United Bankshares, Inc. Announces Earnings for the Third Quarter and First Nine Months Of 2021

Rhea-AI Summary

United Bankshares reported third quarter earnings of $92.2 million or $0.71 per diluted share, down from $103.8 million or $0.80 for the same period in 2020. For the first nine months, earnings rose to $293.9 million, or $2.27 per diluted share, compared to $196.7 million, or $1.68 in 2020. Credit quality remains strong with nonperforming assets at 0.39% of total assets. The company has completed all necessary regulatory approvals for its merger with Community Bankers Trust, expected to close in Q4 2021.

Positive

• Earnings for the first nine months of 2021 increased by 49% year-over-year.
• Credit quality metrics improved, with nonperforming assets decreasing by 31% since December 31, 2020.
• Annualized return on average assets for the first nine months was 1.46%, above the previous year's 1.12%.

Negative

• Third quarter earnings decreased by 11.5% compared to the same quarter in 2020.
• Net interest income fell by 2% year-over-year.
• Noninterest income for the third quarter dropped by 49% largely due to decreased mortgage banking activities.

WASHINGTON & CHARLESTON, W. Va.--(BUSINESS WIRE)-- United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today reported earnings for the third quarter and first nine months of 2021. Earnings for the third quarter of 2021 were $92.2 million, or $0.71 per diluted share, as compared to earnings of $103.8 million, or $0.80 per diluted share, for the third quarter of 2020. Earnings for the first nine months of 2021 were $293.9 million, or $2.27 per diluted share, as compared to earnings of $196.7 million, or $1.68 per diluted share, for the first nine months of 2020.

Third quarter 2021 results produced annualized returns on average assets, average equity and average tangible equity, a non-GAAP measure, of 1.33%, 8.23% and 14.03%, respectively, compared to annualized returns on average assets, average equity and average tangible equity of 1.56%, 9.68% and 16.94%, respectively, for the third quarter of 2020. For the first nine months of 2021, United’s annualized returns on average assets, average equity and average tangible equity were 1.46%, 8.95% and 15.36%, respectively, compared to annualized returns on average assets, average equity and average tangible equity of 1.12%, 6.85% and 12.19%, respectively, for the first nine months of 2020.

“Our earnings continued to be strong in the third quarter of 2021 as we earned net income of $92.2 million, diluted earnings per share of $0.71 and delivered an annualized return on average assets of 1.33%,” stated Richard M. Adams, United’s Chairman of the Board and Chief Executive Officer. “Additionally, credit quality metrics remain strong with nonperforming assets decreasing approximately 31% from December 31, 2020 to $107.0 million, representing 0.39% of total assets, at September 30, 2021.”

United previously announced that it entered into a definitive merger agreement with Community Bankers Trust Corporation (“Community Bankers Trust”). Under the merger agreement, United will acquire 100% of the outstanding shares of Community Bankers Trust in exchange for common shares of United. The combined organization will be approximately $29 billion in assets with nearly 250 locations in some of the most desirable banking markets in the nation. All requisite regulatory approvals for the merger have been received from the Board of Governors of the Federal Reserve System and from the Virginia State Corporation Commission. The merger is expected to close in the fourth quarter of 2021, subject to satisfaction of customary closing conditions including approval by the shareholders of Community Bankers Trust.

As a result of the acquisition of Carolina Financial Corporation (“Carolina Financial”) on May 1, 2020, the first nine months of 2021 reflected higher average balances, income, and expense as compared to the first nine months of 2020. In addition, the third quarter and first nine months of 2020 included merger-related expenses of $5.7 million and $53.7 million, respectively, associated with the acquisition of Carolina Financial compared to $845 thousand and $1.0 million of merger-related expenses incurred in the third quarter and first nine months of 2021, respectively, related to the announced Community Bankers Trust acquisition.

Net Interest Income and Net Interest Margin

Net interest income for the third quarter of 2021 was $181.6 million, which was a decrease of $4.1 million, or 2%, from the third quarter of 2020. 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 third quarter of 2021 decreased $4.1 million, or 2%, from the third quarter of 2020 to $182.6 million. The decrease in net interest income and tax-equivalent net interest income was primarily due to a change in the mix of interest earning assets. A decrease in interest income due to the mix of interest earning assets as well as lower loan accretion on acquired loans was partially offset by lower interest expense on deposits and borrowings reflecting a decline in market interest rates and higher loan fee income from the Paycheck Protection Program (“PPP”). The net interest spread for the third quarter of 2021 decreased 10 basis points from the third quarter of 2020 due to a 41 basis point decrease in the average yield on earning assets partially offset by a 31 basis point decrease in the average cost of funds. Average earning assets for the third quarter of 2021 increased $937.4 million, or 4%, from the third quarter of 2020 due to a $1.9 billion increase in average short-term investments and a $563.2 million increase in average investment securities, partially offset by a $1.5 billion decrease in average net loans and loans held for sale mainly driven by a decline in PPP loan balances. Loan accretion on acquired loans was $8.2 million and $11.7 million for the third quarter of 2021 and 2020, respectively, a decrease of $3.5 million. Net PPP loan fee income of $7.8 million was recognized in the third quarter of 2021 driven primarily by loan forgiveness, as compared to $4.8 million for the third quarter of 2020. The net interest margin of 2.98% for the third quarter of 2021 was a decrease of 20 basis points from the net interest margin of 3.18% for the third quarter of 2020.

Net interest income for the first nine months of 2021 was $559.1 million, which was an increase of $61.3 million, or 12%, from the first nine months of 2020. Tax-equivalent net interest income for the first nine months of 2021 was $562.2 million, an increase of $61.6 million, or 12%, from the first nine months of 2020. The increase in net interest income and tax-equivalent net interest income was primarily due to an increase in average earning assets from the Carolina Financial acquisition and PPP loans as well as lower interest expense on deposits and borrowings. Average earning assets for the first nine months of 2021 increased $3.1 billion, or 15%, from the first nine months of 2020 due to a $1.6 billion increase in average short-term investments, a $989.3 million increase in average net loans and loans held for sale and a $558.5 million increase in average investment securities. The net interest spread for the first nine months of 2021 increased 11 basis points from the first nine months of 2020 due to a 54 basis point decrease in the average cost of funds partially offset by a 43 basis point decrease in the average yield on earning assets. Net PPP loan fee income of $28.2 million was recognized in the first nine months of 2021 driven primarily by loan forgiveness, as compared to $9.3 million for the first nine months of 2020. Loan accretion on acquired loans was $27.6 million and $30.8 million for the first nine months of 2021 and 2020, respectively, a decrease of $3.2 million. The net interest margin of 3.14% for the first nine months of 2021 was a decrease of 7 basis points from the net interest margin of 3.21% for the first nine months of 2020.

On a linked-quarter basis, net interest income for the third quarter of 2021 decreased $4.9 million, or 3%, from the second quarter of 2021. Tax-equivalent net interest income for the third quarter of 2021 decreased $5.0 million, or 3%, from the second quarter of 2021. The net interest spread for the third quarter of 2021 of 2.83% decreased 15 basis points from the second quarter of 2021 due to a 19 basis point decrease in the average yield on earning assets partially offset by a 4 basis point decrease in the average cost of funds. Average earning assets increased approximately $394.6 million, or 2%, from the second quarter of 2021 due to increases in average short-term investments of $919.7 million and average investment securities of $111.6 million partially offset by a decrease in average net loans and loans held for sale of $636.6 million mainly driven by a decline in PPP loan balances. Net PPP loan fee income for the third quarter of 2021 decreased $1.2 million from the second quarter of 2021 to $7.8 million. Loan accretion on acquired loans decreased $1.5 million from the second quarter of 2021 to $8.2 million for the third quarter of 2021. The net interest margin of 2.98% for the third quarter of 2021 was a decrease of 16 basis points from the net interest margin of 3.14% for the second quarter of 2021.

Credit Quality

United’s asset quality continues to be sound. At September 30, 2021, nonperforming loans were $90.3 million, or 0.54% of loans & leases, net of unearned income, down from $132.2 million, or 0.75% of loans & leases, net of unearned income, at December 31, 2020. Total nonperforming assets of $107.0 million, including other real estate owned (“OREO”) of $16.7 million at September 30, 2021, represented 0.39% of total assets as compared to nonperforming assets of $154.8 million, including OREO of $22.6 million, or 0.59% of total assets at December 31, 2020.

The provision for credit losses was a net benefit of $7.8 million and $16.6 million for the third quarter and first nine months of 2021, respectively, while the provision for credit losses was an expense of $16.8 million and $89.8 million, respectively, for the third quarter and first nine months of 2020. The first nine months of 2020 included a provision for loan losses of $29.0 million recorded on purchased non-credit deteriorated (“non-PCD”) loans from Carolina Financial. The decrease in the provision in relation to the prior year quarter and first nine months of 2020 was also driven by the impact of better performance trends within the loan portfolio and improvements in the reasonable and supportable forecasts of future macroeconomic conditions on the estimate of expected credit losses under CECL. On a linked-quarter basis, the provision for credit losses for the third quarter of 2021 was a net benefit of $7.8 million compared to a net benefit of $8.9 million for the second quarter of 2021.

As of September 30, 2021, the allowance for loan losses was $210.9 million, or 1.26% of loans & leases, net of unearned income, as compared to $235.8 million, or 1.34% of loans & leases, net of unearned income, at December 31, 2020. Net recoveries were $1.2 million for the third quarter of 2021 compared to net charge-offs of $5.6 million for the third quarter of 2020. Net charge-offs were $8.6 million for the first nine months of 2021 compared to net charge-offs of $16.7 million for the first nine months of 2020. Annualized net (recoveries) charge-offs as a percentage of average loans & leases, net of unearned income were (0.03)% and 0.07% for the third quarter and first nine months of 2021, respectively, compared to annualized net charge-offs of 0.12% and 0.13% for the third quarter and first nine months of 2020. Net charge-offs were $5.2 million for the second quarter of 2021.

Noninterest Income

Noninterest income for the third quarter of 2021 was $68.6 million, which was a decrease of $66.8 million, or 49%, from the third quarter of 2020 primarily driven by a $67.4 million decrease in income from mortgage banking activities due primarily to lower mortgage loan origination and sale volume and the mark-to-market impact of a declining locked pipeline. The third quarter of 2020 also included a $2.2 million gain on the sale of a bank premises. Partially offsetting the decreases in noninterest income were increases in fees from brokerage services of $817 thousand, fees from trust services of $695 thousand and fees from deposit services of $568 thousand.

Noninterest income for the first nine months of 2021 was $224.0 million, which was a decrease of $36.6 million, or 14%, from the first nine months of 2020. The decrease was driven primarily by a $51.0 million decrease in income from mortgage banking activities due primarily to the mark-to-market impact of a declining locked pipeline although originations and sales of mortgage loans in the secondary market increased. Mortgage loan servicing income for the first nine months of 2021 was $7.2 million compared to $3.9 million for the first nine months of 2020 as a result of the Carolina Financial acquisition. The first nine months of 2021 also included fees from deposit services of $28.2 million, an increase of $2.8 million from the first nine months of 2020, fees from trust services of $12.2 million, an increase of $1.9 million from the first nine months of 2020 and fees from brokerage services of $11.9 million, an increase of $3.2 million from the first nine months of 2020.

On a linked-quarter basis, noninterest income for the third quarter of 2021 increased $5.8 million, or 9%, from the second quarter of 2021 primarily due to an increase of $5.1 million in income from mortgage banking activities due primarily to a higher loan pipeline valuation. Income from bank-owned life insurance (BOLI) for the third quarter of 2021 was $2.6 million, an increase of $898 thousand from the linked quarter primarily due to the recognition of death benefits. Fees from deposit services for the third quarter of 2021 were $9.9 million, an increase of $492 thousand from the linked quarter.

Noninterest Expense

Noninterest expense for the third quarter of 2021 was $142.3 million, a decrease of $29.3 million, or 17%, from the third quarter of 2020, primarily due to a decrease of $17.0 million in employee compensation due to lower employee incentives and commissions related to mortgage banking production as well as a lower employee headcount. The third quarter of 2020 also included $10.4 million in prepayment penalties on the early payoff of three long-term FHLB advances.

Noninterest expense for the first nine months of 2021 was $430.2 million, an increase of $8.1 million, or 2%, from the first nine months of 2020. Employee compensation increased $10.8 million from the first nine months of 2020 primarily due to the Carolina Financial acquisition. Additionally, noninterest expense increased from the first nine months of 2020 due to increases of $6.3 million in employee benefits, $4.7 million in equipment expense, $4.1 million in mortgage loan servicing expense and impairment, $1.7 million in OREO expense and $1.1 million in net occupancy expense. The increase in OREO expense was due mainly to declines in the fair value of OREO properties. The increases in employee benefits, mortgage loan servicing expense and impairment, equipment expense and net occupancy expense were mainly from the Carolina Financial acquisition. Partially offsetting the increases in noninterest expense was a decrease in data processing expense of $7.5 million, primarily due to a penalty of $9.7 million to terminate Carolina Financial’s data processing contract in the second quarter of 2020. The first nine months of 2020 also included $10.4 million in prepayment penalties on the early payoff of FHLB advances.

On a linked-quarter basis, noninterest expense for the third quarter of 2021 increased $3.3 million, or 2%, from the second quarter of 2021 primarily due to an increase of $4.6 million in other expense. Within other expense, the largest drivers of the variance were increases in the expense for the reserve for unfunded commitments of $3.4 million primarily due to an increase in outstanding loan commitments and merger-related expenses of $662 thousand associated with the announced Community Bankers Trust acquisition. Partially offsetting the increases in other expense were decreases in employee compensation of $1.1 million and employee benefits of $1.3 million, primarily due to lower commissions, and associated taxes, related to mortgage banking production.

Income Tax Expense

For the third quarter of 2021, income tax expense was $23.6 million as compared to $29.0 million for the third quarter of 2020 primarily due to lower earnings and a lower effective tax rate. For the first nine months of 2021, income tax expense was $75.6 million as compared to $49.9 million for the first nine months of 2020 primarily due to higher earnings. On a linked-quarter basis, income tax expense decreased $851 thousand primarily due to lower earnings and a slightly lower effective tax rate. United’s effective tax rate was 20.4% for the third quarter of 2021, 21.8% for the third quarter of 2020 and 20.5% for the second quarter of 2021. For the first nine months of 2021 and 2020, United’s effective tax rate was 20.5% and 20.2%, respectively.

Regulatory Capital

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 15.7% at September 30, 2021, while estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 13.5%, 13.5% and 10.4%, respectively. The September 30, 2021 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%.

About United Bankshares, Inc.

As of September 30, 2021, United had consolidated assets of approximately $27.5 billion. United is the parent company of United Bank which has 222 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 September 30, 2021 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 September 30, 2021 and will adjust amounts preliminarily reported, if necessary.

Use of non-GAAP Financial Measures

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

Specifically, this press release contains certain references to financial measures identified as tax-equivalent (FTE) net interest income, tangible equity, return on 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, reform of LIBOR; the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations, including those involving the OCC, 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 Community Bankers Trust, including the successful integration of operations of Community Bankers Trust; 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, 2020, 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										Nine Months Ended
EARNINGS SUMMARY:		September 2021				September 2020						September 2021				September 2020
Interest income		$	194,080			$		210,269				$	599,923			$	589,468
Interest expense			12,501					24,605					40,867				91,684
Net interest income			181,579					185,664					559,056				497,784
Provision for credit losses			(7,829	)				16,781					(16,565	)			89,811
Noninterest income			68,624					135,468					224,043				260,664
Noninterest expense			142,276					171,593					430,154				422,100
Income before income taxes			115,756					132,758					369,510				246,537
Income taxes			23,604					28,974					75,624				49,884
Net income		$	92,152			$		103,784				$	293,886			$	196,653
PER COMMON SHARE:
Net income:
Basic		$	0.71			$		0.80				$	2.28			$	1.68
Diluted			0.71					0.80					2.27				1.68
Cash dividends		$	0.35			$		0.35					1.05				1.05
Book value													34.29				32.89
Closing market price												$	36.38			$	21.47
Common shares outstanding:
Actual at period end, net of treasury shares													129,203,774				129,762,348
Weighted average-basic			128,762,815					129,373,154					128,716,450				116,876,402
Weighted average-diluted			128,960,220					129,454,966					128,934,282				116,944,594
FINANCIAL RATIOS:
Return on average assets			1.33	%				1.56	%				1.46	%			1.12	%
Return on average shareholders’ equity			8.23	%				9.68	%				8.95	%			6.85	%
Return on average tangible equity (non-GAAP)(1)			14.03	%				16.94	%				15.36	%			12.19	%
Average equity to average assets			16.18	%				16.14	%				16.27	%			16.34	%
Net interest margin			2.98	%				3.18	%				3.14	%			3.21	%
PERIOD END BALANCES:		September 30 2021				September 30 2020						December 31 2020				June 30 2021
Assets		$	27,507,517			$		25,931,308				$	26,184,247			$	27,190,926
Earning assets			24,415,973					22,903,067					23,172,403				24,129,532
Loans & leases, net of unearned income			16,743,629					17,930,231					17,591,413				16,888,001
Loans held for sale			493,299					812,084					718,937				576,827
Investment securities			3,646,065					3,007,263					3,186,184				3,511,501
Total deposits			21,822,609					20,251,539					20,585,160				21,567,391
Shareholders’ equity			4,430,766					4,267,441					4,297,620				4,393,713
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																Nine Months Ended
		September				September				June				March				September				September
		2021				2020				2021				2021				2021				2020
Interest & Loan Fees Income (GAAP)		$	194,080			$	210,269			$	200,186			$	205,657			$	599,923			$	589,468
Tax equivalent adjustment			1,059				1,046				1,075				1,047				3,181				2,846
Interest & Fees Income (FTE) (non-GAAP)			195,139				211,315				201,261				206,704				603,104				592,314
Interest Expense			12,501				24,605				13,669				14,697				40,867				91,684
Net Interest Income (FTE) (non-GAAP)			182,638				186,710				187,592				192,007				562,237				500,630
Provision for Credit Losses			(7,829	)			16,781				(8,879	)			143				(16,565	)			89,811
Noninterest Income:
Fees from trust services			4,269				3,574				4,193				3,763				12,225				10,318
Fees from brokerage services			3,883				3,066				3,654				4,323				11,860				8,633
Fees from deposit services			9,888				9,320				9,396				8,896				28,180				25,332
Bankcard fees and merchant discounts			1,473				1,226				1,368				1,064				3,905				2,937
Other charges, commissions, and fees			703				715				775				759				2,237				1,843
Income from bank-owned life insurance			2,556				2,059				1,658				1,403				5,617				5,738
Income from mortgage banking activities			42,012				109,457				36,943				65,395				144,350				195,301
Mortgage loan servicing income			2,429				2,345				2,386				2,355				7,170				3,879
Net gain on the sale of bank premises			0				2,229				0				0				0				2,229
Net gains on investment securities			82				860				24				2,609				2,715				2,566
Other noninterest income			1,329				617				2,449				2,006				5,784				1,888
Total Noninterest Income			68,624				135,468				62,846				92,573				224,043				260,664
Noninterest Expense:
Employee compensation			67,459				84,455				68,557				72,412				208,428				197,660
Employee benefits			13,132				13,202				14,470				15,450				43,052				36,767
Net occupancy			10,339				10,944				10,101				10,941				31,381				30,324
Data processing			6,612				6,708				6,956				7,026				20,594				28,140
Amortization of intangibles			1,466				1,691				1,467				1,466				4,399				4,914
OREO expense			387				1,166				372				3,625				4,384				2,679
Equipment expense			7,286				5,616				5,830				6,044				19,160				14,465
FDIC insurance expense			1,920				2,700				1,800				2,000				5,720				7,882
Mortgage loan servicing expense and impairment			3,253				3,301				3,599				3,177				10,029				5,949
Prepayment penalties on FHLB borrowings			0				10,385				0				0				0				10,385
Other noninterest expense			30,422				31,425				25,799				26,786				83,007				82,935
Total Noninterest Expense			142,276				171,593				138,951				148,927				430,154				422,100
Income Before Income Taxes (FTE) (non-GAAP)			116,815				133,804				120,366				135,510				372,691				249,383
Tax equivalent adjustment			1,059				1,046				1,075				1,047				3,181				2,846
Income Before Income Taxes (GAAP)			115,756				132,758				119,291				134,463				369,510				246,537
Taxes			23,604				28,974				24,455				27,565				75,624				49,884
Net Income		$	92,152			$	103,784			$	94,836			$	106,898			$	293,886			$	196,653
MEMO: Effective Tax Rate			20.39	%			21.82	%			20.50	%			20.50	%			20.47	%			20.23	%

UNITED BANKSHARES, INC. AND SUBSIDIARIES Washington, D.C. and Charleston, WV Stock Symbol: UBSI (In Thousands Except for Per Share Data)
Consolidated Balance Sheets
		September 2021				September 2020				September 30				June 30				December 31				September 30
		Q-T-D Average				Q-T-D Average				2021				2021				2020				2020
Cash & Cash Equivalents		$	4,132,702			$	2,227,314			$	4,033,561			$	3,677,396			$	2,209,068			$	1,656,533
Securities Available for Sale			3,344,196				2,751,913				3,409,984				3,277,074				2,953,359				2,777,802
Less: Allowance for credit losses			0				0				0				0				0				0
Net available for sale securities			3,344,196				2,751,913				3,409,984				3,277,074				2,953,359				2,777,802
Securities Held to Maturity			1,020				1,235				1,020				1,020				1,235				1,235
Less: Allowance for credit losses			(31	)			(14	)			(27	)			(31	)			(23	)			(21	)
Net held to maturity securities			989				1,221				993				989				1,212				1,214
Equity Securities			11,735				10,033				11,984				11,507				10,718				10,255
Other Investment Securities			222,765				253,302				223,104				221,931				220,895				217,992
Total Securities			3,579,685				3,016,469				3,646,065				3,511,501				3,186,184				3,007,263
Total Cash and Securities			7,712,387				5,243,783				7,679,626				7,188,897				5,395,252				4,663,796
Loans held for sale			445,983				668,874				493,299				576,827				718,937				812,084
Commercial Loans & Leases			12,621,706				13,224,385				12,657,238				12,723,654				13,165,497				13,377,091
Mortgage Loans			2,916,877				3,542,829				2,884,542				2,946,352				3,197,274				3,345,048
Consumer Loans			1,221,578				1,258,803				1,229,552				1,251,646				1,259,812				1,245,381
Gross Loans			16,760,161				18,026,017				16,771,332				16,921,652				17,622,583				17,967,520
Unearned income			(31,288	)			(39,391	)			(27,703	)			(33,651	)			(31,170	)			(37,289	)
Loans & Leases, net of unearned income			16,728,873				17,986,626				16,743,629				16,888,001				17,591,413				17,930,231
Allowance for Loan & Leases Losses			(217,472	)			(214,870	)			(210,891	)			(217,545	)			(235,830	)			(225,812	)
Net Loans			16,511,401				17,771,756				16,532,738				16,670,456				17,355,583				17,704,419
Mortgage Servicing Rights			22,479				20,462				22,836				22,540				20,955				20,413
Goodwill			1,810,040				1,795,682				1,810,040				1,810,040				1,796,848				1,794,886
Other Intangibles			23,409				30,375				22,524				23,990				26,923				28,243
Operating Lease Right-of-Use Asset			68,373				70,920				75,593				66,635				69,520				72,789
Other Real Estate Owned			17,618				28,592				16,696				18,474				22,595				25,696
Other Assets			826,020				785,179				854,165				813,067				777,634				808,982
Total Assets		$	27,437,710			$	26,415,623			$	27,507,517			$	27,190,926			$	26,184,247			$	25,931,308
MEMO: Interest-earning Assets		$	24,362,333			$	23,424,890			$	24,415,973			$	24,129,532			$	23,172,403			$	22,903,067
Interest-bearing Deposits		$	13,361,016			$	12,951,290			$	13,332,418			$	13,283,937			$	13,179,900			$	12,946,792
Noninterest-bearing Deposits			8,471,744				7,178,769				8,490,191				8,283,454				7,405,260				7,304,747
Total Deposits			21,832,760				20,130,059				21,822,609				21,567,391				20,585,160				20,251,539
Short-term Borrowings			123,526				156,502				123,018				127,745				142,300				148,357
Long-term Borrowings			813,976				1,616,647				813,851				814,022				864,369				924,674
Total Borrowings			937,502				1,773,149				936,869				941,767				1,006,669				1,073,031
Operating Lease Liability			72,389				74,640				80,518				70,546				73,213				76,604
Other Liabilities			154,952				174,664				236,755				217,509				221,585				262,693
Total Liabilities			22,997,603				22,152,512				23,076,751				22,797,213				21,886,627				21,663,867
Preferred Equity			0				0				0				0				0				0
Common Equity			4,440,107				4,263,111				4,430,766				4,393,713				4,297,620				4,267,441
Total Shareholders' Equity			4,440,107				4,263,111				4,430,766				4,393,713				4,297,620				4,267,441
Total Liabilities & Equity		$	27,437,710			$	26,415,623			$	27,507,517			$	27,190,926			$	26,184,247			$	25,931,308
MEMO: Interest-bearing Liabilities		$	14,298,518			$	14,724,439			$	14,269,287			$	14,225,704			$	14,186,569			$	14,019,823

UNITED BANKSHARES, INC. AND SUBSIDIARIES Washington, D.C. and Charleston, WV Stock Symbol: UBSI (In Thousands Except for Per Share Data)
		Three Months Ended																Nine Months Ended
		September				September				June				March				September				September
Quarterly/Year-to-Date Share Data:		2021				2020				2021				2021				2021				2020
Earnings Per Share:
Basic		$	0.71			$	0.80			$	0.73			$	0.83			$	2.28			$	1.68
Diluted		$	0.71			$	0.80			$	0.73			$	0.83			$	2.27			$	1.68
Common Dividend Declared Per Share		$	0.35			$	0.35			$	0.35			$	0.35			$	1.05			$	1.05
High Common Stock Price		$	37.12			$	30.07			$	42.50			$	41.61			$	42.50			$	39.07
Low Common Stock Price		$	31.74			$	20.57			$	36.19			$	31.57			$	31.57			$	19.67
Average Shares Outstanding (Net of Treasury Stock):
Basic			128,762,815				129,373,154				128,750,851				128,635,740				128,716,450				116,876,402
Diluted			128,960,220				129,454,966				129,033,988				128,890,861				128,934,282				116,944,594
Common Dividends		$	45,271			$	45,414			$	45,268			$	45,254			$	135,793			$	126,434
Dividend Payout Ratio			49.13	%			43.76	%			47.73	%			42.33	%			46.21	%			64.29	%
										September 30				September 30				June 30				March 31
EOP Share Data:										2021				2020				2021				2021
Book Value Per Share										$	34.29			$	32.89			$	34.01			$	33.54
Tangible Book Value Per Share (non-GAAP) (1)										$	20.11			$	18.84			$	19.81			$	19.38
52-week High Common Stock Price										$	42.50			$	40.70			$	42.50			$	41.61
Date										05/18/21				11/05/19				05/18/21				03/18/21
52-week Low Common Stock Price										$	21.19			$	19.67			$	20.57			$	20.57
Date										10/01/20				03/23/20				09/25/20				09/25/20
EOP Shares Outstanding (Net of Treasury Stock):											129,203,774				129,762,348				129,203,593				129,175,800
Memorandum Items:
EOP Employees (full-time equivalent)											2,986				3,137				3,012				3,033
Note:
(1) Tangible Book Value Per Share:
Total Shareholders' Equity (GAAP)										$	4,430,766			$	4,267,441			$	4,393,713			$	4,332,698
Less: Total Intangibles											(1,832,564	)			(1,823,129	)			(1,834,030	)			(1,829,495	)
Tangible Equity (non-GAAP)										$	2,598,202			$	2,444,312			$	2,559,683			$	2,503,203
÷ EOP Shares Outstanding (Net of Treasury Stock)											129,203,774				129,762,348				129,203,593				129,175,800
Tangible Book Value Per Share (non-GAAP)										$	20.11			$	18.84			$	19.81			$	19.38

UNITED BANKSHARES, INC. AND SUBSIDIARIES Washington, D.C. and Charleston, WV Stock Symbol: UBSI (In Thousands Except for Per Share Data)
		Three Months Ended															Nine Months Ended
		September				September				June				March				September				September
		2021				2020				2021				2021				2021				2020
Selected Yields and Net Interest Margin:
Net Loans and Loans held for sale			4.15	%			4.17	%			4.18	%			4.26	%			4.20	%			4.30	%
Investment Securities			1.71	%			2.17	%			1.87	%			1.93	%			1.83	%			2.42	%
Money Market Investments/FFS			0.26	%			0.42	%			0.24	%			0.34	%			0.28	%			0.75	%
Average Earning Assets Yield			3.18	%			3.59	%			3.37	%			3.56	%			3.37	%			3.80	%
Interest-bearing Deposits			0.29	%			0.54	%			0.33	%			0.37	%			0.33	%			0.76	%
Short-term Borrowings			0.54	%			0.44	%			0.54	%			0.51	%			0.53	%			0.75	%
Long-term Borrowings			1.23	%			1.65	%			1.22	%			1.23	%			1.23	%			1.86	%
Average Liability Costs			0.35	%			0.66	%			0.39	%			0.42	%			0.38	%			0.92	%
Net Interest Spread			2.83	%			2.93	%			2.98	%			3.14	%			2.99	%			2.88	%
Net Interest Margin			2.98	%			3.18	%			3.14	%			3.30	%			3.14	%			3.21	%
Selected Financial Ratios:
Return on Average Assets			1.33	%			1.56	%			1.41	%			1.64	%			1.46	%			1.12	%
Return on Average Shareholders’ Equity			8.23	%			9.68	%			8.69	%			9.97	%			8.95	%			6.85	%
Return on Average Tangible Equity (non-GAAP) (1)			14.03	%			16.94	%			14.95	%			17.20	%			15.36	%			12.19	%
Efficiency Ratio			56.86	%			53.43	%			55.72	%			52.53	%			54.93	%			55.65	%
Note:
(1) Return on Average Tangible Equity:
(a) Net Income (GAAP)		$	92,152			$	103,784			$	94,836			$	106,898			$	293,886			$	196,653
(b) Number of Days			92				92				91				90				273				274
Average Total Shareholders' Equity (GAAP)		$	4,440,107			$	4,263,111			$	4,378,898			$	4,346,750			$	4,389,087			$	3,835,617
Less: Average Total Intangibles			(1,833,449	)			(1,826,057	)			(1,834,920	)			(1,825,639	)			(1,831,364	)			(1,681,202	)
(c) Average Tangible Equity (non-GAAP)		$	2,606,658			$	2,437,054			$	2,543,978			$	2,521,111			$	2,557,723			$	2,154,415
Return on Average Tangible Equity (non-GAAP) [(a) / (b)] x 365 or 366 / (c)			14.03	%			16.94	%			14.95	%			17.20	%			15.36	%			12.19	%
Selected Financial Ratios:						September 30 2021				December 31 2020				September 30 2020				June 30 2021				March 31 2021
Loans & Leases, net of unearned income / Deposit Ratio							76.73	%			85.46	%			88.54	%			78.30	%			81.16	%
Allowance for Loan & Lease Losses/ Loans & Leases, net of unearned income							1.26	%			1.34	%			1.26	%			1.29	%			1.33	%
Allowance for Credit Losses (2)/ Loans & Leases, net of unearned income							1.41	%			1.45	%			1.35	%			1.41	%			1.45	%
Nonaccrual Loans / Loans & Leases, net of unearned income							0.23	%			0.36	%			0.40	%			0.24	%			0.28	%
90-Day Past Due Loans/ Loans & Leases, net of unearned income							0.09	%			0.08	%			0.07	%			0.08	%			0.09	%
Non-performing Loans/ Loans & Leases, net of unearned income							0.54	%			0.75	%			0.85	%			0.61	%			0.67	%
Non-performing Assets/ Total Assets							0.39	%			0.59	%			0.69	%			0.45	%			0.50	%
Primary Capital Ratio							16.82	%			17.22	%			17.23	%			16.89	%			16.80	%
Shareholders' Equity Ratio							16.11	%			16.41	%			16.46	%			16.16	%			16.03	%
Price / Book Ratio							1.06		x		0.97		x		0.65		x		1.07		x		1.15		x
Price / Earnings Ratio							12.76		x		11.35		x		6.70		x		12.42		x		11.63		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																Nine Months Ended
		September				September				June				March				September				September
Mortgage Banking Segment Data:		2021				2020				2021				2021				2021				2020
Applications		$	1,893,870			$	3,460,687			$	2,029,846			$	2,630,426			$	6,554,142			$	7,703,695
Loans originated			1,385,871				2,071,717				1,658,128				1,910,619				4,954,618				4,668,963
Loans sold		$	1,470,928			$	1,898,539			$	1,877,772			$	1,817,884			$	5,166,584			$	4,327,994
Purchase money % of loans closed			69	%			48	%			69	%			43	%			59	%			46	%
Realized gain on sales and fees as a % of loans sold			3.00	%			4.26	%			2.90	%			4.16	%			3.37	%			3.30	%
Net interest income		$	2,367			$	2,740			$	2,871			$	2,650			$	7,888			$	5,935
Other income			45,023				110,900				39,765				67,507				152,295				203,103
Other expense			31,787				43,417				36,391				41,183				109,361				99,435
Income taxes			3,179				14,823				1,280				5,940				10,399				22,042
Net income		$	12,424			$	55,400			$	4,965			$	23,034			$	40,423			$	87,561
						September 30				December 31				September 30				June 30				March 31
Period End Mortgage Banking Segment Data:						2021				2020				2020				2021				2021
Locked pipeline						$	648,706			$	989,640			$	1,398,898			$	660,258			$	979,842
Balance of loans serviced						$	3,723,206			$	3,587,953			$	3,551,157			$	3,674,023			$	3,585,890
Number of loans serviced							25,583				25,614				25,813				25,526				25,443
						September 30				December 31				September 30				June 30				March 31
Asset Quality Data:						2021				2020				2020				2021				2021
EOP Non-Accrual Loans						$	37,689			$	62,718			$	71,312			$	41,182			$	48,985
EOP 90-Day Past Due Loans							14,827				13,832				12,583				14,135				15,719
EOP Restructured Loans (1)							37,752				55,657				68,381				47,271				51,529
Total EOP Non-performing Loans						$	90,268			$	132,207			$	152,276			$	102,588			$	116,233
EOP Other Real Estate Owned							16,696				22,595				25,696				18,474				18,690
Total EOP Non-performing Assets						$	106,964			$	154,802			$	177,972			$	121,062			$	134,923
		Three Months Ended																Nine Months Ended
		September				September				June				March				September				September
Allowance for Loan Losses:		2021				2020				2021				2021				2021				2020
Beginning Balance		$	217,545			$	215,121			$	231,582			$	235,830			$	235,830			$	77,057
Cumulative Effect Adjustment for CECL			0				0				0				0				0				57,442
			217,545				215,121				231,582				235,830				235,830				134,499
Initial allowance for acquired PCD loans			0				0				0				0				0				18,635
Gross Charge-offs			(2,004	)			(8,468	)			(6,131	)			(6,957	)			(15,092	)			(22,863	)
Recoveries			3,173				2,820				910				2,415				6,498				6,183
Net Recoveries (Charge-offs)			1,169				(5,648	)			(5,221	)			(4,542	)			(8,594	)			(16,680	)
Provision for Loan & Lease Losses			(7,823	)			16,339				(8,816	)			294				(16,345	)			89,358
Ending Balance			210,891				225,812				217,545				231,582				210,891				225,812
Reserve for lending-related commitments			25,191				15,960				20,897				20,024				25,191				15,960
Allowance for Credit Losses (2)		$	236,082			$	241,772			$	238,442			$	251,606			$	236,082			$	241,772
Notes:
(1) Restructured loans with an aggregate balance of $24,662, $53,665, $32,471, $38,023 and $41,185 at September 30, 2021, September 30, 2020, June 30, 2021, March 31, 2021 and December 31, 2020, respectively, were on nonaccrual status, but are not included in “EOP Non-Accrual Loans” above. A restructured loan with a balance of $46 thousand at June 30, 2021 was 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/20211026005205/en/

W. Mark Tatterson

Chief Financial Officer

(800) 445-1347 ext. 8716

Source: United Bankshares, Inc.

FAQ

What were the earnings for United Bankshares in the third quarter of 2021?

United Bankshares reported earnings of $92.2 million, or $0.71 per diluted share, in the third quarter of 2021.

How did United Bankshares' earnings for the first nine months of 2021 compare to 2020?

Earnings for the first nine months of 2021 were $293.9 million, up 49% from $196.7 million in the same period of 2020.

What is the status of the merger between United Bankshares and Community Bankers Trust?

All necessary regulatory approvals for the merger have been received, and it is expected to close in the fourth quarter of 2021.

What were the nonperforming assets of United Bankshares as of September 30, 2021?

Nonperforming assets were reported at $107.0 million, representing 0.39% of total assets.