The company, with $8 billion in assets, has seen it shares drop 46% this year. The stock rallied from March until May, but pulled back when United Bankshares announced lower second-quarter earnings from $21.4 million in loan charge-offs.
During the third quarter, charge-offs declined to $4.9 million, the lowest in more than a year. Earnings recovered, with net income of $17.4 million, or 40 cents a share, and a return on average assets of 0.88%. While there was still lot of room for improvement in profits, the company boasted a net interest margin of 3.63%, down slightly from 3.67% in June and 3.71% a year earlier.
The nonperforming-assets ratio was 1.45% as of Sept. 30, up from 1.31% in the previous quarter and 0.77% a year earlier.
United Bankshares paid out much less in dividends than the company earned during the first three quarters of 2009. Over the previous three years, the dividend payout ratio was below 60%. According to SNL, the company's tangible common equity ratio was a decent 5.84% as of Sept. 30.United Bankshares reported a tier 1 leverage ratio of 8.93% and total risk-based capital ratio (which reflects loan quality and reserve coverage) as of Sept. 30, considerably higher than the 5% and 10% ratios required for most banks to be considered well-capitalized under regulatory guidelines. For United Bankshares, the dividend appears safe. The stock is trading at 10.3 times current earnings and 1.65 times tangible book value.
Capitol Federal Financial
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV