United Bankshares, Inc. (NASDAQ: UBSI), today reported earnings for the second quarter and the first half of 2011. Earnings for the second quarter of 2011 were $17.5 million or $0.40 per diluted share while earnings for the first half of 2011 were $35.3 million or $0.81 per diluted share.

Second quarter of 2011 results produced a return on average assets of 0.98% and a return on average equity of 8.66%, respectively. For the first half of 2011, United’s return on average assets was 1.00% while the return on average equity was 8.85%. These returns compare very favorably to United’s most recently reported Federal Reserve peer group’s (bank holding companies with total assets between $3 and $10 billion) average return on assets of 0.70% and average return on equity of 6.57% for the first quarter of 2011.

The results for the second quarter and first half of 2011 included noncash, before-tax, other-than-temporary impairment charges of $4.1 million and $6.2 million, respectively, on certain investment securities.

Earnings for the second quarter of 2010 were $17.9 million or $0.41 per diluted share while earnings for the first half of 2010 were $35.3 million or $0.81 per diluted share. The results for the second quarter and first half of 2010 included before-tax, net gains of $796 thousand and $1.9 million, respectively, on the sale of investment securities and noncash, before-tax, other-than-temporary impairment charges of $1.1 million and $2.6 million, respectively, on certain investment securities. United’s annualized returns on average assets and average equity were 0.96% and 9.23%, respectively, for the second quarter of 2010 while the returns on average assets and average equity was 0.94% and 9.20%, respectively, for the first half of 2010.

United’s asset quality also continues to outperform its peers. United’s percentage of nonperforming loans to loans, net of unearned income of 1.22% at June 30, 2011 compares favorably to the most recently reported percentage of 3.89% at March 31, 2011 for United’s Federal Reserve peer group. At June 30, 2011, nonperforming loans were $64.0 million, down from nonperforming loans of $67.2 million or 1.28% of loans, net of unearned income, at December 31, 2010. As of June 30, 2011, the allowance for loan losses was $73.1 million or 1.39% of loans, net of unearned income, which was comparable to $73.0 million or 1.39% of loans, net of unearned income, at December 31, 2010. United’s coverage ratio of its allowance for loan losses to nonperforming loans also compares favorably to its peers. The coverage ratio for United was 114.3% and 108.6% at June 30, 2011 and December 31, 2010, respectively. The coverage ratio for United’s Federal Reserve peer group was 78.62% at March 31, 2011. Total nonperforming assets of $109.7 million, including OREO of $45.7 million at June 30, 2011, represented 1.54% of total assets which also compares favorably to the most recently reported percentage of 3.25% at March 31, 2011 for United’s Federal Reserve peer group.

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 13.9% at June 30, 2011 while its Tier I capital and leverage ratios are 12.5% and 10.5%, respectively. The regulatory requirements for a well-capitalized financial institution are a risk-based capital ratio of 10%, a Tier I capital ratio of 6% and a leverage ratio of 5%.

“Considering the current economic environment, United’s earnings continue to be strong with asset quality favorable to peers,” stated Richard M. Adams, United’s Chairman of the Board and Chief Executive Officer. “United also continues to be well-capitalized based upon regulatory guidelines.”

The net interest margin for the second quarter of 2011 was 3.83%, which was an increase of 14 basis points from a net interest margin of 3.69% for the second quarter of 2010. However, tax-equivalent net interest income for the second quarter of 2011 was $60.3 million, a decrease of $1.4 million or 2% from the second quarter of 2010. This decrease in tax-equivalent net interest income was primarily attributable to a decline of 30 basis points in the average yield on earning assets for the second quarter of 2011 as compared to the second quarter of 2010. In addition, average earning assets declined $387.2 million or 6% from the second quarter of 2010. Average net loans declined $306.7 million or 6% for the second quarter of 2011 while average investments decreased $128.3 million or 14% due mainly to maturities and calls of securities which were not fully reinvested from the second quarter of 2010. Partially offsetting the decreases to tax-equivalent net interest income for the second quarter of 2011 were decreases in the average cost of funds of 45 basis points and average interest-bearing liabilities of $709.9 million or 13% from the second quarter of 2010.

The net interest margin for the first half of 2011 was 3.88%, which was an increase of 21 basis points from a net interest margin of 3.67% for the first half of 2010. However, tax-equivalent net interest income for the first half of 2011 was $121.1 million, a decrease of $2.6 million or 2% from the first half of 2010. This decrease in tax-equivalent net interest income was primarily attributable to a decline in average earning assets of $490.1 million or 7% from the first half of 2010. Average net loans declined $375.2 million or 7% for the first half of 2011 while average investments decreased $141.2 million or 15% due mainly to maturities and calls of securities which were not fully reinvested from the first half of 2010. The average yield on earning assets declined 25 basis points for the first half of 2011 as compared to the first half of 2010. Partially offsetting the decreases to tax-equivalent net interest income for the first half of 2011 were decreases in the average cost of funds of 45 basis points and average interest-bearing liabilities of $786.1 million or 14% from the first half of 2010.

On a linked-quarter basis, United’s tax-equivalent net interest income for the second quarter of 2011 was relatively flat from the first quarter of 2011, decreasing $558 thousand or less than 1% due mainly to a decline of 15 basis points in the average yield on earning assets. Average earning assets were relatively flat from the first quarter of 2011 as well, increasing $51.0 million or less than 1% as average short-term investments increased $59.3 million or 19%. Average investment securities and average net loans were relatively flat for the quarter, decreasing $661 thousand and $7.7 million, respectively, or less than 1%. Partially offsetting the decreases to tax-equivalent net interest income for the second quarter of 2011 was a decrease of 7 basis points in the average cost of funds from the first quarter of 2011. The net interest margin of 3.83% for the second quarter of 2011 was a decrease of 9 basis points from the net interest margin of 3.92% for the first quarter of 2011.

For the quarters ended June 30, 2011 and 2010, the provision for credit losses was $4.8 million and $6.4 million, respectively, while the provision for the first six months of 2011 was $9.2 million as compared to $13.3 million for the first six months of 2010. Net charge-offs were $4.6 million and $5.4 million for the second quarter of 2011 and 2010, respectively, as compared to $9.1 million and $11.9 million for the first half of 2011 and 2010. Annualized net charge-offs as a percentage of average loans were 0.36% and 0.35% for the second quarter and first half of 2011, respectively. United’s most recently reported Federal Reserve peer group’s net charge-offs to average loans percentage was 0.94% for the first quarter of 2011.

Noninterest income for the second quarter of 2011 was $13.3 million, which was a decrease of $4.3 million from the second quarter of 2010. Included in noninterest income for the second quarter of 2011 were noncash, before-tax, other-than-temporary impairment charges of $4.1 million on certain investment securities. Included in noninterest income for the second quarter of 2010 were noncash, before-tax other-than-temporary impairment charges of $1.1 million on certain investment securities. Excluding the results of the noncash, other-than-temporary impairment charges as well as net gains and losses from sales and calls of investment securities, noninterest income would have decreased $1.1 million or 6%. This decrease for the second quarter of 2011 was due primarily to a decrease of $836 thousand in income from derivatives not in hedge relationships due to a change in the fair value and a decrease of $395 thousand in fees from bankcard services due mainly to the sale of United’s merchant business in the fourth quarter of 2010. A similar amount of expense related to the change in the fair value of other derivative financial instruments as well as a reduction in bankcard processing costs as a result of the sale of United’s merchant business is included in other expense in the income statement.

Noninterest income for the first half of 2011 was $28.0 million, which was a decrease of $5.2 million from the first half of 2010. Included in noninterest income for the first half of 2011 was a before-tax, net gain of $1.2 million on the sale of investment securities and noncash, before-tax, other-than-temporary impairment charges of $6.2 million on certain investment securities. Included in noninterest income for the first half of 2010 was a before-tax, net gain of $1.9 million on the sale of investment securities and noncash, before-tax other-than-temporary impairment charges of $2.6 million on certain investment securities. Excluding the results of the noncash, other-than-temporary impairment charges as well as the net gains from sales and calls of investment securities, noninterest income would have decreased $825 thousand or 2%. This decrease for the first half of 2011 was due primarily to decreases of $908 thousand in income from derivatives not in hedge relationships due to a change in the fair value and $882 thousand in fees from bankcard services due mainly to the sale of United’s merchant business. A similar amount of expense related to the change in the fair value of other derivative financial instruments as well as a reduction in bankcard processing costs as a result of the sale of United’s merchant business is included in other expense in the income statement. Partially offsetting these decreases was an increase of $631 thousand in fees from deposit services due mainly to higher ATM and debit card income.

On a linked-quarter basis, noninterest income for the second quarter of 2011 decreased $1.3 million from the first quarter of 2011. Included in the results for the second quarter and first quarter of 2011 were noncash, before-tax, other-than-temporary impairment charges of $4.1 million and $2.1 million, respectively. Excluding the results of the noncash, other-than-temporary impairment charges as well as net gains and losses from sales and calls of investment securities, noninterest income would have increased $590 thousand or 4% on a linked-quarter basis due primarily to an increase of $710 thousand in fees from deposit services as a result of increased income from overdraft fees and debit card transactions. Partially offsetting this increase was a decrease of $228 thousand in income from derivatives not in hedge relationships due to a change in the fair value. A similar amount of expense related to the change in the fair value of other derivative financial instruments is included in other expense in the income statement.

Noninterest expense for the second quarter of 2011 was $41.7 million, a decrease of $3.5 million or 8% from the second quarter of 2010 due primarily to decreases of $1.4 million in other real estate owned (OREO) costs due mainly to lower losses on sales and smaller declines in the fair values of OREO properties, $836 thousand in the expense from derivatives not in hedge relationships due to a change in the fair value and $592 thousand in bankcard processing expense due mainly to the sale of United’s merchant business. As previously mentioned, a similar amount of income related to the change in the fair value of other derivative financial instruments as well as a reduction in bankcard servicing fees as a result of the sale of United’s merchant business is included in other income in the income statement.

Noninterest expense for the first half of 2011 was $85.1 million, a decrease of $3.8 million or 4% from the first half of 2010 due primarily to decreases of $1.3 million in OREO costs due mainly to fewer fair value and sales losses on OREO properties, $1.1 million in bankcard processing expense due mainly to the sale of United’s merchant business and $908 thousand in the expense from derivatives not in hedge relationships due to a change in the fair value. Once again, a similar amount of income related to the change in the fair value of other derivative financial instruments as well as a reduction in bankcard servicing fees as a result of the sale of United’s merchant business is included in other income in the income statement.

On a linked-quarter basis, noninterest expense for the second quarter of 2011 decreased $1.8 million or 4% from the first quarter of 2011 due primarily to decreases in several noninterest expense items. The largest decrease was in OREO costs of $534 thousand due to lower losses on sales and smaller declines in the fair values of OREO properties. Net occupancy and employee benefits expense each declined $247 thousand. Also, as previously mentioned, expense from derivatives not in hedge relationships decreased $228 thousand due to a change in the fair value.

During the second quarter of 2011, United’s Board of Directors declared a cash dividend of $0.30 per share. United has increased its dividend to shareholders for 37 consecutive years. The annualized 2011 dividend of $1.20 equates to a yield of approximately 5% based on recent UBSI market prices.

On July 8, 2011, United acquired 100% of the outstanding common stock of Centra Financial Holdings, Inc. (Centra) of Morgantown, West Virginia. The acquisition of Centra enhances United’s existing footprint in Maryland and West Virginia, as well as provide an entry into Pennsylvania. At consummation, Centra had assets of $1.3 billion, loans of $1.1 billion and deposits of $1.1 billion.

Following completion of the merger with Centra, United has consolidated assets of approximately $8.5 billion with 126 full service offices in West Virginia, Virginia, Maryland, Ohio, Pennsylvania and Washington, D.C. United Bankshares 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, 2011 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, 2011 and will adjust amounts preliminarily reported, if necessary.

Forward-Looking Statements

This press release contains certain forward-looking statements, including certain plans, expectations, goals and projections, which are subject to numerous assumptions, risks and uncertainties. Actual results could differ materially from those contained in or implied by such statements for a variety of factors including: changes in economic conditions; movements in interest rates; competitive pressures on product pricing and services; success and timing of business strategies; the nature and extent of governmental actions and reforms; and rapidly changing technology and evolving banking industry standards.

UNITED BANKSHARES, INC. AND SUBSIDIARIES

FINANCIAL SUMMARY

(In Thousands Except for Per Share Data)
 
Three Months Ended Six Months Ended
June 30

2011
June 30

2010
June 30

2011
June 30

2010
EARNINGS SUMMARY:
Interest income, taxable equivalent $ 74,072 $ 83,679 $ 149,382 $ 169,332
Interest expense 13,814 22,025 28,308 45,642
Net interest income, taxable equivalent 60,258 61,654 121,074 123,690
Taxable equivalent adjustment 1,637 1,490 3,090 3,047
Net interest income 58,621 60,164 117,984 120,643
Provision for loan losses 4,800 6,400 9,236 13,268
Noninterest income 13,334 17,584 27,985 33,157
Noninterest expenses 41,677 45,188 85,146 88,939
Income taxes 8,026 8,241 16,250 16,252
Net income $ 17,452 $ 17,919 $ 35,337 $ 35,341
 
PER COMMON SHARE:
Net income:
Basic $ 0.40 $ 0.41 $ 0.81 $ 0.81
Diluted 0.40 0.41 0.81 0.81
Cash dividends $ 0.30 $ 0.30 0.60 0.60
Book value 18.43 17.84
Closing market price $ 24.48 $ 23.87
Common shares outstanding:
Actual at period end, net of treasury shares 43,645,485 43,581,834
Weighted average- basic 43,645,541 43,539,531 43,637,497 43,497,809
Weighted average- diluted 43,676,407 43,640,805 43,686,203 43,587,686
 
FINANCIAL RATIOS:
Return on average assets 0.98 % 0.96 % 1.00 % 0.94 %
Return on average shareholders’ equity 8.66 % 9.23 % 8.85 % 9.20 %
Average equity to average assets 11.35 % 10.36 % 11.34 % 10.20 %
Net interest margin 3.83 % 3.69 % 3.88 % 3.67 %
 
June 30

2011
June 30

2010
December 31

2010
March 31

2011
PERIOD END BALANCES:
Assets $ 7,133,983 $ 7,463,360 $ 7,155,719 $ 7,191,336
Earning assets 6,307,773 6,635,280 6,334,914 6,344,359
Loans, net of unearned income 5,252,096 5,463,547 5,260,326 5,222,959
Loans held for sale 1,057 879 6,869 890
Investment securities 741,845 918,091 794,715 806,482
Total deposits 5,728,536 5,614,144 5,713,534 5,711,923
Shareholders’ equity 804,241 777,575 793,012 799,463
 
UNITED BANKSHARES, INC. AND SUBSIDIARIES

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
2011 2010 2011 2011 2010
 
Interest & Loan Fees Income $ 72,435 $ 82,189 $ 73,857 $ 146,292 $ 166,285
Tax equivalent adjustment   1,637   1,490   1,453   3,090   3,047  
Interest & Fees Income (FTE) 74,072 83,679 75,310 149,382 169,332
Interest expense   13,814   22,025   14,494   28,308   45,642  
Net Interest Income (FTE) 60,258 61,654 60,816 121,074 123,690
 
Provision for Loan Losses 4,800 6,400 4,436 9,236 13,268
 
Non-Interest Income:
Fees from trust & brokerage services 3,437 3,461 3,310 6,747 6,733
Fees from deposit services 10,341 10,117 9,631 19,972 19,341
Bankcard fees and merchant discounts 683 1,078 555 1,238 2,120
Other charges, commissions, and fees 381 490 454 835 848
Income from bank-owned life insurance 1,228 1,185 1,175 2,403 2,213
Mortgage banking income 131 129 234 365 241
Other non-interest revenue 599 1,424 851 1,450 2,339
Net other-than-temporary impairment losses (4,096) (1,096) (2,110) (6,206 ) (2,582 )
Net gains on sales/calls of investment securities   630   796   551   1,181   1,904  
Total Non-Interest Income   13,334   17,584   14,651   27,985   33,157  
 
Non-Interest Expense:
Employee compensation 15,015 14,848 14,870 29,885 29,749
Employee benefits 4,131 4,332 4,378 8,509 8,826
Net occupancy 4,140 4,274 4,387 8,527 8,945
Other expenses 14,477 16,138 15,347 29,824 31,278
Amortization of intangibles 354 491 383 737 1,025
OREO expense 1,233 2,648 1,767 3,000 4,268
FDIC expense   2,327   2,457   2,337   4,664   4,848  
Total Non-Interest Expense   41,677   45,188   43,469   85,146   88,939  
 
Income Before Income Taxes (FTE) 27,115 27,650 27,562 54,677 54,640
 
Tax equivalent adjustment   1,637   1,490   1,453   3,090   3,047  
 
Income Before Income Taxes 25,478 26,160 26,109 51,587 51,593
 
Taxes   8,026   8,241   8,224   16,250   16,252  
 
Net Income $ 17,452 $ 17,919 $ 17,885 $ 35,337 $ 35,341  
 
MEMO: Effective Tax Rate 31.50% 31.50% 31.50% 31.50 % 31.50 %
 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)
       
Consolidated Balance Sheets
June 30 June 30
2011 2010 June 30 December 31 June 30
Q-T-D Average Q-T-D Average 2011 2010 2010
 
Cash & Cash Equivalents $ 501,535 $ 456,010 $ 508,069 $ 461,389 $ 450,309
 
Securities Available for Sale 653,490 766,278 608,334 653,276 769,594
Held to Maturity Securities 64,142 70,691 63,699 67,036 68,704
Other Investment Securities   70,874   79,815     69,812     74,403   79,793  
Total Securities   788,506   916,784     741,845     794,715   918,091  
Total Cash and Securities   1,290,041   1,372,794     1,249,914     1,256,104   1,368,400  
 
Loans held for sale 1,464 1,827 1,057 6,869 879
 
Commercial Loans 3,533,509 3,668,802 3,570,556 3,533,559 3,638,669
Mortgage Loans 1,416,138 1,552,455 1,410,321 1,459,286 1,538,432
Consumer Loans   269,733   300,091     274,911     270,506   289,857  
 
Gross Loans 5,219,380 5,521,348 5,255,788 5,263,351 5,466,958
 
Unearned income   (3,341)   (3,661 )   (3,692 )   (3,025)   (3,411 )
 
Loans, net of unearned income 5,216,039 5,517,687 5,252,096 5,260,326 5,463,547
 
Allowance for Loan Losses (72,909) (68,273 ) (73,132 ) (73,033) (69,153 )
 
Goodwill 311,641 312,051 311,641 311,765 311,878
Other Intangibles   2,391   4,054     2,202     2,940   3,799  
Total Intangibles 314,032 316,105 313,843 314,705 315,677
 
Other Real Estate Owned 43,271 40,611 45,671 44,770 36,019
Other Assets   334,537   338,630     344,534     345,978   347,991  
 
Total Assets $ 7,126,475 $ 7,519,381   $ 7,133,983   $ 7,155,719 $ 7,463,360  
 
MEMO: Earning Assets $ 6,308,764 $ 6,695,924   $ 6,307,773   $ 6,334,914 $ 6,635,280  
 
Interest-bearing Deposits $ 4,308,770 $ 4,614,184 $ 4,292,987 $ 4,510,279 $ 4,479,030
Noninterest-bearing Deposits   1,375,842   1,081,171     1,435,549     1,203,255   1,135,114  
Total Deposits 5,684,612 5,695,355 5,728,536 5,713,534 5,614,144
 
Short-term Borrowings 247,706 291,646 201,438 193,214 306,427
Long-term Borrowings   336,139   696,652     336,063     386,458   696,551  
Total Borrowings 583,845 988,298 537,501 579,672 1,002,978
 
Other Liabilities   49,367   56,842     63,705     69,501   68,663  
 
Total Liabilities   6,317,824   6,740,495     6,329,742     6,362,707   6,685,785  
 
Preferred Equity --- --- --- --- ---
Common Equity   808,651   778,886     804,241     793,012   777,575  
Total Shareholders' Equity   808,651   778,886     804,241     793,012   777,575  
 
Total Liabilities & Equity $ 7,126,475 $ 7,519,381   $ 7,133,983   $ 7,155,719 $ 7,463,360  
 
MEMO: Interest-bearing Liabilities $ 4,892,615 $ 5,602,482   $ 4,830,488   $ 5,089,951 $ 5,482,008  
 
UNITED BANKSHARES, INC. AND SUBSIDIARIES

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: 2011 2010 2011 2011 2010
 
Earnings Per Share:
Basic $ 0.40 $ 0.41 $ 0.41 $ 0.81 $ 0.81
Diluted $ 0.40 $ 0.41 $ 0.41 $ 0.81 $ 0.81
 
Common Dividend Declared Per Share: $ 0.30 $ 0.30 $ 0.30 $ 0.60 $ 0.60
 
High Common Stock Price $ 27.46 $ 31.99 $ 30.84 $ 30.84 $ 31.99
Low Common Stock Price $ 22.36 $ 23.82 $ 25.66 $ 22.36 $ 20.15
 
Average Shares Outstanding (Net of Treasury Stock):
Basic 43,645,541 43,539,531 43,629,364 43,637,497 43,497,809
Diluted 43,676,407 43,640,805 43,700,436 43,686,203 43,587,686
 
Memorandum Items:
 
Tax Applicable to Security Sales/Calls $ 220 $ 279 $ 193 $ 413 $ 666
 
Common Dividends $ 13,099 $ 13,078 $ 13,095 $ 26,194 $ 26,129
 
June June March
EOP Share Data: 2011 2010 2011
 
Book Value Per Share $ 18.43 $ 17.84 $ 18.32
Tangible Book Value Per Share $ 11.24 $ 10.60 $ 11.12
 
52-week High Common Stock Price $ 30.84 $ 31.99 $ 31.99
Date 01/19/11 04/23/10 04/23/10
52-week Low Common Stock Price $ 22.09 $ 16.39 $ 22.09
Date 08/24/10 11/20/09 08/24/10
 
EOP Shares Outstanding (Net of Treasury Stock): 43,645,485 43,581,834 43,645,650
 
Memorandum Items:
 
EOP Employees (full-time equivalent) 1,438 1,470 1,426
 
UNITED BANKSHARES, INC. AND SUBSIDIARIES

Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)
       
Three Months Ended Six Months Ended
June June March June June
Selected Yields and Net Interest Margin: 2011 2010 2011 2011 2010
 
Loans 5.18% 5.33% 5.24% 5.21 % 5.33%
Investment Securities 3.73% 4.75% 4.19% 3.96 % 4.86%
Money Market Investments/FFS 0.30% 0.33% 0.37% 0.34 % 0.35%
Average Earning Assets Yield 4.71% 5.01% 4.86% 4.78 % 5.03%
Interest-bearing Deposits 0.91% 1.26% 0.99% 0.95 % 1.30%
Short-term Borrowings 0.04% 0.06% 0.04% 0.04 % 0.06%
Long-term Borrowings 4.83% 4.32% 4.75% 4.79 % 4.32%
Average Liability Costs 1.13% 1.58% 1.20% 1.17 % 1.62%
Net Interest Spread 3.58% 3.43% 3.66% 3.61 % 3.41%
Net Interest Margin 3.83% 3.69% 3.92% 3.88 % 3.67%
 
Selected Financial Ratios:
 
Return on Average Common Equity 8.66% 9.23% 9.04% 8.85 % 9.20%
Return on Average Assets 0.98% 0.96% 1.02% 1.00 % 0.94%
Efficiency Ratio 52.03% 52.87% 53.64% 52.83 % 53.10%
 
June June March
2011 2010 2011
 
Loan / Deposit Ratio 91.68% 97.32 % 91.44%
Allowance for Loan Losses/ Loans, net of unearned income 1.39% 1.27 % 1.40%
Allowance for Credit Losses (1)/ Loans, net of unearned income 1.43% 1.31 % 1.44%
Nonaccrual Loans / Loans, net of unearned income 0.98% 1.19 % 1.20%
90-Day Past Due Loans/ Loans, net of unearned income 0.17% 0.17 % 0.13%
Non-performing Loans/ Loans, net of unearned income 1.22% 1.35 % 1.40%
Non-performing Assets/ Total Assets 1.54% 1.47 % 1.63%
Primary Capital Ratio 12.20% 11.27 % 12.04%
Shareholders' Equity Ratio 11.27% 10.42 % 11.12%
Price / Book Ratio 1.33x 1.34 x 1.45 x
Price / Earnings Ratio 15.32x 14.53 x 16.20 x
 
Note: (1) Includes allowances for loan losses and lending-related commitments.
 
UNITED BANKSHARES, INC. AND SUBSIDIARIES

Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)
       
June June December March
Asset Quality Data: 2011 2010 2010 2011
 
EOP Non-Accrual Loans $ 51,237 $ 64,831 $ 59,996 $ 62,703
EOP 90-Day Past Due Loans 8,865 9,055 6,798 6,539
EOP Restructured Loans (2)   3,886   ---     437   3,716
Total EOP Non-performing Loans $ 63,988 $ 73,886 $ 67,231 $ 72,958
 
EOP Other Real Estate Owned   45,671   36,019     44,770   44,362
Total EOP Non-performing Assets $ 109,659 $ 109,905   $ 112,001 $ 117,320
 
 
Three Months Ended Six Months Ended
June June March June June
Allowance for Credit Losses: (1) 2011 2010 2011 2011 2010
 
Beginning Balance $ 75,135 $ 70,366 $ 75,039 $ 75,039 $ 70,010
Provision for Credit Losses (3)   4,689   6,400     4,590   9,279   13,268  
79,824 76,766 79,629 84,318 83,278
Gross Charge-offs (5,599) (5,985 ) (4,741 ) (10,340) (12,920 )
Recoveries   956   580     247   1,203   1,003  
Net Charge-offs   (4,643)   (5,405 )   (4,494 )   (9,137)   (11,917 )
Ending Balance $ 75,181 $ 71,361   $ 75,135 $ 75,181 $ 71,361  
 
Note: (1) Includes allowances for loan losses and lending-related commitments.

(2) Restructured loans with an aggregate balance of $3,886 and $1,067 at June 30, 2011 and March 31, 2011, respectively, were on nonaccrual status, but are not included in the “EOP Non-Accrual Loans.” A restructured loan with a balance of $437 thousand at December 31, 2010 was past due 90 days or more, but was not included in the “EOP 90-Day Past due Loans” category.
(3) Includes the Provision for Loan Losses and a provision for lending-related commitments included in Other Expenses.

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