United Bankshares, Inc. Announces Earnings For The Third Quarter And First Nine Months Of 2011

United Bankshares, Inc. (NASDAQ: UBSI), today reported earnings for the third quarter and the first nine months of 2011. Earnings for the third quarter of 2011 were $20.0 million or $0.40 per diluted share while earnings for the first nine months of 2011 were $55.4 million or $1.21 per diluted share.

Third quarter of 2011 results produced a return on average assets of 0.95% and a return on average equity of 8.26%, respectively. For the first nine months of 2011, United’s return on average assets was 0.98% while the return on average equity was 8.62%. These returns compare 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 0.72% and average return on equity of 6.56% for the first six months of 2011.

The results for the third quarter and first nine months of 2011 included before-tax, other-than-temporary impairment charges of $7.9 million and $14.1 million, respectively, on certain investment securities. In addition, on July 8, 2011, United completed its acquisition of Centra Financial Holdings, Inc. (Centra) of Morgantown, West Virginia. The results of operations of Centra are included in the consolidated results of operations from the date of acquisition. As a result, comparisons for the third quarter and first nine months of 2011 to the same time periods of 2010 are impacted by increased levels of average balances, income, expense, and asset quality results due to the acquisition. At consummation, Centra had assets of approximately $1.3 billion, loans of $1.0 billion, deposits of $1.1 billion and shareholders' equity of $131 million.

Earnings for the third quarter of 2010 were $17.3 million or $0.40 per diluted share while earnings for the first nine months of 2010 were $52.7 million or $1.21 per diluted share. The results for the third quarter and first nine months of 2010 included before-tax, other-than-temporary impairment charges of $1.9 million and $4.4 million, respectively, on certain investment securities. United’s annualized returns on average assets and average equity were 0.91% and 8.73%, respectively, for the third quarter of 2010 while the returns on average assets and average equity was 0.93% and 9.04%, respectively, for the first nine months 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 1.18% at September 30, 2011 compares favorably to the most recently reported percentage of 3.83% at June 30, 2011 for United’s Federal Reserve peer group. At September 30, 2011, nonperforming loans were $73.7 million as compared to nonperforming loans of $67.2 million or 1.28% of loans, net of unearned income, at December 31, 2010. As of September 30, 2011, the allowance for loan losses was $73.5 million or 1.17% of loans, net of unearned income, as compared 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 99.7% and 108.6% at September 30, 2011 and December 31, 2010, respectively. The coverage ratio for United’s Federal Reserve peer group was 83.6% at June 30, 2011. The declines in the ratios at September 30, 2011 of the allowance for loan losses as a percentage of loans, net of unearned income and of nonperforming loans was because United was unable to carry-over Centra’s previously established allowance for loan losses in accordance with accounting rules. United recorded a downward fair value adjustment of approximately $36.7 million on the loans acquired from Centra. Total nonperforming assets of $126.4 million, including OREO of $52.7 million at September 30, 2011, represented 1.47% of total assets which also compares favorably to the most recently reported percentage of 3.24% at June 30, 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 13.6% at September 30, 2011 while its Tier I capital and leverage ratios are 12.4% and 10.4%, 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%.

During the third 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.

“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.”

Tax-equivalent net interest income for the third quarter of 2011 was $72.5 million, an increase of $12.1 million or 20% from the third quarter of 2010. This increase in tax-equivalent net interest income was primarily attributable to an increase in average earning assets from the Centra acquisition. Average earning assets increased $770.9 million or 12% from the third quarter of 2010. Average net loans increased $777.0 million or 15% for the third quarter of 2011. In addition, the average cost of funds declined 55 basis points from the third quarter of 2010. Partially offsetting the increases to tax-equivalent net interest income for the third quarter of 2011 was a decline of 23 basis points in the average yield on earning assets for the third quarter of 2011 as compared to the same quarter in 2010. The net interest margin for the third quarter of 2011 was 3.87%, which was an increase of 27 basis points from a net interest margin of 3.60% for the third quarter of 2010.

Tax-equivalent net interest income for the first nine months of 2011 was $193.6 million, an increase of $9.5 million or 5% from the first nine months of 2010. This increase in tax-equivalent net interest income was primarily attributable to a decrease in average interest-bearing liabilities of $421.7 million or 7% due mainly to the net repayment of approximately $360 million in Federal Home Loan Bank advances since September 30, 2010. Average earning assets were relatively flat, decreasing $65.2 million or less than 1% from the first nine months of 2010. Average net loans were also flat, increasing $13.1 million or less than 1% for the first nine months of 2011 while average investments decreased $111.3 million or 12%. In addition, the average cost of funds declined 50 basis points from the first nine months of 2010. Partially offsetting the increases to tax-equivalent net interest income for the first nine months of 2011 was a decline of 25 basis points in the average yield on earning assets for the first nine months of 2011 as compared to the first nine months of 2010. The net interest margin for the first nine months of 2011 was 3.87%, which was an increase of 22 basis points from a net interest margin of 3.65% for the first nine months of 2010.

On a linked-quarter basis, United’s tax-equivalent net interest income for the third quarter of 2011 increased $12.3 million or 20% from the second quarter of 2011 due mainly to an increase in average earning assets as a result of the Centra merger. Average earning assets increased $1.2 billion or 18% from the second quarter of 2011 as average investment securities and average net loans increased $45.7 million or 6% and $952.9 million or 19% for the quarter, respectively. In addition, the average cost of funds declined 18 basis points from the second quarter of 2011. Partially offsetting the increases to tax-equivalent net interest income for the third quarter of 2011 was a decrease of 10 basis points in the average yield on earning assets from the second quarter of 2011. The net interest margin of 3.87% for the third quarter of 2011 was an increase of 4 basis points from the net interest margin of 3.83% for the second quarter of 2011.

For the quarters ended September 30, 2011 and 2010, the provision for loan losses was $3.6 million and $6.1 million, respectively, while the provision for the first nine months of 2011 was $12.9 million as compared to $19.4 million for the first nine months of 2010. Net charge-offs were $3.3 million and $4.7 million for the third quarter of 2011 and 2010, respectively, as compared to $12.4 million and $16.6 million for the first nine months of 2011 and 2010. Annualized net charge-offs as a percentage of average loans were 0.21% and 0.27% for the third quarter and first nine months of 2011, respectively. United’s most recently reported Federal Reserve peer group’s net charge-offs to average loans percentage was 1.01% for the second quarter of 2011.

Noninterest income for the third quarter of 2011 was $11.0 million, which was a decrease of $4.7 million from the third quarter of 2010. Included in noninterest income for the third quarter of 2011 were before-tax, other-than-temporary impairment charges of $7.9 million on certain investment securities. Included in noninterest income for the third quarter of 2010 were before-tax, other-than-temporary impairment charges of $1.9 million on certain investment securities. Excluding the results of the other-than-temporary impairment charges as well as net gains and losses from sales and calls of investment securities, noninterest income would have increased $1.0 million or 6% from the third quarter of 2010. This increase for the third quarter of 2011 was due primarily to increases of $364 thousand in fees from deposit services and $262 thousand in income from bank-owned life insurance policies. These increases were primarily due to the Centra merger.

Noninterest income for the first nine months of 2011 was $39.0 million, which was a decrease of $9.9 million from the first nine months of 2010. Included in noninterest income for the first nine months of 2011 was a before-tax, net gain of $1.6 million on the sales and calls of investment securities and before-tax, other-than-temporary impairment charges of $14.1 million on certain investment securities. Included in noninterest income for the first nine months of 2010 was a before-tax, net gain of $2.0 million on the sale of investment securities and before-tax, other-than-temporary impairment charges of $4.4 million on certain investment securities. Excluding the results of the other-than-temporary impairment charges as well as the net gains from the sales and calls of investment securities, noninterest income would have been relatively flat, increasing $208 thousand or less than 1%. This slight increase for the first nine months of 2011 was due primarily to increases of $995 thousand in fees from deposit services and $452 thousand in income from bank-owned life insurance policies due to the Centra merger. Partially offsetting these increases was a decrease of $1.1 million in income from derivatives not in hedge relationships due to a change in the fair value and a decrease of $738 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.

On a linked-quarter basis, noninterest income for the third quarter of 2011 decreased $2.4 million from the second quarter of 2011. Included in the results for the third quarter and second quarter of 2011 were before-tax, other-than-temporary impairment charges of $7.9 million and $4.1 million, respectively. Excluding the results of the other-than-temporary impairment charges as well as net gains and losses from sales and calls of investment securities, noninterest income would have increased $1.7 million or 10% on a linked-quarter basis due primarily to increases of $554 thousand in fees from bankcard services, $316 thousand in income from bank-owned life insurance policies, $268 thousand in income from derivatives not in hedge relationships due to a change in the fair value, and $121 thousand in fees from deposit services. 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 third quarter of 2011 was $48.9 million, an increase of $5.0 million or 11% from the third quarter of 2010 due primarily to increases of $2.4 million in employee compensation, $864 thousand in net occupancy expenses, $713 thousand in equipment expenses and $347 thousand in data processing fees. These increases were due mainly to the additional employees, offices, equipment and data processing from the Centra merger.

Noninterest expense for the first nine months of 2011 was $134.0 million which was relatively flat from the first nine months of 2010, increasing $1.2 million or less than 1%. The slight increase was due mainly to increases of $2.5 million in employee compensation, $446 thousand in net occupancy expenses, $1.0 million in equipment expenses and $457 thousand in data processing fees. These increases were due mainly to the additional employees, offices, equipment and data processing from the Centra merger. Virtually offsetting these increases were decreases of $1.6 million in bankcard processing expense due mainly to the sale of United’s merchant business in the fourth quarter of 2010, $1.1 million in OREO costs due mainly to fewer declines in the fair value of OREO properties and $1.1 million in the expense from derivatives not in hedge relationships due to a change in the fair value. 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.

On a linked-quarter basis, noninterest expense for the third quarter of 2011 increased $7.2 million or 17% from the second quarter of 2011 due mainly to the Centra merger. Accordingly, most major categories of noninterest expense showed increases. In particular, employee compensation expense increased $2.0 million, employee benefits expense increased $230 thousand, net occupancy expense increased $911 thousand, equipment expense increased $771 thousand, core deposit amortization increased $506 thousand and data processing fees increased $189 thousand mainly the result of the Centra merger. In addition, OREO expense increased $896 thousand due to a decline in the fair values of OREO properties and expense from derivatives not in hedge relationships increased $268 thousand due to a change in the fair value.

United has consolidated assets of approximately $8.6 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 September 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 September 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 Nine Months Ended
September 30

2011
  September 30

2010
September 30

2011
  September 30

2010
EARNINGS SUMMARY:    
Interest income, taxable equivalent $ 86,466 $ 81,333 $ 235,848 $ 250,665
Interest expense 13,949 20,907 42,257 66,549
Net interest income, taxable equivalent 72,517 60,426 193,591 184,116
Taxable equivalent adjustment 1,765 1,444 4,855 4,491
Net interest income 70,752 58,982 188,736 179,625
Provision for loan losses 3,637 6,123 12,873 19,391
Noninterest income 10,978 15,690 38,963 48,847
Noninterest expenses 48,873 43,898 134,019 132,837
Income taxes 9,204 7,335 25,454 23,587
Net income $ 20,016 $ 17,316 $ 55,353 $ 52,657
 
PER COMMON SHARE:
Net income:
Basic $ 0.40 $ 0.40 $ 1.21 $ 1.21
Diluted 0.40 0.40 1.21 1.21
Cash dividends $ 0.30 $ 0.30 0.90 0.90
Book value 19.38 18.00
Closing market price $ 20.09 $ 24.89
Common shares outstanding:
Actual at period end, net of treasury shares 50,205,691 43,597,507
Weighted average- basic 49,628,087 43,588,021 45,656,304 43,528,210
Weighted average- diluted 49,636,382 43,645,653 45,692,106 43,607,091
 
FINANCIAL RATIOS:
Return on average assets 0.95 % 0.91 % 0.98 % 0.93 %
Return on average shareholders’ equity 8.26 % 8.73 % 8.62 % 9.04 %
Average equity to average assets 11.47 % 10.47 % 11.39 % 10.29 %
Net interest margin 3.87 % 3.60 % 3.87 % 3.65 %
 
September 30

2011
  September 30

2010
December 31

2010
  June 30

2011
PERIOD END BALANCES:
Assets $ 8,577,886 $ 7,573,020 $ 7,155,719 $ 7,133,983
Earning assets 7,607,225 6,733,138 6,334,914 6,307,773
Loans, net of unearned income 6,259,228 5,324,018 5,260,326 5,252,096
Loans held for sale 7,378 1,788 6,869 1,057
Investment securities 871,898 890,988 794,715 741,845
Total deposits 6,927,975 5,698,383 5,713,534 5,728,536
Shareholders’ equity 972,753 784,627 793,012 804,241
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 Year to Date
September September June March September September
2011 2010 2011 2011 2011 2010
 
Interest & Loan Fees Income $ 84,701 $ 79,889 $ 72,435 $ 73,857 $ 230,993 $ 246,174
Tax equivalent adjustment   1,765     1,444     1,637     1,453     4,855     4,491  
Interest & Fees Income (FTE) 86,466 81,333 74,072 75,310 235,848 250,665
Interest Expense   13,949     20,907     13,814     14,494     42,257     66,549  
Net Interest Income (FTE) 72,517 60,426 60,258 60,816 193,591 184,116
 
Provision for Loan Losses 3,637 6,123 4,800 4,436 12,873 19,391
 
Non-Interest Income:
Fees from trust & brokerage services 3,280 3,215 3,437 3,310 10,027 9,948
Fees from deposit services 10,462 10,098 10,341 9,631 30,434 29,439
Bankcard fees and merchant discounts 1,237 1,093 683 555 2,475 3,213
Other charges, commissions, and fees 455 508 381 454 1,290 1,356
Income from bank owned life insurance 1,544 1,282 1,228 1,175 3,947 3,495
Mortgage banking income 205 118 131 234 570 359
Other non-interest revenue 1,272 1,108 599 851 2,722 3,447
Net other-than-temporary impairment losses (7,922 ) (1,864 ) (4,096 ) (2,110 ) (14,128 ) (4,446 )
Net gains on sales/calls of investment

securities
 

445
   

132
    630     551    

1,626
   

2,036
 
Total Non-Interest Income   10,978     15,690     13,334     14,651     38,963     48,847  
 
Non-Interest Expense:
Employee compensation 16,970 14,613 15,015 14,870 46,855 44,362
Employee benefits 4,361 4,128 4,131 4,378 12,870 12,954
Net occupancy 5,051 4,187 4,140 4,387 13,578 13,132
Other expenses 17,194 16,065 14,477 15,347 47,018 47,343
Amortization of intangibles 860 448 354 383 1,597 1,473
OREO expense 2,129 2,001 1,233 1,767 5,129 6,269
FDIC expense   2,308     2,456     2,327     2,337     6,972     7,304  
Total Non-Interest Expense   48,873     43,898     41,677     43,469     134,019     132,837  
 
Income Before Income Taxes (FTE) 30,985 26,095 27,115 27,562 85,662 80,735
 
Tax equivalent adjustment   1,765     1,444     1,637     1,453     4,855     4,491  
 
Income Before Income Taxes 29,220 24,651 25,478 26,109 80,807 76,244
 
Taxes   9,204     7,335     8,026     8,224     25,454     23,587  
 
Net Income $ 20,016   $ 17,316   $ 17,452   $ 17,885   $ 55,353   $ 52,657  
 
MEMO: Effective Tax Rate 31.50 % 29.76 % 31.50 % 31.50 % 31.50 % 30.94 %
UNITED BANKSHARES, INC. AND SUBSIDIARIES

Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)
       
Consolidated Balance Sheets
September 30 September 30
2011 2010 September 30 December 31 September 30
Q-T-D Average Q-T-D Average 2011 2010 2010
 
Cash & Cash Equivalents $ 652,478 $ 614,853 $ 668,524 $ 461,389 $ 712,562
 
Securities Available for Sale 699,449 739,992 738,226 653,276 745,079
Held to Maturity Securities 62,572 67,767 62,114 67,036 67,496
Other Investment Securities   72,172     78,906     71,558     74,403     78,413  
Total Securities   834,193     886,665     871,898     794,715     890,988  
Total Cash and Securities   1,486,671     1,501,518     1,540,422     1,256,104     1,603,550  
 
Loans held for sale 3,859 1,304 7,378 6,869 1,788
 
Commercial Loans 4,275,255 3,587,518 4,370,792 3,533,559 3,543,273
Mortgage Loans 1,563,506 1,521,663 1,559,311 1,459,286 1,508,536
Consumer Loans   333,342     282,883     334,391     270,506     275,406  
 
Gross Loans 6,172,103 5,392,064 6,264,494 5,263,351 5,327,215
 
Unearned income   (4,988 )   (3,290 )   (5,266 )   (3,025 )   (3,197 )
 
Loans, net of unearned income 6,167,115 5,388,774 6,259,228 5,260,326 5,324,018
 
Allowance for Loan Losses (73,504 ) (69,588 ) (73,509 ) (73,033 ) (70,923 )
 
Goodwill 361,995 311,877 372,979 311,765 311,834
Other Intangibles   1,762     3,591     11,787     2,940     3,350  
Total Intangibles 363,757 315,468 384,766 314,705 315,184
 
Real Estate Owned 51,430 39,793 52,657 44,770 50,567
Other Assets   383,244     338,064     406,944     345,978     348,836  
 
Total Assets $ 8,382,572   $ 7,515,333   $ 8,577,886   $ 7,155,719   $ 7,573,020  
 
MEMO: Earning Assets $ 7,460,381   $ 6,689,520   $ 7,607,225   $ 6,334,914   $ 6,733,138  
 
Interest-bearing Deposits $ 5,217,555 $ 4,513,180 $ 5,314,303 $ 4,510,279 $ 4,542,216
Noninterest-bearing Deposits   1,557,654     1,150,999     1,613,672     1,203,255     1,156,167  
Total Deposits 6,775,209 5,664,179 6,927,975 5,713,534 5,698,383
 
Short-term Borrowings 248,829 316,066 260,320 193,214 329,535
Long-term Borrowings   354,482     696,459     355,433     386,458     696,358  
Total Borrowings 603,311 1,012,525 615,753 579,672 1,025,893
 
Other Liabilities   42,340     52,054     61,405     69,501     64,117  
 
Total Liabilities   7,420,860     6,728,758     7,605,133     6,362,707     6,788,393  
 
Preferred Equity --- --- --- --- ---
Common Equity   961,712     786,575     972,753     793,012     784,627  
Total Shareholders' Equity   961,712     786,575     972,753     793,012     784,627  
 
Total Liabilities & Equity $ 8,382,572   $ 7,515,333   $ 8,577,886   $ 7,155,719   $ 7,573,020  
 
MEMO: Interest-bearing Liabilities $ 5,820,866   $ 5,525,705   $ 5,930,056   $ 5,089,951   $ 5,568,109  
UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)
           
Three Months Ended Year to Date
September September   June March September September
Quarterly/Year-to-Date Share Data: 2011 2010 2011 2011 2011 2010
 
Earnings Per Share:
Basic $ 0.40 $ 0.40 $ 0.40 $ 0.41 $ 1.21 $ 1.21
Diluted $ 0.40 $ 0.40 $ 0.40 $ 0.41 $ 1.21 $ 1.21
 
Common Dividend Declared Per Share: $ 0.30 $ 0.30 $ 0.30 $ 0.30 $ 0.90 $ 0.90
 
High Common Stock Price $ 25.21 $ 27.25 $ 27.46 $ 30.84 $ 30.84 $ 31.99
Low Common Stock Price $ 18.78 $ 22.09 $ 22.36 $ 25.66 $ 18.78 $ 20.15
 
Average Shares Outstanding (Net of Treasury Stock):
Basic 49,628,087 43,588,021 43,645,541 43,629,364 45,656,304 43,528,210
Diluted 49,636,382 43,645,653 43,676,407 43,700,436 45,692,106 43,607,091
 
Memorandum Items:
 
Tax Applicable to Security Sales/Calls $ 156

$

46
$ 220 $ 193 $ 569 $ 713
 
Common Dividends $ 15,062

$

13,084
$ 13,099 $ 13,095 $ 41,256 $ 39,213
 
September September June March
EOP Share Data: 2011 2010 2011 2011
 
Book Value Per Share $ 19.38 $ 18.00 $ 18.43 $ 18.32
Tangible Book Value Per Share $ 11.71 $ 10.77 $ 11.24 $ 11.12
 
52-week High Common Stock Price $ 30.84 $ 31.99 $ 30.84 $ 31.99
Date 01/19/11 04/23/10 01/19/11 04/23/10
52-week Low Common Stock Price $ 18.78 $ 16.39 $ 22.09 $ 22.09
Date 09/22/11 11/20/09 08/24/10 08/24/10
 
EOP Shares Outstanding (Net of Treasury Stock): 50,205,691 43,597,507 43,645,485 43,645,650
 
Memorandum Items:
 
EOP Employees (full-time equivalent) 1,632 1,479 1,438 1,426
UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)
           
Three Months Ended Year to Date
September September June March September September
2011 2010 2011 2011 2011 2010
 
Selected Yields and Net Interest Margin:
 
Loans 5.14 % 5.30 % 5.18 % 5.24 % 5.18 % 5.32 %
Investment Securities 3.48 % 4.52 % 3.73 % 4.19 % 3.79 % 4.75 %
Money Market Investments/FFS 0.27 % 0.28 % 0.30 % 0.37 % 0.31 % 0.32 %
Average Earning Assets Yield 4.61 % 4.84 % 4.71 % 4.86 % 4.72 % 4.97 %
Interest-bearing Deposits 0.74 % 1.17 % 0.91 % 0.99 % 0.87 % 1.26 %
Short-term Borrowings 0.08 % 0.07 % 0.04 % 0.04 % 0.06 % 0.06 %
Long-term Borrowings 4.73 % 4.33 % 4.83 % 4.75 % 4.77 % 4.32 %
Average Liability Costs 0.95 % 1.50 % 1.13 % 1.20 % 1.08 % 1.58 %
Net Interest Spread 3.66 % 3.34 % 3.58 % 3.66 % 3.64 % 3.39 %
Net Interest Margin 3.87 % 3.60 % 3.83 % 3.92 % 3.87 % 3.65 %
 
Selected Financial Ratios:
 
Return on Average Common Equity 8.26 % 8.73 % 8.66 % 9.04 % 8.62 % 9.04 %
Return on Average Assets 0.95 % 0.91 % 0.98 % 1.02 % 0.98 % 0.93 %
Efficiency Ratio 50.44 % 53.24 % 52.03 % 53.64 % 51.94 % 53.15 %
 
September September June March
2011 2010 2011 2011
Loan / Deposit Ratio 90.35 % 93.43 % 91.68 % 91.44 %
Allowance for Loan Losses/ Loans, Net of Unearned Income 1.17 % 1.33 % 1.39 % 1.40 %
Allowance for Credit Losses (1)/ Loans, Net of Unearned Income 1.21 %

1.37
% 1.43 % 1.44 %
Nonaccrual Loans / Loans, Net of Unearned Income 0.86 % 1.10 % 0.98 % 1.20 %
90-Day Past Due Loans/ Loans, Net of Unearned Income 0.26 % 0.24 % 0.17 % 0.13 %
Non-performing Loans/ Loans, Net of Unearned Income 1.18 % 1.34 % 1.22 % 1.40 %
Non-performing Assets/ Total Assets 1.47 % 1.61 % 1.54 % 1.63 %
Primary Capital Ratio 12.11 % 11.21 % 12.20 % 12.04 %
Shareholders' Equity Ratio 11.34 % 10.36 % 11.27 % 11.12 %
Price / Book Ratio 1.04

x

 
1.38

x

 
1.33

x

 
1.45

x

 
Price / Earnings Ratio 12.45

x

 
15.68

x

 
15.32

x

 
16.20

x

 
 
Note: (1) 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)
         
 
September September December June March
Asset Quality Data: 2011 2010 2010 2011 2011
 
EOP Non-Accrual Loans $ 53,759 $ 58,302 $ 59,996 $ 51,237 $ 62,703
EOP 90-Day Past Due Loans 16,340 12,644 6,798 8,865 6,539
EOP Restructured Loans   3,624     438     437     3,886     3,716  
Total EOP Non-performing Loans $ 73,723 $ 71,384 $ 67,231 $ 63,988 $ 72,958
 
EOP Other Real Estate Owned   52,657     50,567     44,770     45,671     44,362  
Total EOP Non-performing Assets $ 126,380   $ 121,951   $ 112,001   $ 109,659   $ 117,320  
 
 
Three Months Ended Year to Date
September September June March September September
Allowance for Credit Losses:(1) 2011 2010 2011 2011 2011 2010
Beginning Balance $ 75,181 $ 71,361 $ 75,135 $ 75,039 $ 75,039 $ 70,010
Provision for Credit Losses (3)   3,573     6,123     4,689     4,590     12,852     19,391  
78,754 77,484 79,824 79,629 87,891 89,401
Gross Charge-offs (4,867 ) (5,420 ) (5,599 ) (4,741 ) (15,207 ) (18,340 )
Recoveries   1,607     742     956     247     2,810     1,745  
Net Charge-offs   (3,260 )   (4,678 )   (4,643 )   (4,494 )   (12,397 )   (16,595 )
Ending Balance $ 75,494   $ 72,806   $ 75,181   $ 75,135   $ 75,494   $ 72,806  
 
Notes:
(1) Includes allowances for loan losses and lending-related commitments.
(2) Restructured loans with an aggregate balance of $1,550, $3,886 and $1,067 at September 30, 2011, 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.

Copyright Business Wire 2010

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