 2024. The decrease of $2.5 million was driven by the impact of discrete tax benefits recognized in the second quarter of 2024 partially offset by higher earnings. United’s effective tax rate was 16.4% and 19.8% for the second quarter of 2024 and first quarter of 2024, respectively.

Second quarter of 2024 compared to the second quarter of 2023

Earnings for the second quarter of 2024 were $96.5 million, or $0.71 per diluted share, as compared to earnings of $92.5 million, or $0.68 per diluted share, for the second quarter of 2023.

Net interest income for the second quarter of 2024 of $225.7 million slightly decreased by $1.7 million, or less than 1%, from the second quarter of 2023. Tax-equivalent net interest income for the second quarter of 2024 of $226.6 million slightly decreased by $2.0 million, or less than 1%, from the second quarter of 2023. The slight 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 and a decrease in acquired loan accretion income. The decrease was largely offset by the impact of rising market interest rates on earning assets, organic loan growth and a decrease in average long-term borrowings. The yield on average interest-bearing deposits increased 81 basis points from the second quarter of 2023. Average interest-bearing deposits increased $1.2 billion from the second quarter of 2023. Acquired loan accretion income for the second quarter of 2024 decreased $671 thousand from the second quarter of 2023. The yield on average earning assets increased 46 basis points from the second quarter of 2023 to 5.79% driven by an increase in the yield on average net loans and loans held for sale of 36 basis points. Average net loans and loans held for sale increased $912.0 million from the second quarter of 2023. Average long-term borrowings decreased $1.0 billion from the second quarter of 2023. The net interest margin for the second quarter of 2024 and 2023 was 3.50% and 3.51%, respectively.

The provision for credit losses was $5.8 million for the second quarter of 2024 as compared to $11.4 million for the second quarter of 2023.

Noninterest income for the second quarter of 2024 was $30.2 million, which was a decrease of $5.0 million, or 14%, from the second quarter of 2023. Mortgage loan servicing income decreased $9.1 million driven by an $8.1 million gain on the sale of mortgage servicing rights (“MSRs”) in the second quarter of 2023. Income from mortgage banking activities decreased $4.0 million from the second quarter of 2023 mainly due to lower mortgage loan origination and sale volume and a lower quarter-end valuation of mortgage derivatives. Net losses on investment securities were $218 thousand for the second quarter of 2024 which included a $6.9 million gain on the VISA share exchange partially offset by a $6.8 million loss on the sale of AFS investment securities. Net losses on investment securities for the second quarter of 2023 were $7.3 million driven by a $7.2 million loss on the sale of AFS investment securities. Fees from brokerage services increased $1.0 million from the second quarter of 2023 primarily due to higher volume.

Noninterest expense for the second quarter of 2024 was flat from the second quarter of 2023, decreasing $514 thousand, or less than 1%. Several categories of noninterest expense decreased which were largely offset by increases in other categories, none of which were significant. Within other noninterest expense, lower amounts of certain general operating expenses were partially offset by $1.3 million in merger-related expenses and a $1.0 million increase in tax credit amortization.

For the second quarter of 2024, income tax expense was $18.9 million as compared to $23.5 million for the second quarter of 2023. The decrease of $4.6 million was driven by the impact of discrete tax benefits recognized in the second quarter of 2024. United’s effective tax rate was 16.4% and 20.2% for the second quarter of 2024 and second quarter of 2023, respectively.

First half of 2024 compared to the first half of 2023

Earnings for the first six months of 2024 were $183.3 million, or $1.35 per diluted share, as compared to earnings of $190.8 million, or $1.41 per diluted share, for the first six months of 2023.

Net interest income for the first half of 2024 decreased $13.6 million, or 3%, from the first half of 2023. Tax-equivalent net interest income for the first half of 2024 decreased $14.1 million, or 3%, from the first half 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 and a decrease in acquired loan accretion income. These decreases were 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 yield on average interest-bearing deposits increased 104 basis points from the first half of 2023. Average interest-bearing deposits increased $1.3 billion from the first half of 2023. Acquired loan accretion income for the first half of 2024 of $4.9 million was a decrease of $1.3 million from the first half of 2023. The yield on average earning assets increased 53 basis points from the first half of 2023 to 5.74% driven by an increase in the yield on average net loans and loans held for sale of 44 basis points. Average net loans and loans held for sale increased $856.2 million from the first half of 2023. Average long-term borrowings decreased $967.1 million from the first half of 2023. The net interest margin for the first half of 2024 and 2023 was 3.47% and 3.57%, respectively.

The provision for credit losses was $11.5 million for the first six months 2024 as compared to $18.3 million for the first six months of 2023.

Noninterest income for the first six months of 2024 was $62.4 million, which was a decrease of $5.5 million, or 8%, from the first six months of 2023. Mortgage loan servicing income decreased $10.5 million from the first half of 2023 driven by the aforementioned sale of MSRs. Income from mortgage banking activities decreased $5.1 million from the first half of 2023 mainly due to lower mortgage loan origination and sale volume and a lower quarter-end valuation of mortgage derivatives and mortgage loans held for sale. Net losses on investment securities were $317 thousand for the first half of 2024 which included a $6.9 million gain on the VISA share exchange partially offset by a $6.8 million loss on the sale of AFS investment securities. Net losses on investment securities for the first six months of 2023 were $7.7 million driven by a $7.2 million loss on the sale of AFS investment securities. Fees from brokerage services increased $2.1 million from the first half of 2023 primarily due to higher volume.

Noninterest expense for the first six months of 2024 was $275.5 million, an increase of $2.8 million, or 1%, from the first six months of 2023 driven by increases in employee compensation of $3.9 million, other noninterest expense of $2.9 million and FDIC insurance expense of $2.4 million partially offset by decreases in the expense for the reserve for unfunded loan commitments of $4.5 million and mortgage loan servicing expense of $1.6 million. The increase in employee compensation was driven by higher employee incentives, base salaries and employee severance associated with the previously announced mortgage delivery channel consolidation. The increase in other noninterest expense was primarily driven by a $2.0 million increase in tax credit amortization, $1.3 million in merger-related expenses incurred in the second quarter of 2024 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 driven by a decrease in the outstanding balance of loan commitments. The decrease in mortgage loan servicing expense was driven by the sale of MSRs.

For the first six months of 2024, income tax expense was $40.3 million as compared to $47.9 million for the first six months of 2023 primarily due to the impact of discrete tax benefits recognized in the second quarter of 2024 and lower earnings. United’s effective tax rate was 18.0% for the first six months of 2024 and 20.1% for the first six months of 2023.

Credit Quality

United’s asset quality continues to be sound. At June 30, 2024, non-performing loans were $65.3 million, or 0.30% of loans & leases, net of unearned income. Total non-performing assets were $67.5 million, including other real estate owned (“OREO”) of $2.2 million, or 0.23% of total assets at June 30, 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. As previously disclosed in the first quarter of 2024, the increase in non-performing loans and non-performing assets from year-end was driven by one commercial & industrial loan relationship. Non-performing loans decreased $9.1 million from March 31, 2024 primarily due to a partial paydown of the aforementioned commercial & industrial loan relationship.

As of June 30, 2024, the allowance for loan & lease losses was $267.4 million, or 1.24% 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 $1.3 million for the second quarter of 2024 compared to $1.2 million for the second quarter of 2023. Annualized net charge-offs as a percentage of average loans & leases, net of unearned income were 0.02% for both the second quarter of 2024 and 2023. Net charge-offs were $3.3 million for the first half of 2024 compared to $2.4 million for the first half of 2023. Annualized net charge-offs as a percentage of average loans & leases, net of unearned income were 0.03% and 0.02% for the first half of 2024 and 2023, respectively. Net charge-offs were $2.1 million for the first quarter of 2024.

Capital

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 15.8% at June 30, 2024, while estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 13.5%, 13.5% and 11.6%, respectively. The June 30, 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 2024 or 2023.

About United Bankshares, Inc.

As of June 30, 2024, United had consolidated assets of approximately $30.0 billion and is the 38th largest banking company in the U.S. based on market capitalization. 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 June 30, 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 June 30, 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; risks relating to the merger with Piedmont, including the successful integration of operations of Piedmont; 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									Six Months Ended
EARNINGS SUMMARY:	June 2024			June 2023			March 2024			June 2024			June 2023
Interest income	$	374,184		$	345,932		$	369,180		$	743,364		$	675,235
Interest expense		148,469			118,471			146,691			295,160			213,454
Net interest income		225,715			227,461			222,489			448,204			461,781
Provision for credit losses		5,779			11,440			5,740			11,519			18,330
Noninterest income		30,223			35,178			32,212			62,435			67,922
Noninterest expense		134,774			135,288			140,742			275,516			272,707
Income before income taxes		115,385			115,911			108,219			223,604			238,666
Income taxes		18,878			23,452			21,405			40,283			47,900
Net income	$	96,507		$	92,459		$	86,814		$	183,321		$	190,766

PER COMMON SHARE:
Net income:
Basic	$	0.71		$	0.68		$	0.64		$	1.36		$	1.42
Diluted		0.71			0.68			0.64			1.35			1.41
Cash dividends	$	0.37		$	0.36			0.37			0.74			0.72
Book value								35.56			35.92			34.37
Closing market price							$	35.79		$	32.44		$	29.67
Common shares outstanding:
Actual at period end, net of treasury shares								135,192,675			135,195,704			134,934,858
Weighted average-basic		135,137,901			134,683,010			134,808,634			134,881,314			134,472,074
Weighted average-diluted		135,314,785			134,849,818			135,121,380			135,103,288			134,748,868

FINANCIAL RATIOS:
Return on average assets		1.32	%		1.26	%		1.19	%		1.25	%		1.31	%
Return on average shareholders’ equity		7.99	%		7.96	%		7.25	%		7.62	%		8.34	%
Return on average tangible equity (non-GAAP)⁽¹⁾		13.12	%		13.47	%		11.98	%		12.55	%		14.20	%
Average equity to average assets		16.54	%		15.83	%		16.36	%		16.45	%		15.66	%
Net interest margin		3.50	%		3.51	%		3.44	%		3.47	%		3.57	%

PERIOD END BALANCES:				June 30 2024			December 31 2023			June 30 2023			March 31 2024
Assets				$	29,957,418		$	29,926,482		$	29,694,651		$	30,028,798
Earning assets					26,572,087			26,623,652			26,335,600			26,659,694
Loans & leases, net of unearned income					21,598,727			21,359,084			20,764,291			21,520,076
Loans held for sale					66,475			56,261			91,296			44,426
Investment securities					3,650,582			4,125,754			4,342,714			3,954,519
Total deposits					23,066,440			22,819,319			22,369,753			22,919,746
Shareholders’ equity					4,856,633			4,771,240			4,637,043			4,807,441

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									Six Months Ended
	June			June			March			June			June
		2024			2023			2024			2024			2023
Interest & Loan Fees Income (GAAP)	$	374,184		$	345,932		$	369,180		$	743,364		$	675,235
Tax equivalent adjustment		867			1,144			872			1,739			2,279
Interest & Fees Income (FTE) (non-GAAP)		375,051			347,076			370,052			745,103			677,514
Interest Expense		148,469			118,471			146,691			295,160			213,454
Net Interest Income (FTE) (non-GAAP)		226,582			228,605			223,361			449,943			464,060

Provision for Credit Losses		5,779			11,440			5,740			11,519			18,330

Noninterest Income:
Fees from trust services		4,744			4,516			4,646			9,390			9,296
Fees from brokerage services		4,959			3,918			5,267			10,226			8,118
Fees from deposit services		9,326			9,325			8,971			18,297			18,687
Bankcard fees and merchant discounts		1,355			1,707			1,873			3,228			3,414
Other charges, commissions, and fees		869			949			858			1,727			2,087
Income from bank-owned life insurance		2,549			2,022			2,418			4,967			3,913
Income from mortgage banking activities		3,901			7,907			5,298			9,199			14,291
Mortgage loan servicing income		783			9,841			789			1,572			12,117
Net losses on investment securities		(218	)		(7,336	)		(99	)		(317	)		(7,741	)
Other noninterest income		1,955			2,329			2,191			4,146			3,740
Total Noninterest Income		30,223			35,178			32,212			62,435			67,922

Noninterest Expense:
Employee compensation		58,501			58,502			59,293			117,794			113,916
Employee benefits		12,147			12,236			14,671			26,818			25,671
Net occupancy		11,400			11,409			12,343			23,743			23,242
Data processing		7,290			7,256			7,463			14,753			14,729
Amortization of intangibles		910			1,279			910			1,820			2,558
OREO expense		268			315			159			427			982
Net losses (gains) on the sale of OREO properties		32			16			(83	)		(51	)		(27	)
Equipment expense		7,548			8,026			6,853			14,401			15,022
FDIC insurance expense		5,058			4,570			6,455			11,513			9,157
Mortgage loan servicing expense and impairment		1,011			1,699			1,015			2,026			3,583
Expense for the reserve for unfunded loan commitments		(2,177	)		(2,021	)		(1,790	)		(3,967	)		579
Other noninterest expense		32,786			32,001			33,453			66,239			63,295
Total Noninterest Expense		134,774			135,288			140,742			275,516			272,707

Income Before Income Taxes (FTE) (non-GAAP)		116,252			117,055			109,091			225,343			240,945

Tax equivalent adjustment		867			1,144			872			1,739			2,279

Income Before Income Taxes (GAAP)		115,385			115,911			108,219			223,604			238,666

Taxes		18,878			23,452			21,405			40,283			47,900

Net Income	$	96,507		$	92,459		$	86,814		$	183,321		$	190,766

MEMO: Effective Tax Rate		16.36	%		20.23	%		19.78	%		18.02	%		20.07	%

UNITED BANKSHARES, INC. AND SUBSIDIARIES Washington, D.C. and Charleston, WV Stock Symbol: UBSI (In Thousands Except for Per Share Data)

Consolidated Balance Sheets
	June 2024			June 2023			June 30			December 31			June 30			March 31
	Q-T-D Average			Q-T-D Average				2024			2023			2023			2024

Cash & Cash Equivalents	$	1,174,885		$	1,282,923		$	1,858,861		$	1,598,943		$	1,692,357		$	1,732,646

Securities Available for Sale		3,472,389			4,320,055			3,315,726			3,786,377			4,005,324			3,613,975
Less: Allowance for credit losses		0			0			0			0			0			0
Net available for sale securities		3,472,389			4,320,055			3,315,726			3,786,377			4,005,324			3,613,975
Securities Held to Maturity		1,020			1,020			1,020			1,020			1,020			1,020
Less: Allowance for credit losses		(19	)		(19	)		(19	)		(17	)		(19	)		(19	)
Net held to maturity securities		1,001			1,001			1,001			1,003			1,001			1,001
Equity Securities		12,832			8,081			11,094			8,945			8,443			8,762
Other Investment Securities		312,684			332,904			322,761			329,429			327,946			330,781
Total Securities		3,798,906			4,662,041			3,650,582			4,125,754			4,342,714			3,954,519
Total Cash and Securities		4,973,791			5,944,964			5,509,443			5,724,697			6,035,071			5,687,165

Loans held for sale		56,298			72,966			66,475			56,261			91,296			44,426
Commercial Loans & Leases		15,815,382			14,980,069			15,894,244			15,535,204			15,083,157			15,725,038
Mortgage Loans		4,763,655			4,347,941			4,759,798			4,728,374			4,437,158			4,769,495
Consumer Loans		1,016,764			1,322,889			956,385			1,109,607			1,261,611			1,038,035

Gross Loans		21,595,801			20,650,899			21,610,427			21,373,185			20,781,926			21,532,568
Unearned income		(12,201	)		(18,356	)		(11,700	)		(14,101	)		(17,635	)		(12,492	)
Loans & Leases, net of unearned income		21,583,600			20,632,543			21,598,727			21,359,084			20,764,291			21,520,076
Allowance for Loan & Lease Losses		(263,050	)		(240,611	)		(267,423	)		(259,237	)		(250,721	)		(262,905	)
Net Loans		21,320,550			20,391,932			21,331,304			21,099,847			20,513,570			21,257,171
Mortgage Servicing Rights		4,116			14,662			3,934			4,554			4,627			4,241
Goodwill		1,888,889			1,888,889			1,888,889			1,888,889			1,888,889			1,888,889
Other Intangibles		11,275			17,164			10,685			12,505			16,339			11,595
Operating Lease Right-of-Use Asset		85,210			78,872			83,045			86,986			80,641			86,074
Other Real Estate Owned		2,335			4,070			2,156			2,615			3,756			2,670
Bank Owned Life Insurance		491,599			482,791			493,498			486,895			483,906			490,596
Other Assets		536,101			542,502			567,989			563,233			576,556			555,971
Total Assets	$	29,370,164		$	29,438,812		$	29,957,418		$	29,926,482		$	29,694,651		$	30,028,798

MEMO: Interest-earning Assets	$	26,012,725		$	26,121,011		$	26,572,087		$	26,623,652		$	26,335,600		$	26,659,694

Interest-bearing Deposits	$	16,740,124		$	15,520,461		$	17,134,728		$	16,670,239		$	15,918,927		$	16,902,397
Noninterest-bearing Deposits		5,976,971			6,500,259			5,931,712			6,149,080			6,450,826			6,017,349
Total Deposits		22,717,095			22,020,720			23,066,440			22,819,319			22,369,753			22,919,746

Short-term Borrowings		206,234			177,315			203,519			196,095			176,739			207,727
Long-term Borrowings		1,290,405			2,307,485			1,489,764			1,789,103			2,188,438			1,739,434
Total Borrowings		1,496,639			2,484,800			1,693,283			1,985,198			2,365,177			1,947,161

Operating Lease Liability		91,437			83,335			89,308			92,885			85,038			92,266
Other Liabilities		207,100			190,863			251,754			257,840			237,640			262,184
Total Liabilities		24,512,271			24,779,718			25,100,785			25,155,242			25,057,608			25,221,357

Preferred Equity		0			0			0			0			0			0
Common Equity		4,857,893			4,659,094			4,856,633			4,771,240			4,637,043			4,807,441
Total Shareholders' Equity		4,857,893			4,659,094			4,856,633			4,771,240			4,637,043			4,807,441

Total Liabilities & Equity	$	29,370,164		$	29,438,812		$	29,957,418		$	29,926,482		$	29,694,651		$	30,028,798

MEMO: Interest-bearing Liabilities	$	18,236,763		$	18,005,261		$	18,828,011		$	18,655,437		$	18,284,104		$	18,849,558

UNITED BANKSHARES, INC. AND SUBSIDIARIES Washington, D.C. and Charleston, WV Stock Symbol: UBSI (In Thousands Except for Per Share Data)

	Three Months Ended									Six Months Ended
	June			June			March			June			June
Quarterly/Year-to-Date Share Data:	2024			2023			2024			2024			2023
Earnings Per Share:
Basic	$	0.71		$	0.68		$	0.64		$	1.36		$	1.42
Diluted	$	0.71		$	0.68		$	0.64		$	1.35		$	1.41
Common Dividend Declared Per Share	$	0.37		$	0.36		$	0.37		$	0.74		$	0.72
High Common Stock Price	$	36.08		$	35.61		$	38.18		$	38.18		$	42.45
Low Common Stock Price	$	30.68		$	27.68		$	32.92		$	30.68		$	27.68
Average Shares Outstanding (Net of Treasury Stock):
Basic		135,137,901			134,683,010			134,808,634			134,881,314			134,472,074
Diluted		135,314,785			134,849,818			135,121,380			135,103,288			134,748,868

Common Dividends	$	50,204		$	48,628		$	50,213		$	100,417		$	97,348
Dividend Payout Ratio		52.02	%		52.59	%		57.84	%		54.78	%		51.03	%

				June 30			December 31			June 30			March 31
EOP Share Data:				2024			2023			2023			2024
Book Value Per Share				$	35.92		$	35.36		$	34.37		$	35.56
Tangible Book Value Per Share (non-GAAP) ⁽¹⁾				$	21.87		$	21.27		$	20.25		$	21.50
52-week High Common Stock Price				$	38.74		$	42.45		$	44.15		$	38.74
Date				12/14/23			2/3/2023			11/11/22			12/14/23
52-week Low Common Stock Price				$	25.35		$	25.35		$	27.68		$	25.35
Date				10/24/23			10/24/23			5/12/23			10/24/23

EOP Shares Outstanding (Net of Treasury Stock):					135,195,704			134,949,063			134,934,858			135,192,675

Memorandum Items:
Employees (full-time equivalent)					2,644			2,736			2,799			2,716


Note:
(1) Tangible Book Value Per Share:
Total Shareholders' Equity (GAAP)				$	4,856,633		$	4,771,240		$	4,637,043		$	4,807,441
Less: Total Intangibles					(1,899,574	)		(1,901,394	)		(1,905,228	)		(1,900,484	)
Tangible Equity (non-GAAP)				$	2,957,059		$	2,869,846		$	2,731,815		$	2,906,957
÷ EOP Shares Outstanding (Net of Treasury Stock)					135,195,704			134,949,063			134,934,858			135,192,675
Tangible Book Value Per Share (non-GAAP)				$	21.87		$	21.27		$	20.25		$	21.50

UNITED BANKSHARES, INC. AND SUBSIDIARIES Washington, D.C. and Charleston, WV Stock Symbol: UBSI (In Thousands Except for Per Share Data)


	Three Months Ended June 2024							Three Months Ended June 2023							Three Months Ended March 2024
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	$	930,453		$	12,787	5.53	%	$	994,072		$	12,706	5.13	%	$	882,656		$	12,303	5.61	%
Investment securities:
Taxable		3,496,310			33,968	3.89	%		4,274,123			36,721	3.44	%		3,743,157			34,722	3.71	%
Tax-exempt		209,114			1,488	2.85	%		387,918			2,718	2.80	%		212,375			1,474	2.78	%
Total securities		3,705,424			35,456	3.83	%		4,662,041			39,439	3.38	%		3,955,532			36,196	3.66	%
Loans and loans held for sale, net of unearned income ⁽²⁾		21,639,898			326,808	6.07	%		20,705,509			294,931	5.71	%		21,508,611			321,553	6.01	%
Allowance for loan losses		(263,050	)						(240,611	)						(259,341	)
Net loans and loans held for sale		21,376,848				6.14	%		20,464,898				5.78	%		21,249,270				6.08	%
Total earning assets		26,012,725		$	375,051	5.79	%		26,121,011		$	347,076	5.33	%		26,087,458		$	370,052	5.70	%
Other assets		3,357,439							3,317,801							3,344,925
TOTAL ASSETS	$	29,370,164						$	29,438,812						$	29,432,383

LIABILITIES:
Interest-Bearing Liabilities:
Interest-bearing deposits	$	16,740,124		$	132,425	3.18	%	$	15,520,461		$	91,577	2.37	%	$	16,663,765		$	128,377	3.10	%
Short-term borrowings		206,234			2,206	4.30	%		177,315			1,489	3.37	%		203,570			2,082	4.11	%
Long-term borrowings		1,290,405			13,838	4.31	%		2,307,485			25,405	4.42	%		1,500,237			16,232	4.35	%
Total interest-bearing liabilities		18,236,763			148,469	3.27	%		18,005,261			118,471	2.64	%		18,367,572			146,691	3.21	%
Noninterest-bearing deposits		5,976,971							6,500,259							5,941,866
Accrued expenses and other liabilities		298,537							274,198							306,469
TOTAL LIABILITIES		24,512,271							24,779,718							24,615,907
SHAREHOLDERS’ EQUITY		4,857,893							4,659,094							4,816,476
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	29,370,164						$	29,438,812						$	29,432,383
NET INTEREST INCOME				$	226,582						$	228,605						$	223,361
INTEREST RATE SPREAD						2.52	%						2.69	%						2.49	%
NET INTEREST MARGIN						3.50	%						3.51	%						3.44	%

(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)


	Six Months Ended June 2024							Six Months Ended June 2023
Selected Average Balances and Yields:	Average					Average		Average					Average
ASSETS:	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	$	906,555		$	25,090	5.57	%	$	965,393		$	23,689	4.95	%
Investment securities:
Taxable		3,619,733			68,690	3.80	%		4,339,132			72,980	3.36	%
Tax-exempt		210,745			2,962	2.81	%		387,795			5,458	2.81	%
Total securities		3,830,478			71,652	3.74	%		4,726,927			78,438	3.32	%
Loans and loans held for sale, net of unearned income ⁽²⁾		21,574,254			648,361	6.04	%		20,694,619			575,387	5.60	%
Allowance for loan losses		(261,196	)						(237,726	)
Net loans and loans held for sale		21,313,058				6.11	%		20,456,893				5.67	%
Total earning assets		26,050,091		$	745,103	5.74	%		26,149,213		$	677,514	5.21	%
Other assets		3,350,473							3,324,719
TOTAL ASSETS	$	29,400,564						$	29,473,932

LIABILITIES:
Interest-Bearing Liabilities:
Interest-bearing deposits	$	16,701,944		$	260,802	3.14	%	$	15,354,468		$	160,169	2.10	%
Short-term borrowings		204,902			4,288	4.21	%		171,994			2,646	3.10	%
Long-term borrowings		1,395,321			30,070	4.33	%		2,362,437			50,639	4.32	%
Total interest-bearing liabilities		18,302,167			295,160	3.24	%		17,888,899			213,454	2.41	%
Noninterest-bearing deposits		5,959,418							6,697,549
Accrued expenses and other liabilities		301,673							272,575
TOTAL LIABILITIES		24,563,258							24,859,023
SHAREHOLDERS’ EQUITY		4,837,306							4,614,909
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	29,400,564						$	29,473,932
NET INTEREST INCOME				$	449,943						$	464,060
INTEREST RATE SPREAD						2.50	%						2.80	%
NET INTEREST MARGIN						3.47	%						3.57	%

(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												Six Months Ended
	June				June				March				June				June
Selected Financial Ratios:	2024				2023				2024				2024				2023
Return on Average Assets		1.32	%			1.26	%			1.19	%			1.25	%			1.31	%
Return on Average Shareholders’ Equity		7.99	%			7.96	%			7.25	%			7.62	%			8.34	%
Return on Average Tangible Equity (non-GAAP) ⁽¹⁾		13.12	%			13.47	%			11.98	%			12.55	%			14.20	%
Efficiency Ratio		52.66	%			51.51	%			55.26	%			53.96	%			51.48	%
Price / Earnings Ratio		11.40		x		10.84		x		13.96		x		11.98		x		10.50		x

Note:
(1) Return on Average Tangible Equity:
(a) Net Income (GAAP)	$	96,507			$	92,459			$	86,814			$	183,321			$	190,766
(b) Number of Days		91				91				91				182				181
Average Total Shareholders' Equity (GAAP)	$	4,857,893			$	4,659,094			$	4,816,476			$	4,837,306			$	4,614,909
Less: Average Total Intangibles		(1,900,164	)			(1,906,053	)			(1,901,074	)			(1,900,619	)			(1,906,689	)
(c) Average Tangible Equity (non-GAAP)	$	2,957,729			$	2,753,041			$	2,915,402			$	2,936,687			$	2,708,220
Return on Average Tangible Equity (non-GAAP) [(a) / (b)] x 366 or 365 / (c)		13.12	%			13.47	%			11.98	%			12.55	%			14.20	%


Selected Financial Ratios:					June 30 2024				December 31 2023				June 30 2023				March 31 2024
Loans & Leases, net of unearned income / Deposit Ratio						93.64	%			93.60	%			92.82	%			93.89	%
Allowance for Loan & Lease Losses/ Loans & Leases, net of unearned income						1.24	%			1.21	%			1.21	%			1.22	%
Allowance for Credit Losses ⁽²⁾/ Loans & Leases, net of unearned income						1.43	%			1.42	%			1.43	%			1.42	%
Nonaccrual Loans / Loans & Leases, net of unearned income						0.25	%			0.14	%			0.13	%			0.29	%
90-Day Past Due Loans/ Loans & Leases, net of unearned income						0.06	%			0.07	%			0.07	%			0.05	%
Non-performing Loans/ Loans & Leases, net of unearned income						0.30	%			0.21	%			0.20	%			0.35	%
Non-performing Assets/ Total Assets						0.23	%			0.16	%			0.15	%			0.26	%
Primary Capital Ratio						17.06	%			16.79	%			16.45	%			16.86	%
Shareholders' Equity Ratio						16.21	%			15.94	%			15.62	%			16.01	%
Price / Book Ratio						0.90		x		1.06		x		0.86		x		1.01		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									Six Months Ended
	June 30			June 30			March 31			June 30			June 30
Mortgage Banking Data: ⁽¹⁾	2024			2023			2024			2024			2023
Loans originated	$	185,322		$	271,829		$	176,906		$	362,228		$	449,637
Loans sold		163,273			248,709			188,741			352,014			415,220

				June 30			December 31			June 30			March 31
Mortgage Loan Servicing Data:				2024			2023			2023			2024
Balance of loans serviced				$	1,138,443		$	1,202,448		$	1,242,441		$	1,173,246
Number of loans serviced					11,853			12,419			12,843			12,163

				June 30			December 31			June 30			March 31
Asset Quality Data:				2024			2023			2023			2024
EOP Non-Accrual Loans				$	52,929		$	30,919		$	26,545		$	63,053
EOP 90-Day Past Due Loans					12,402			14,579			15,007			11,329
Total EOP Non-performing Loans				$	65,331		$	45,498		$	41,552		$	74,382
EOP Other Real Estate Owned					2,156			2,615			3,756			2,670
Total EOP Non-performing Assets				$	67,487		$	48,113		$	45,308		$	77,052


	Three Months Ended									Six Months Ended
	June 30			June 30			March 31			June 30			June 30
Allowance for Loan & Lease Losses:	2024			2023			2024			2024			2023
Beginning Balance	$	262,905		$	240,491		$	259,237		$	259,237		$	234,746
Gross Charge-offs		(2,542	)		(2,274	)		(3,576	)		(6,118	)		(5,210	)
Recoveries		1,281			1,065			1,506			2,787			2,856
Net Charge-offs		(1,261	)		(1,209	)		(2,070	)		(3,331	)		(2,354	)
Provision for Loan & Lease Losses		5,779			11,439			5,738			11,517			18,329
Ending Balance	$	267,423		$	250,721		$	262,905		$	267,423		$	250,721
Reserve for lending-related commitments		40,739			46,768			42,915			40,739			46,768
Allowance for Credit Losses (2)	$	308,162		$	297,489		$	305,820		$	308,162		$	297,489


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, beginning with the periods 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240725766893/en/

W. Mark Tatterson

Chief Financial Officer

(800) 445-1347 ext. 8716

Source: United Bankshares, Inc.

FAQ

What were United Bankshares' (UBSI) earnings for Q2 2024?

United Bankshares reported earnings of $96.5 million, or $0.71 per diluted share, for Q2 2024.

How did UBSI's Q2 2024 earnings compare to Q1 2024?

UBSI's Q2 2024 earnings of $96.5 million were higher than Q1 2024 earnings of $86.8 million.

What was UBSI's net interest income change in Q2 2024 compared to Q1 2024?

UBSI's net interest income increased by $3.2 million in Q2 2024 compared to Q1 2024.

Did United Bankshares announce any significant business developments in Q2 2024?

Yes, UBSI announced a merger agreement with Piedmont Bancorp, Inc., expected to close in late Q4 2024 or early Q1 2025.

What was UBSI's capital position as of June 30, 2024?

UBSI reported a strong capital position with an estimated risk-based capital ratio of 15.8% as of June 30, 2024.

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

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FAQ

What were United Bankshares' (UBSI) earnings for Q2 2024?

How did UBSI's Q2 2024 earnings compare to Q1 2024?

What was UBSI's net interest income change in Q2 2024 compared to Q1 2024?

Did United Bankshares announce any significant business developments in Q2 2024?

What was UBSI's capital position as of June 30, 2024?

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

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FAQ

What were United Bankshares' (UBSI) earnings for Q2 2024?

How did UBSI's Q2 2024 earnings compare to Q1 2024?

What was UBSI's net interest income change in Q2 2024 compared to Q1 2024?

Did United Bankshares announce any significant business developments in Q2 2024?

What was UBSI's capital position as of June 30, 2024?

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UBSI Rankings

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