United Bankshares, Inc. Announces Earnings for the Second Quarter and First Half of 2022

Rhea-AI Summary

United Bankshares, Inc. (NASDAQ: UBSI) reported a strong second quarter of 2022 with earnings of $95.6 million, or $0.71 per diluted share, up from $81.7 million, or $0.60 per diluted share in Q1 2022. The annualized loan growth was 15%, while net interest margin expanded to 3.38%, a 39 basis points increase. Credit quality remains robust with non-performing loans at 0.37%. The net interest income rose by 12% compared to Q1 2022, driven by rising market rates. However, noninterest income fell by 5% due to a decline in mortgage banking activities.

Positive

• Earnings increased by $13.9 million, or 17%, from Q1 2022.
• Annualized loan growth reached 15%, indicating strong market demand.
• Net interest margin rose to 3.38%, marking a significant expansion.
• Non-performing loans were low at 0.37%, reflecting strong asset quality.
• Net interest income surged by $23.4 million, or 12% from Q1 2022.

Negative

• Noninterest income decreased by $2.4 million, or 5% from Q1 2022.
• Net PPP loan fee income dropped by $542 thousand to $3.6 million.

WASHINGTON & CHARLESTON, W.V.--(BUSINESS WIRE)-- United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today reported earnings for the second quarter of 2022 of $95.6 million, or $0.71 per diluted share, as compared to earnings of $81.7 million, or $0.60 per diluted share, for the first quarter of 2022. The quarter was highlighted by continued loan growth, net interest margin expansion, and strong credit quality metrics.

Annualized loan growth, excluding Paycheck Protection Program (“PPP”) loans, for the second quarter and first half of 2022 was 15% and 13%, respectively. Second quarter 2022 net interest margin of 3.38% increased 39 basis points from the first quarter of 2022. Non-performing loans as a percentage of loans and leases, net of unearned income was a low 0.37% at June 30, 2022.

Second quarter 2022 results produced annualized returns on average assets, average equity and average tangible equity, a non-GAAP measure, of 1.32%, 8.33% and 14.23%, respectively, compared to annualized returns on average assets, average equity, and average tangible equity of 1.13%, 6.96% and 11.63%, respectively, for the first quarter of 2022.

“During the second quarter, we continued our strong momentum from the beginning of the year and are well positioned for the second half of 2022,” stated Richard M. Adams, Jr., United’s Chief Executive Officer. “We had meaningful net interest margin expansion and continue to experience promising loan growth in our markets. We remain well capitalized with solid asset quality, have sound liquidity levels, and maintain our longstanding commitments to strong risk management practices, credit underwriting discipline and meeting our customers’ needs.”

Second quarter of 2022 compared to the first quarter of 2022

Net interest income for the second quarter of 2022 increased $23.4 million, or 12%, from the first quarter of 2022. Tax-equivalent net interest income, a non-GAAP measure which adjusts for the tax-favored status of income from certain loans and investments, for the second quarter of 2022 also increased $23.4 million, or 12%, from the first quarter of 2022. The increase in net interest income and tax-equivalent net interest income was primarily due to higher interest income on earning assets driven by rising market interest rates and a change in the asset mix to higher earning assets. The interest rate spread of 3.24% for the second quarter of 2022 increased 38 basis points from the first quarter of 2022 due to a 42 basis point increase in the average yield on earning assets partially offset by a 4 basis point increase in the average cost of funds. A decrease in average earning assets of $426.0 million, or 2%, from the first quarter of 2022, driven by a decrease of $1.3 billion in short-term investments, was partially offset by increases in higher yielding average net loans and loans held for sale of $489.9 million and average investment securities of $375.8 million. Acquired loan accretion income increased $1.3 million to $5.4 million for the second quarter of 2022. Net PPP loan fee income decreased $542 thousand to $3.6 million for the second quarter of 2022. The net interest margin of 3.38% for the second quarter of 2022 was an increase of 39 basis points from the net interest margin of 2.99% for the first quarter of 2022.

The provision for credit losses was a net benefit of $1.8 million for the second quarter of 2022 as compared to a net benefit of $3.4 million for the first quarter of 2022. The net benefit in the second quarter reflects continued strong performance trends within the loan portfolio partially offset by loan growth and the impact of reasonable and supportable forecasts of future macroeconomic conditions.

Noninterest income for the second quarter of 2022 decreased $2.4 million, or 5%, from the first quarter of 2022. The decrease in noninterest income was primarily due to a decrease of $6.8 million in income from mortgage banking activities mainly due to lower mortgage loan origination and sale volume driven by the rising rate environment and a lower margin on loans sold in the secondary market. Income from bank-owned life insurance (“BOLI”) increased $1.9 million from the first quarter of 2022 to $4.1 million primarily due to the recognition of death benefits.

Noninterest expense for the second quarter of 2022 increased $2.0 million, or 1%, from the first quarter of 2022. The increase in noninterest expense resulted from higher amounts of certain general operating expenses including an increase in the expense for reserve for unfunded loan commitments of $662 thousand.

For the second quarter of 2022, income tax expense was $23.5 million as compared to $20.1 million for the first quarter of 2022. The increase of $3.4 million was due to higher earnings. United’s effective tax rate was 19.8% for both the second and first quarters of 2022.

Second quarter of 2022 compared to the second quarter of 2021

Earnings for the second quarter of 2022 were $95.6 million, or $0.71 per diluted share, as compared to earnings of $94.8 million, or $0.73 per diluted share, for the second quarter of 2021.

Net interest income for the second quarter of 2022 increased $28.4 million, or 15%, from the second quarter of 2021. 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 2022 also increased $28.4 million, or 15%, from the second quarter of 2021. United completed its acquisition of Community Bankers Trust Corporation (“Community Bankers Trust”) on December 3, 2021. The increase in net interest income and tax-equivalent net interest income was primarily due to the impact of higher average earning assets, driven by the Community Bankers Trust acquisition, the impact of rising market interest rates on earning assets and a change in the asset mix to higher earning assets. These increases were partially offset by lower acquired loan accretion income, lower PPP loan fee income and higher average interest-bearing deposit balances as a result of the Community Bankers Trust acquisition. Average earning assets for the second quarter of 2022 increased $1.7 billion, or 7%, from the second quarter of 2021 due to a $1.6 billion increase in average investment securities and a $1.2 billion increase in average net loans and loans held for sale partially offset by a $1.2 billion decrease in average short-term investments. The interest rate spread for the second quarter of 2022 increased 26 basis points from the second quarter of 2021 to 3.24% due to a 21 basis point increase in the average yield on earning assets and a 5 basis point decrease in the average cost of funds. Average interest-bearing deposits for the second quarter of 2022 increased $917.1 million, or 7%, from the second quarter of 2021; however, the yield on interest-bearing deposits decreased 5 basis points from the second quarter of 2021. Acquired loan accretion income was $5.4 million and $9.7 million for the second quarter of 2022 and 2021, respectively, a decrease of $4.3 million. Net PPP loan fee income was $3.6 million and $9.0 million for the second quarter of 2022 and 2021, respectively, a decrease of $5.4 million. The net interest margin of 3.38% for the second quarter of 2022 was an increase of 24 basis points from the net interest margin of 3.14% for the second quarter of 2021.

The provision for credit losses was a net benefit of $1.8 million for the second quarter of 2022 as compared to a net benefit of $8.9 million for the second quarter of 2021.

Noninterest income for the second quarter of 2022 was $43.6 million, which was a decrease of $19.3 million, or 31%, from the second quarter of 2021. The decrease in noninterest income was driven by a $24.5 million decrease in income from mortgage banking activities mainly due to lower mortgage loan origination and sale volume driven by the rising rate environment and a lower margin on loans sold in the secondary market. BOLI income for the second quarter of 2022 was $4.1 million, an increase of $2.5 million from the second quarter of 2021. Fees from deposit services for the second quarter of 2022 were $10.8 million, an increase of $1.4 million from the second quarter of 2021.

Noninterest expense for the second quarter of 2022 was $141.2 million, an increase of $2.2 million, or 2%, from the second quarter of 2021 primarily due to a $5.0 million increase in the expense for reserve for unfunded loan commitments and a $3.8 million increase in other noninterest expense from higher amounts of certain general operating expenses. These increases in noninterest expense were partially offset by a $5.9 million decrease in employee compensation primarily due to lower employee commissions, incentives and overtime related to mortgage banking production partially offset by additional employees from the Community Bankers Trust acquisition.

For the second quarter of 2022, income tax expense was $23.5 million as compared to $24.5 million for the second quarter of 2021. The decrease of $924 thousand was primarily due to a lower effective tax rate. United’s effective tax rate was 19.8% for the second quarter of 2022 and 20.5% for the second quarter of 2021.

First half of 2022 compared to the first half of 2021

Earnings for the first six months of 2022 were $177.3 million, or $1.30 per diluted share, as compared to earnings of $201.7 million, or $1.56 per diluted share, for the first six months of 2021.

Net interest income for the first six months of 2022 increased $28.9 million, or 8%, from the first six months of 2021. 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 six months of 2022 increased $29.0 million, or 8%, from the first six months of 2021. The increase in net interest income and tax-equivalent net interest income was primarily due to an increase in average earning assets from the Community Bankers Trust acquisition and organic growth, the impact of rising market interest rates on earning assets and due to lower interest expense on deposits. These increases were partially offset by lower PPP loan fee income and lower acquired loan accretion income. Average earning assets for the first six months of 2022 increased $2.1 billion, or 9%, from the first six months of 2021 due to a $1.6 billion increase in average investment securities and a $763.8 million increase in average net loans and loans held for sale partially offset by a $219.9 million decrease in average short-term investments. The interest rate spread for the first six months of 2022 decreased 1 basis point from the first six months of 2021 due to a 9 basis point decrease in the average yield on earning assets partially offset by an 8 basis point decrease in the average cost of funds. Net PPP loan fee income was $7.7 million and $20.3 million for the first half of 2022 and 2021, respectively, a decrease of $12.6 million. Acquired loan accretion income was $9.5 million and $19.5 million for the first half of 2022 and 2021, respectively, a decrease of $10.0 million. The net interest margin of 3.18% for the first six months of 2022 was a decrease of 4 basis points from the net interest margin of 3.22% for the first six months of 2021.

The provision for credit losses was a net benefit of $5.2 million for the first six months 2022 as compared to a net benefit of $8.7 million for the first six months of 2021.

Noninterest income for the first six months of 2022 was $89.6 million, which was a decrease of $65.8 million, or 42%, from the first six months of 2021. The decrease was driven by a $70.7 million decrease in income from mortgage banking activities mainly due to lower mortgage loan origination and sale volume driven by the rising rate environment and a lower margin on loans sold in the secondary market. BOLI income for the first six months of 2022 was $6.3 million, an increase of $3.3 million from the first six months of 2021. Fees from deposit services for the first six months of 2022 were $21.0 million, an increase of $2.7 million from the first six months of 2021.

Noninterest expense for the first six months of 2022 was $280.3 million, a decrease of $7.6 million, or 3%, from the first six months of 2021 driven by decreases in employee compensation of $15.7 million, employee benefits of $5.0 million, real estate owned (“OREO”) expense of $3.8 million and mortgage loan servicing expense and impairment of $3.4 million partially offset by an increase in the expense for reserve for unfunded loan commitments of $9.5 million. The decrease in employee compensation was due to lower employee commissions, incentives and overtime related to mortgage banking production partially offset by additional employees from the Community Bankers Trust acquisition. Employee benefits decreased primarily due to changes in deferred compensation plans resulting from market fluctuations. The decrease in OREO expense was primarily due to fewer declines in the fair value of OREO properties. The decrease in mortgage loan servicing expense and impairment was due to lower amortization of mortgage servicing rights (“MSR”) and a recovery of the MSR valuation allowance of $883 thousand during the first six months of 2022 as compared to a MSR impairment of $250 thousand during the first six months of 2021.

For the first six months of 2022, income tax expense was $43.6 million as compared to $52.0 million for the first six months of 2021 primarily due to lower earnings and a lower effective tax rate. United’s effective tax rate was 19.8% for the first six months of 2022 and 20.5% for the first six months of 2021.

Credit Quality

United’s asset quality continues to be sound. At June 30, 2022, non-performing loans were $70.3 million, or 0.37% of loans & leases, net of unearned income, down from $90.8 million, or 0.50% of loans & leases, net of unearned income, at December 31, 2021. Total non-performing assets of $84.2 million, including OREO of $13.8 million at June 30, 2022, represented 0.29% of total assets as compared to non-performing assets of $105.6 million, including OREO of $14.8 million, or 0.36% of total assets at December 31, 2021.

As of June 30, 2022, the allowance for loan & lease losses was $213.7 million, or 1.13% of loans & leases, net of unearned income, as compared to $216.0 million, or 1.20% of loans & leases, net of unearned income, at December 31, 2021. Net recoveries were $941 thousand and $2.9 million for the second quarter and first half of 2022, respectively. Net charge-offs were $5.2 million and $9.8 million for the second quarter and first half of 2021, respectively. Annualized net recoveries as a percentage of average loans & leases, net of unearned income were (0.02)% and (0.03)% for the second quarter and first half of 2022, respectively. Annualized net charge-offs as a percentage of average loans & leases, net of unearned income were 0.10% and 0.15% for the for the second quarter and first half of 2021, respectively.

Capital

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 14.8% at June 30, 2022, while estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 12.7%, 12.7% and 10.5%, respectively. The June 30, 2022 ratios reflect United’s election of a five-year transition provision, allowed by the Federal Reserve Board and other federal banking agencies in response to the COVID-19 pandemic, to delay for two years the full impact of CECL on regulatory capital, followed by a three-year transition period. The regulatory requirements for a well-capitalized financial institution are a risk-based capital ratio of 10.0%, a Common Equity Tier 1 capital ratio of 6.5%, a Tier 1 capital ratio of 8.0% and a leverage ratio of 5.0%.

During the first half of 2022 and 2021, United repurchased, under a previously announced stock repurchase plan, shares of its common stock. During the second quarter of 2022, United repurchased approximately 1.5 million shares of its common stock at an average price per share of $34.47. United did not repurchase any shares of its common stock during the second quarter of 2021. During the first half of 2022, United repurchased approximately 2.3 million shares of its common stock at an average price per share of $34.69. During the first half of 2021, United repurchased approximately 306 thousand shares of its common stock at an average price per share of $32.52.

About United Bankshares, Inc.

As of June 30, 2022, United had consolidated assets of approximately $28.8 billion. United is the parent company of United Bank which comprises nearly 250 offices in Virginia, Maryland, Washington, D.C., North Carolina, South Carolina, Georgia, Pennsylvania, West Virginia, and Ohio. United’s stock is traded on the NASDAQ Global Select Market under the quotation symbol "UBSI".

Cautionary Statements

The Company is required under generally accepted accounting principles to evaluate subsequent events through the filing of its June 30, 2022 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, 2022 and will adjust amounts preliminarily reported, if necessary.

Use of non-GAAP Financial Measures

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

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

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

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

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

Forward-Looking Statements

In this report, we have made various statements regarding current expectations or forecasts of future events, which speak only as of the date the statements are made. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are also made from time-to-time in press releases and in oral statements made by the officers of the Company. Forward-looking statements can be identified by the use of the words “expect,” “may,” “could,” “intend,” “project,” “estimate,” “believe,” “anticipate,” and other words of similar meaning. Such forward-looking statements are based on assumptions and estimates, which although believed to be reasonable, may turn out to be incorrect. Therefore, undue reliance should not be placed upon these estimates and statements. United cannot assure that any of these statements, estimates, or beliefs will be realized and actual results may differ from those contemplated in these “forward-looking statements.” The following factors, among others, could cause the actual results of United’s operations to differ materially from its expectations: the uncertainty as to the extent of the duration, scope and impacts of the COVID-19 pandemic, on United, its colleagues, the communities United serves, and the domestic and global economy; uncertainty in U.S. fiscal and monetary policies, including the interest rate policies of the Federal Reserve Board; volatility and disruptions in global capital and credit markets, interest rate, securities market and monetary supply fluctuations; increasing rates of inflation and slower growth rates; reform of LIBOR; the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations, including those involving the Federal Reserve, FDIC, and CFPB; the effect of changes in the level of checking or savings account deposits on United’s funding costs and net interest margin; future provisions for credit losses on loans and debt securities; changes in nonperforming assets; competition; and changes in legislation or regulatory requirements. For more information about factors that could cause actual results to differ materially from United’s expectations, refer to its reports filed with the Securities and Exchange Commission, including the discussion under “Risk Factors” in the Annual Report on Form 10-K for the year ended December 31, 2021, 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
		June				June				March				June				June
EARNINGS SUMMARY:		2022				2021				2022				2022				2021
Interest income		$	227,771			$	200,186			$	202,795			$	430,566			$	405,843
Interest expense			12,868				13,669				11,293				24,161				28,366
Net interest income			214,903				186,517				191,502				406,405				377,477
Provision for credit losses			(1,807	)			(8,879	)			(3,410	)			(5,217	)			(8,736	)
Noninterest income			43,608				62,864				46,025				89,633				155,444
Noninterest expense			141,174				138,969				139,175				280,349				287,903
Income before income taxes			119,144				119,291				101,762				220,906				253,754
Income taxes			23,531				24,455				20,098				43,629				52,020
Net income		$	95,613			$	94,836			$	81,664			$	177,277			$	201,734
PER COMMON SHARE:
Net income:
Basic		$	0.71			$	0.73			$	0.60			$	1.31			$	1.56
Diluted			0.71				0.73				0.60				1.30				1.56
Cash dividends		$	0.36			$	0.35				0.36				0.72				0.70
Book value											33.77				33.34				34.01
Closing market price										$	34.88			$	35.07			$	36.50
Common shares outstanding:
Actual at period end, net of treasury shares											136,068,439				134,580,646				129,203,593
Weighted average-basic			134,623,061				128,750,851				136,058,328				135,336,729				128,693,616
Weighted average-diluted			134,863,650				129,033,988				136,435,229				135,634,398				128,946,280
FINANCIAL RATIOS:
Return on average assets			1.32	%			1.41	%			1.13	%			1.23	%			1.52	%
Return on average shareholders’ equity			8.33	%			8.69	%			6.96	%			7.63	%			9.32	%
Return on average tangible equity (non-GAAP)(1)			14.23	%			14.95	%			11.63	%			12.90	%			16.06	%
Average equity to average assets			15.88	%			16.21	%			16.22	%			16.05	%			16.31	%
Net interest margin			3.38	%			3.14	%			2.99	%			3.18	%			3.22	%
						June 30				December 31				June 30				March 31
PERIOD END BALANCES:						2022				2021				2021				2022
Assets						$	28,777,896			$	29,328,902			$	27,190,926			$	29,365,511
Earning assets							25,356,669				26,083,089				24,129,532				25,958,745
Loans & leases, net of unearned income							18,970,395				18,023,648				16,888,001				18,392,086
Loans held for sale							220,689				504,416				576,827				340,040
Investment securities							5,073,618				4,295,749				3,511,501				5,020,712
Total deposits							23,026,649				23,350,263				21,567,391				23,474,301
Shareholders’ equity							4,487,050				4,718,628				4,393,713				4,595,140
Note: (1) See information under the “Selected Financial Ratios” table for a reconciliation of non-GAAP measure.

UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
Consolidated Statements of Income		Three Months Ended												Six Months Ended
		June				June				March				June				June
		2022				2021				2022				2022				2021
Interest & Loan Fees Income (GAAP)		$	227,771			$	200,186			$	202,795			$	430,566			$	405,843
Tax equivalent adjustment			1,104				1,075				1,109				2,213				2,122
Interest & Fees Income (FTE) (non-GAAP)			228,875				201,261				203,904				432,779				407,965
Interest Expense			12,868				13,669				11,293				24,161				28,366
Net Interest Income (FTE) (non-GAAP)			216,007				187,592				192,611				408,618				379,599
Provision for Credit Losses			(1,807	)			(8,879	)			(3,410	)			(5,217	)			(8,736	)
Noninterest Income:
Fees from trust services			4,294				4,193				4,127				8,421				7,956
Fees from brokerage services			4,115				3,654				4,552				8,667				7,977
Fees from deposit services			10,830				9,396				10,148				20,978				18,292
Bankcard fees and merchant discounts			1,671				1,368				1,379				3,050				2,432
Other charges, commissions, and fees			785				775				759				1,544				1,534
Income from bank-owned life insurance			4,120				1,658				2,194				6,314				3,061
Income from mortgage banking activities			12,445				36,943				19,203				31,648				102,338
Mortgage loan servicing income			2,328				2,386				2,387				4,715				4,741
Net gains (losses) on investment securities			1,182				24				(251	)			931				2,633
Other noninterest income			1,838				2,467				1,527				3,365				4,480
Total Noninterest Income			43,608				62,864				46,025				89,633				155,444
Noninterest Expense:
Employee compensation			62,632				68,557				62,621				125,253				140,969
Employee benefits			12,047				14,470				12,851				24,898				29,920
Net occupancy			11,206				10,101				11,187				22,393				21,042
Data processing			7,549				6,956				7,371				14,920				13,982
Amortization of intangibles			1,379				1,467				1,379				2,758				2,933
OREO expense			46				496				182				228				4,055
Net (gains) on the sale of OREO properties			(454	)			(106	)			(33	)			(487	)			(33	)
Equipment expense			7,310				5,830				7,335				14,645				11,874
FDIC insurance expense			3,004				1,800				2,673				5,677				3,800
Mortgage loan servicing expense and impairment			1,783				3,599				1,643				3,426				6,776
Expense for reserve for unfunded loan commitments			5,899				873				5,237				11,136				1,646
Other noninterest expense			28,773				24,926				26,729				55,502				50,939
Total Noninterest Expense			141,174				138,969				139,175				280,349				287,903
Income Before Income Taxes (FTE) (non-GAAP)			120,248				120,366				102,871				223,119				255,876
Tax equivalent adjustment			1,104				1,075				1,109				2,213				2,122
Income Before Income Taxes (GAAP)			119,144				119,291				101,762				220,906				253,754
Taxes			23,531				24,455				20,098				43,629				52,020
Net Income		$	95,613			$	94,836			$	81,664			$	177,277			$	201,734
MEMO: Effective Tax Rate			19.75	%			20.50	%			19.75	%			19.75	%			20.50	%

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 2022				June 2021				June 30				December 31				June 30
		Q-T-D Average				Q-T-D Average				2022				2021				2021
Cash & Cash Equivalents		$	2,105,669			$	3,203,664			$	1,658,486			$	3,758,170			$	3,677,396
Securities Available for Sale			4,824,655				3,234,581				4,812,704				4,042,699				3,277,074
Less: Allowance for credit losses			0				0				0				0				0
Net available for sale securities			4,824,655				3,234,581				4,812,704				4,042,699				3,277,074
Securities Held to Maturity			1,020				1,020				1,020				1,020				1,020
Less: Allowance for credit losses			(19	)			(23	)			(18	)			(19	)			(31	)
Net held to maturity securities			1,001				997				1,002				1,001				989
Equity Securities			13,204				11,454				13,513				12,404				11,507
Other Investment Securities			246,312				221,093				246,399				239,645				221,931
Total Securities			5,085,172				3,468,125				5,073,618				4,295,749				3,511,501
Total Cash and Securities			7,190,841				6,671,789				6,732,104				8,053,919				7,188,897
Loans held for sale			263,039				618,306				220,689				504,416				576,827
Commercial Loans & Leases			14,210,173				13,068,138				14,136,614				13,809,735				12,723,654
Mortgage Loans			3,227,395				2,950,453				3,481,064				3,008,410				2,946,352
Consumer Loans			1,344,390				1,224,973				1,376,447				1,233,162				1,251,646
Gross Loans			18,781,958				17,243,564				18,994,125				18,051,307				16,921,652
Unearned income			(26,280	)			(36,437	)			(23,730	)			(27,659	)			(33,651	)
Loans & Leases, net of unearned income			18,755,678				17,207,127				18,970,395				18,023,648				16,888,001
Allowance for Loan & Lease Losses			(214,624	)			(231,422	)			(213,729	)			(216,016	)			(217,545	)
Net Loans			18,541,054				16,975,705				18,756,666				17,807,632				16,670,456
Mortgage Servicing Rights			22,644				22,385				22,593				23,144				22,540
Goodwill			1,889,186				1,810,045				1,888,889				1,886,494				1,810,040
Other Intangibles			22,519				24,875				21,655				24,413				23,990
Operating Lease Right-of-Use Asset			76,821				68,191				75,143				81,942				66,635
Other Real Estate Owned			13,943				18,740				13,847				14,823				18,474
Bank Owned Life Insurance			478,163				390,184				473,470				478,067				408,973
Other Assets			511,238				405,738				572,840				454,052				404,094
Total Assets		$	29,009,448			$	27,005,958			$	28,777,896			$	29,328,902			$	27,190,926
MEMO: Interest-earning Assets		$	25,626,411			$	23,967,740			$	25,356,669			$	26,083,089			$	24,129,532
Interest-bearing Deposits		$	14,136,707			$	13,219,572			$	13,995,710			$	14,369,716			$	13,283,937
Noninterest-bearing Deposits			9,038,947				8,227,147				9,030,939				8,980,547				8,283,454
Total Deposits			23,175,654				21,446,719				23,026,649				23,350,263				21,567,391
Short-term Borrowings			136,025				136,801				128,242				128,844				127,745
Long-term Borrowings			811,924				814,151				796,961				817,394				814,022
Total Borrowings			947,949				950,952				925,203				946,238				941,767
Operating Lease Liability			81,450				72,254				79,787				86,703				70,546
Other Liabilities			198,209				157,135				259,207				227,070				217,509
Total Liabilities			24,403,262				22,627,060				24,290,846				24,610,274				22,797,213
Preferred Equity			0				0				0				0				0
Common Equity			4,606,186				4,378,898				4,487,050				4,718,628				4,393,713
Total Shareholders' Equity			4,606,186				4,378,898				4,487,050				4,718,628				4,393,713
Total Liabilities & Equity		$	29,009,448			$	27,005,958			$	28,777,896			$	29,328,902			$	27,190,926
MEMO: Interest-bearing Liabilities		$	15,084,656			$	14,170,524			$	14,920,913			$	15,315,954			$	14,225,704

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:		2022				2021				2022				2022				2021
Earnings Per Share:
Basic		$	0.71			$	0.73			$	0.60			$	1.31			$	1.56
Diluted		$	0.71			$	0.73			$	0.60			$	1.30			$	1.56
Common Dividend Declared Per Share		$	0.36			$	0.35			$	0.36			$	0.72			$	0.70
High Common Stock Price		$	37.81			$	42.50			$	39.80			$	39.80			$	42.50
Low Common Stock Price		$	33.11			$	36.19			$	33.58			$	33.11			$	31.57
Average Shares Outstanding (Net of Treasury Stock):
Basic			134,623,061				128,750,851				136,058,328				135,336,729				128,693,616
Diluted			134,863,650				129,033,988				136,435,229				135,634,398				128,946,280
Common Dividends		$	48,544			$	45,268			$	49,266			$	97,810			$	90,522
Dividend Payout Ratio			50.77	%			47.73	%			60.33	%			55.17	%			44.87	%
										June 30				June 30				March 31
EOP Share Data:										2022				2021				2022
Book Value Per Share										$	33.34			$	34.01			$	33.77
Tangible Book Value Per Share (non-GAAP) (1)										$	19.14			$	19.81			$	19.72
52-week High Common Stock Price										$	39.80			$	42.50			$	42.50
Date										01/13/22				05/18/21				05/18/21
52-week Low Common Stock Price										$	31.74			$	20.57			$	31.74
Date										09/20/21				09/25/20				9/20/21
EOP Shares Outstanding (Net of Treasury Stock):											134,580,646				129,203,593				136,068,439
Memorandum Items:
EOP Employees (full-time equivalent)											2,988				3,012				3,090
Note:
(1) Tangible Book Value Per Share:
Total Shareholders' Equity (GAAP)										$	4,487,050			$	4,393,713			$	4,595,140
Less: Total Intangibles											(1,910,544	)			(1,834,030	)			(1,912,278	)
Tangible Equity (non-GAAP)										$	2,576,506			$	2,559,683			$	2,682,862
÷ EOP Shares Outstanding (Net of Treasury Stock)											134,580,646				129,203,593				136,068,439
Tangible Book Value Per Share (non-GAAP)										$	19.14			$	19.81			$	19.72

UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
		Three Months Ended										Three Months Ended										Three Months Ended
		June 2022										June 2021										March 2022
Selected Average Balances and Yields:		Average							Average			Average							Average			Average							Average
ASSETS:		Balance				Interest(1)			Rate(1)			Balance				Interest(1)			Rate(1)			Balance				Interest(1)			Rate(1)
Earning Assets:
Federal funds sold and securities purchased under agreements to resell and other short-term investments		$	1,737,146			$	4,841		1.12	%		$	2,905,604			$	1,757		0.24	%		$	3,028,826			$	2,329		0.31	%
Investment securities:
Taxable			4,665,307				24,558		2.11	%			3,114,902				13,846		1.78	%			4,264,820				17,505		1.64	%
Tax-exempt			419,865				2,794		2.66	%			353,223				2,331		2.64	%			444,542				2,688		2.42	%
Total securities			5,085,172				27,352		2.15	%			3,468,125				16,177		1.87	%			4,709,362				20,193		1.72	%
Loans and loans held for sale, net of unearned income (2)			19,018,717				196,682		4.15	%			17,825,433				183,327		4.12	%			18,530,232				181,382		3.96	%
Allowance for loan losses			(214,624	)									(231,422	)									(216,016	)
Net loans and loans held for sale			18,804,093						4.19	%			17,594,011						4.18	%			18,314,216						4.01	%
Total earning assets			25,626,411			$	228,875		3.58	%			23,967,740			$	201,261		3.37	%			26,052,404			$	203,904		3.16	%
Other assets			3,383,037										3,038,218										3,292,118
TOTAL ASSETS		$	29,009,448									$	27,005,958									$	29,344,522
LIABILITIES:
Interest-Bearing Liabilities:
Interest-bearing deposits		$	14,136,707			$	9,751		0.28	%		$	13,219,572			$	11,012		0.33	%		$	14,383,839			$	8,561		0.24	%
Short-term borrowings			136,025				237		0.70	%			136,801				182		0.54	%			133,987				181		0.55	%
Long-term borrowings			811,924				2,880		1.42	%			814,151				2,475		1.22	%			817,363				2,551		1.27	%
Total interest-bearing liabilities			15,084,656				12,868		0.34	%			14,170,524				13,669		0.39	%			15,335,189				11,293		0.30	%
Noninterest-bearing deposits			9,038,947										8,227,147										8,991,131
Accrued expenses and other liabilities			279,659										229,389										258,422
TOTAL LIABILITIES			24,403,262										22,627,060										24,584,742
SHAREHOLDERS’ EQUITY			4,606,186										4,378,898										4,759,780
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	29,009,448									$	27,005,958									$	29,344,522
NET INTEREST INCOME						$	216,007									$	187,592									$	192,611
INTEREST RATE SPREAD									3.24	%									2.98	%									2.86	%
NET INTEREST MARGIN									3.38	%									3.14	%									2.99	%
(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										Six Months Ended
		June 2022										June 2021
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		$	2,379,418			$	7,170		0.61	%		$	2,599,276			$	3,650		0.28	%
Investment securities:
Taxable			4,466,170				42,063		1.88	%			3,018,633				27,372		1.81	%
Tax-exempt			432,135				5,483		2.54	%			324,183				4,312		2.66	%
Total securities			4,898,305				47,546		1.94	%			3,342,816				31,684		1.90	%
Loans and loans held for sale, net of unearned income (2)			18,775,823				378,063		4.06	%			18,030,354				372,631		4.16	%
Allowance for loan losses			(215,316	)									(233,597	)
Net loans and loans held for sale			18,560,507						4.10	%			17,796,757						4.22	%
Total earning assets			25,838,230			$	432,779		3.37	%			23,738,849			$	407,965		3.46	%
Other assets			3,338,261										3,011,252
TOTAL ASSETS		$	29,176,491									$	26,750,101
LIABILITIES:
Interest-Bearing Liabilities:
Interest-bearing deposits		$	14,259,590			$	18,312		0.26	%		$	13,202,246			$	22,997		0.35	%
Short-term borrowings			135,012				418		0.62	%			139,463				360		0.52	%
Long-term borrowings			814,628				5,431		1.34	%			823,705				5,009		1.23	%
Total interest-bearing liabilities			15,209,230				24,161		0.32	%			14,165,414				28,366		0.40	%
Noninterest-bearing deposits			9,015,171										7,982,751
Accrued expenses and other liabilities			269,099										238,883
TOTAL LIABILITIES			24,493,500										22,387,048
SHAREHOLDERS’ EQUITY			4,682,991										4,363,053
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	29,176,491									$	26,750,101
NET INTEREST INCOME						$	408,618									$	379,599
INTEREST RATE SPREAD									3.05	%									3.06	%
NET INTEREST MARGIN									3.18	%									3.22	%
(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:		2022				2021				2022				2022				2021
Return on Average Assets			1.32	%			1.41	%			1.13	%			1.23	%			1.52	%
Return on Average Shareholders’ Equity			8.33	%			8.69	%			6.96	%			7.63	%			9.32	%
Return on Average Tangible Equity (non-GAAP) (1)			14.23	%			14.95	%			11.63	%			12.90	%			16.06	%
Efficiency Ratio			54.61	%			55.73	%			58.59	%			56.52	%			54.02	%
Note:
(1) Return on Average Tangible Equity:
(a) Net Income (GAAP)		$	95,613			$	94,836			$	81,664			$	177,277			$	201,734
(b) Number of Days			91				91				90				181				181
Average Total Shareholders' Equity (GAAP)		$	4,606,186			$	4,378,898			$	4,759,780			$	4,682,991			$	4,363,053
Less: Average Total Intangibles			(1,911,705	)			(1,834,920	)			(1,911,125	)			(1,911,416	)			(1,830,305	)
(c) Average Tangible Equity (non-GAAP)		$	2,694,481			$	2,543,978			$	2,848,655			$	2,771,575			$	2,532,748
Return on Average Tangible Equity (non-GAAP) [(a) / (b)] x 365 / (c)			14.23	%			14.95	%			11.63	%			12.90	%			16.06	%
						June 30				December 31				June 30				March 31
Selected Financial Ratios:						2022				2021				2021				2022
Loans & Leases, net of unearned income / Deposit Ratio							82.38	%			77.19	%			78.30	%			78.35	%
Allowance for Loan & Lease Losses/ Loans & Leases, net of unearned income							1.13	%			1.20	%			1.29	%			1.17	%
Allowance for Credit Losses (2)/ Loans & Leases, net of unearned income							1.35	%			1.37	%			1.41	%			1.37	%
Nonaccrual Loans / Loans & Leases, net of unearned income							0.15	%			0.20	%			0.24	%			0.19	%
90-Day Past Due Loans/ Loans & Leases, net of unearned income							0.09	%			0.10	%			0.08	%			0.08	%
Non-performing Loans/ Loans & Leases, net of unearned income							0.37	%			0.50	%			0.61	%			0.43	%
Non-performing Assets/ Total Assets							0.29	%			0.36	%			0.45	%			0.32	%
Primary Capital Ratio							16.34	%			16.79	%			16.89	%			16.36	%
Shareholders' Equity Ratio							15.59	%			16.09	%			16.16	%			15.65	%
Price / Book Ratio							1.05		x		1.05		x		1.07		x		1.03		x
Price / Earnings Ratio							12.37		x		12.82		x		12.42		x		14.57		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				June				March				June				June
Mortgage Banking Segment Data:		2022				2021				2022				2022				2021
Applications		$	1,159,102			$	2,029,846			$	1,696,504			$	2,855,606			$	4,660,272
Loans originated			955,152				1,658,128				1,006,363				1,961,516				3,568,747
Loans sold		$	1,072,623			$	1,877,772			$	1,170,124			$	2,242,748			$	3,695,656
Purchase money % of loans closed			86	%			69	%			73	%			79	%			55	%
Realized gain on sales and fees as a % of loans sold			2.40	%			2.90	%			2.98	%			2.59	%			3.52	%
Net interest income		$	2,870			$	2,871			$	2,317			$	5,187			$	5,521
Other income			21,468				39,764				23,397				44,865				107,271
Other expense			25,776				36,390				25,448				51,224				77,573
Income taxes			(285	)			1,280				57				(228	)			7,220
Net (loss) income		$	(1,153	)		$	4,965			$	209			$	(944	)		$	27,999
						June 30				June 30				December 31				March 31
Period End Mortgage Banking Segment Data:						2022				2021				2021				2022
Locked pipeline						$	206,246			$	660,258			$	448,889			$	412,809
Balance of loans serviced						$	3,534,607			$	3,674,023			$	3,698,998			$	3,623,207
Number of loans serviced							24,226				25,526				25,198				24,677
						June 30				June 30				December 31				March 31
Asset Quality Data:						2022				2021				2021				2022
EOP Non-Accrual Loans						$	28,386			$	41,182			$	36,028			$	34,093
EOP 90-Day Past Due Loans							16,443				14,135				18,879				15,179
EOP Restructured Loans (1)							25,504				47,271				35,856				30,582
Total EOP Non-performing Loans						$	70,333			$	102,588			$	90,763			$	79,854
EOP Other Real Estate Owned							13,847				18,474				14,823				13,641
Total EOP Non-performing Assets						$	84,180			$	121,062			$	105,586			$	93,495
		Three Months Ended												Six Months Ended
		June				June				March				June				June
Allowance for Loan & Lease Losses:		2022				2021				2022				2022				2021
Beginning Balance		$	214,594			$	231,582			$	216,016			$	216,016			$	235,830
Initial allowance for acquired PCD loans			0				0				0				0				0
Gross Charge-offs			(2,119	)			(6,131	)			(1,476	)			(3,595	)			(13,088	)
Recoveries			3,060				910				3,456				6,516				3,325
Net Recoveries (Charge-offs)			941				(5,221	)			1,980				2,921				(9,763	)
Provision for Loan & Lease Losses			(1,806	)			(8,816	)			(3,402	)			(5,208	)			(8,522	)
Ending Balance		$	213,729			$	217,545			$	214,594			$	213,729			$	217,545
Reserve for lending-related commitments			42,579				20,897				36,679				42,579				20,897
Allowance for Credit Losses (2)		$	256,308			$	238,442			$	251,273			$	256,308			$	238,442
Notes:
(1) Restructured loans with an aggregate balance of $11,298, $32,471, $22,421, and $13,568 at June 30, 2022, June 30, 2021, December 31, 2021, and March 31, 2022 respectively, were on nonaccrual status, but are not included in “EOP Non-Accrual Loans” above. Restructured loans with an aggregate balance of $3,162, $46 and $102 at June 30, 2022, June 30, 2021 and December 31, 2021, respectively, were 90 days past due, but not included in "EOP Non-Accrual Loans" above.
(2) Includes allowances for loan losses and lending-related commitments.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220728005183/en/

W. Mark Tatterson

Chief Financial Officer

(800) 445-1347 ext. 8716

Source: United Bankshares, Inc.

FAQ

What were United Bankshares' earnings for Q2 2022?

United Bankshares reported earnings of $95.6 million, or $0.71 per diluted share for Q2 2022.

How did loan growth perform in Q2 2022 for UBSI?

United Bankshares experienced annualized loan growth of 15% in Q2 2022.

What is the current net interest margin for UBSI?

The net interest margin for United Bankshares in Q2 2022 was 3.38%.

How has United Bankshares' noninterest income changed in Q2 2022?

Noninterest income decreased by 5%, equating to a drop of $2.4 million from Q1 2022.

What was the status of non-performing loans for UBSI in Q2 2022?

Non-performing loans stood at 0.37% of loans and leases at June 30, 2022.