United Bankshares, Inc. Announces Earnings For The Fourth Quarter And Year Of 2011

United Bankshares, Inc. (NASDAQ: UBSI), today reported earnings for the fourth quarter and the year of 2011. Earnings for the fourth quarter of 2011 were $20.3 million or $0.40 per diluted share while earnings for the year of 2011 were $75.6 million or $1.61 per diluted share.

Fourth quarter of 2011 results produced a return on average assets of 0.94% and a return on average equity of 8.17%. For the year of 2011, United’s return on average assets was 0.97% while the return on average equity was 8.50%. 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 0.79% and average return on equity of 7.37% for the first nine months of 2011.

The results for the fourth quarter and year of 2011 included before-tax, other-than-temporary impairment charges of $6.3 million and $20.4 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 fourth quarter and year 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 fourth quarter of 2010 were $19.3 million or $0.44 per diluted share while earnings for the year of 2010 were $71.9 million or $1.65 per diluted share. The results for the fourth quarter and year of 2010 included before-tax, other-than-temporary impairment charges of $5.4 million and $9.8 million, respectively, on certain investment securities. In addition, United recovered funds from its insurance carrier in the amount of $15.0 million during the fourth quarter of 2010 related to claims it made under its insurance policies for losses United incurred as a result of fraudulent loans previously charged-off in 2009. The $15.0 million of insurance proceeds were recorded as a recovery within United’s allowance for loan losses which resulted in a negative provision for loan losses of $5.6 million for the fourth quarter of 2010 and a provision for loan losses of $13.8 million for the year of 2010. United’s annualized returns on average assets and average equity were 1.03% and 9.64%, respectively, for the fourth quarter of 2010 while the returns on average assets and average equity was 0.95% and 9.19%, respectively, for the year 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 1.28% at December 31, 2011 compares favorably to the most recently reported percentage of 3.65% at September 30, 2011 for United’s Federal Reserve peer group. At December 31, 2011, nonperforming loans were $79.7 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 December 31, 2011, the allowance for loan losses was $73.9 million or 1.18% 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 92.7% and 108.6% at December 31, 2011 and December 31, 2010, respectively. The coverage ratio for United’s Federal Reserve peer group was 88.6% at September 30, 2011. The declines in the ratios at December 31, 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 $131.4 million, including OREO of $51.8 million at December 31, 2011, represented 1.56% of total assets which also compares favorably to the most recently reported percentage of 3.10% at September 30, 2011 for United’s Federal Reserve peer group.

United continues to be well-capitalized based on all regulatory guidelines. United’s estimated risk-based capital ratio is 13.8% at December 31, 2011 while its Tier I capital and leverage ratios are 12.6% and 10.2%, 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 fourth quarter of 2011, United’s Board of Directors declared a cash dividend of $0.31 per share. The 2011 dividend of $1.21 per share represented the 38th consecutive year of dividend increases for United shareholders. Based on its dividend paying history, United was added to the S&P High Yield Dividends Aristocrats® Index during the fourth quarter of 2011. This index measures the performance of the 60 highest dividend yielding S&P Composite 1500® Index constituents that have increased dividends every year for at least 25 consecutive years. United is one of only two major banking companies in the U.S. to have achieved such a record.

“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 fourth quarter of 2011 was $73.7 million, an increase of $13.8 million or 23% from the fourth 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 $953.6 million or 14% from the fourth quarter of 2010. Average net loans increased $941.8 million or 18% for the fourth quarter of 2011. In addition, the average cost of funds declined 45 basis points from the fourth quarter of 2010. Partially offsetting the increases to tax-equivalent net interest income for the fourth quarter of 2011 was a decline of 15 basis points in the average yield on earning assets for the fourth quarter of 2011 as compared to the same quarter in 2010. The net interest margin for the fourth quarter of 2011 was 3.88%, which was an increase of 26 basis points from a net interest margin of 3.62% for the fourth quarter of 2010.

Tax-equivalent net interest income for the year of 2011 was $267.3 million, an increase of $23.2 million or 10% from the year of 2010. This increase in tax-equivalent net interest income was primarily attributable to a decrease in average interest-bearing liabilities and an increase in average earning assets. Average interest-bearing liabilities declined $193.8 million or 3% due mainly to the net repayment of approximately $360 million in Federal Home Loan Bank advances towards the end of 2010 and the beginning of 2011. Average earning assets increased $191.1 million or 3% from the year of 2010 due mainly to the Centra merger. Average net loans increased $246.6 million or 5% for the year of 2011 while average investments decreased $89.9 million or 10%. In addition, the average cost of funds declined 49 basis points from the year of 2010. Partially offsetting the increases to tax-equivalent net interest income for the year of 2011 was a decline of 23 basis points in the average yield on earning assets for the year of 2011 as compared to the year of 2010. The net interest margin for the year of 2011 was 3.87%, which was an increase of 23 basis points from a net interest margin of 3.64% for the year of 2010.

On a linked-quarter basis, United’s tax-equivalent net interest income for the fourth quarter of 2011 increased $1.2 million or 2% from the third quarter of 2011 due mainly to an increase in average earning assets from the Centra merger. Average earning assets increased $91.3 million or 1% during the quarter. Average net loans increased $87.2 million or 1% while average short-term investments increased $16.2 million or 3% for the quarter. Average investments declined $12.1 million or 1% to partially offset the increase in average net loans and short-term investments. The fourth quarter of 2011 average yield on earning assets declined 2 basis points while the average cost of funds decreased 3 basis points from the third quarter of 2011. The net interest margin of 3.88% for the fourth quarter of 2011 was an increase of one basis point from the net interest margin of 3.87% for the third quarter of 2011.

For the quarter ended December 31, 2011, the provision for loan losses was $4.3 million while the provision for the year of 2011 was $17.1 million. As previously mentioned, United recovered funds from its insurance carrier in the amount of $15.0 million during the fourth quarter of 2010 related to claims it made under its insurance policies for losses United incurred as a result of fraudulent loans previously charged-off in 2009. The $15.0 million of insurance proceeds were recorded as a recovery within United’s allowance for loan losses. As a result, a negative provision for loan losses of $5.6 million was recorded for the fourth quarter of 2010 and a provision for loan losses of $13.8 million was recorded for the year of 2010. Net charge-offs were $3.9 million and $16.3 million for the fourth quarter and year of 2011, respectively. The $15.0 million recovery in the fourth quarter of 2010 resulted in net recoveries of $7.9 million for the fourth quarter of 2010. Net charge-offs were $8.8 million for the year of 2010. Annualized net charge-offs as a percentage of average loans were 0.25% and 0.29% for the fourth quarter and year 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 nine months of 2011.

Noninterest income for the fourth quarter of 2011 was $11.9 million, which was a decrease of $1.5 million from the fourth quarter of 2010. Included in noninterest income for the fourth quarter of 2011 were before-tax, other-than-temporary impairment charges of $6.3 million on certain investment securities. Included in noninterest income for the fourth quarter of 2010 were before-tax, other-than-temporary impairment charges of $5.4 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 decreased $545 thousand or 3% from the fourth quarter of 2010. This decrease for the fourth quarter of 2011 was due primarily to decreases of $759 thousand in income from derivatives not in hedge relationships due to a change in the fair value, $381 thousand in fees from bankcard services due mainly to the sale of United’s merchant business in the fourth quarter of 2010 and $373 thousand in fees from trust and brokerage services due to a decline in volume. 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 were increases of $800 thousand in fees from deposit services and $161 thousand in income from bank-owned life insurance policies. These increases were primarily due to the Centra merger.

Noninterest income for the year of 2011 was $50.8 million, which was a decrease of $11.4 million from the year of 2010. Included in noninterest income for the year 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 $20.4 million on certain investment securities. Included in noninterest income for the year 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 $9.8 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, decreasing $337 thousand or less than 1%. This slight decrease for the year of 2011 was due primarily to decreases of $1.9 million in income from derivatives not in hedge relationships due to a change in the fair value, $1.1 million in fees from bankcard services due mainly to the sale of United’s merchant business in the fourth quarter of 2010, and $294 thousand in fees from trust and brokerage services due to a decline in volume. 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 were increases of $1.8 million in fees from deposit services, $613 thousand in income from bank-owned life insurance policies and $290 thousand in mortgage banking income due to the Centra merger.

On a linked-quarter basis, noninterest income for the fourth quarter of 2011 increased $896 thousand from the third quarter of 2011. Included in the results for the fourth quarter and third quarter of 2011 were noncash, before-tax, other-than-temporary impairment charges of $6.3 million and $7.9 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 decreased $245 thousand or 1% on a linked-quarter basis due primarily to decreases of $205 thousand in income from bank-owned life insurance policies due to a decrease in the cash surrender values and $138 thousand in income from derivatives not in hedge relationships due to a change in the fair value. As previously mentioned, 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 fourth quarter of 2011 was $50.0 million, an increase of $654 thousand or 1% from the fourth quarter of 2010 due primarily to increases of $1.6 million in employee compensation, $956 thousand in equipment expenses, $904 thousand in net occupancy expenses, $693 thousand in employee benefits and $360 thousand in data processing fees. These increases were due mainly to the additional employees, offices, equipment and data processing from the Centra merger. Partially offsetting the increases were decreases of $3.0 million in other real estate owned (OREO) expense due to fewer declines in the fair values of properties and losses on sales, $884 thousand in FDIC insurance expense due to lower premiums and $646 thousand in bankcard processing expense due mainly to the sale of United’s merchant business in the fourth quarter of 2010.

Noninterest expense for the year of 2011 was $184.0 million which was an increase $1.8 million or 1% from the year of 2010. This increase was due mainly to increases of $4.0 million in employee compensation, $2.0 million in equipment expenses, $1.4 million in net occupancy expenses, $817 thousand in data processing fees and $609 thousand in employee benefits. These increases were due mainly to the additional employees, offices, equipment and data processing from the Centra merger. Partially offsetting these increases were decreases of $4.1 million in OREO costs due mainly to fewer declines in the fair value of OREO properties, $2.2 million in bankcard processing expense due mainly to the sale of United’s merchant business in the fourth quarter of 2010, $1.9 million in the expense from derivatives not in hedge relationships due to a change in the fair value and $1.2 million in FDIC insurance expense due to lower premiums. 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 fourth quarter of 2011 increased $1.2 million or 2% from the third quarter of 2011 due primarily to increases of $786 thousand in employee compensation due to higher commissions and incentives, merger expenses of $442 thousand and $405 thousand in equipment expense due to increased depreciation. Partially offsetting these increases was a decrease of $812 thousand in FDIC insurance expense due to lower premiums.

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 December 31, 2011 consolidated financial statements on Form 10-K. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of December 31, 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 Year Ended
December 31

2011
  December 31

2010
December 31

2011
December 31

2010
EARNINGS SUMMARY:
Interest income, taxable equivalent $ 87,261 $ 78,623 $ 323,109 $ 329,288
Interest expense 13,537 18,647 55,794 85,196
Net interest income, taxable equivalent 73,724 59,976 267,315 244,092
Taxable equivalent adjustment 1,732 1,415 6,587 5,906
Net interest income 71,992 58,561 260,728 238,186
Provision for loan losses 4,268 (5,618 ) 17,141 13,773
Noninterest income 11,874 13,356 50,837 62,203
Noninterest expenses 50,029 49,375 184,048 182,212
Income taxes 9,312 8,870 34,766 32,457
Net income $ 20,257 $ 19,290 $ 75,610 $ 71,947
 
PER COMMON SHARE:
Net income:
Basic $ 0.40 $ 0.44 $ 1.62 $ 1.65
Diluted 0.40 0.44 1.61 1.65
Cash dividends $ 0.31 $ 0.30 1.21 1.20
Book value 19.29 18.18
Closing market price $ 28.27 $ 29.20
Common shares outstanding:
Actual at period end, net of treasury shares 50,212,948 43,621,635
Weighted average- basic 50,207,410 43,606,591 46,803,432 43,547,965
Weighted average- diluted 50,235,812 43,677,279 46,837,363 43,625,183
 
FINANCIAL RATIOS:
Return on average assets 0.94 % 1.03 % 0.97 % 0.95 %
Return on average shareholders’ equity 8.17 % 9.64 % 8.50 % 9.19 %
Average equity to average assets 11.56 % 10.69 % 11.44 % 10.39 %
Net interest margin 3.88 % 3.62 % 3.87 % 3.64 %
 
December 31

2011
December 31

2010
December 31

2009
September 30

2011
PERIOD END BALANCES:
Assets $ 8,451,470 $ 7,155,719 $ 7,805,101 $ 8,577,886
Earning assets 7,498,333 6,334,914 6,956,322 7,607,225
Loans, net of unearned income 6,236,710 5,260,326 5,736,809 6,259,228
Loans held for sale 3,902 6,869 5,284 7,378
Investment securities 824,219 794,715 966,920 871,898
Total deposits 6,819,010 5,713,534 5,971,100 6,927,975
Shareholders’ equity 968,844 793,012 761,550 972,753
 

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
December December September June March
2011 2010 2011 2011 2011
 
Interest & Loan Fees Income $ 85,529 $ 77,208 $ 84,701 $ 72,435 $ 73,857
Tax equivalent adjustment   1,732     1,415     1,765     1,637     1,453  
Interest & Fees Income (FTE) 87,261 78,623 86,466 74,072 75,310
Interest Expense   13,537     18,647     13,949     13,814     14,494  
Net Interest Income (FTE) 73,724 59,976 72,517 60,258 60,816
 
Provision for Loan Losses 4,268 (5,618 ) 3,637 4,800 4,436
 
Non-Interest Income:
Fees from trust & brokerage services 3,316 3,689 3,280 3,437 3,310
Fees from deposit services 10,581 9,781 10,462 10,341 9,631
Bankcard fees and merchant discounts 1,192 1,573 1,237 683 555
Other charges, commissions, and fees 559 562 455 381 454
Income from bank owned life insurance 1,339 1,178 1,544 1,228 1,175
Mortgage banking income 382 303 205 131 234
Other non-interest revenue 841 1,669 1,272 599 851
Net other-than-temporary impairment losses (6,286 ) (5,369 ) (7,922 ) (4,096 ) (2,110 )
Net (losses) gains on sales/calls of

investment securities
 

(50

)
 

(30

)
 

445
    630     551  
Total Non-Interest Income   11,874     13,356     10,978     13,334     14,651  
 
Non-Interest Expense:
Employee compensation 17,756 16,202 16,970 15,015 14,870
Employee benefits 4,488 3,795 4,361 4,131 4,378
Net occupancy 5,018 4,114 5,051 4,140 4,387
Other expenses 18,560 17,611 17,194 14,477 15,347
Amortization of intangibles 832 411 860 354 383
OREO expense 1,879 4,862 2,129 1,233 1,767
FDIC expense   1,496     2,380     2,308     2,327     2,337  
Total Non-Interest Expense   50,029     49,375     48,873     41,677     43,469  
 
Income Before Income Taxes (FTE) 31,301 29,575 30,985 27,115 27,562
 
Tax equivalent adjustment   1,732     1,415     1,765     1,637     1,453  
 
Income Before Income Taxes 29,569 28,160 29,220 25,478 26,109
 
Income taxes   9,312     8,870     9,204     8,026     8,224  
 
Net Income $ 20,257   $ 19,290   $ 20,016   $ 17,452   $ 17,885  
 
MEMO: Effective Tax Rate 31.49 % 31.50 % 31.50 % 31.50 % 31.50 %
 
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
Year Ended
December December December December
2011 2010 2009 2008
 
Interest & Loan Fees Income $316,522 $323,382 $365,845 $429,911
Tax equivalent adjustment 6,587   5,906   11,199   14,229  
Interest & Fees Income (FTE) 323,109 329,288 377,044 444,140
Interest Expense 55,794   85,196   120,374   177,119  
Net Interest Income (FTE) 267,315 244,092 256,670 267,021
 
Provision for Loan Losses 17,141 13,773 46,065 25,155
 
Non-Interest Income:
Fees from trust & brokerage services 13,343 13,637 13,065 16,582
Fees from deposit services 41,015 39,220 40,289 39,189
Bankcard fees and merchant discounts 3,667 4,786 4,155 5,815
Other charges, commissions, and fees 1,849 1,918 1,906 1,932
Income from bank owned life insurance 5,286 4,673 3,416 4,093
Mortgage banking income 952 662 608 385
Other non-interest revenue 3,563 5,116 5,236 8,725
Net other-than-temporary impairment losses (20,414 ) (9,815 ) (15,020 ) (10,489 )
Net gains on sales/calls of investment securities 1,576   2,006   315   1,071  
Total Non-Interest Income 50,837   62,203   53,970   67,303  
 
Non-Interest Expense:
Employee compensation 64,611 60,564 58,901 61,347
Employee benefits 17,358 16,749 19,192 13,680
Net occupancy 18,596 17,246 17,018 16,682
Other expenses 65,578 64,954 62,791 72,239
Amortization of intangibles 2,429 1,884 2,561 3,494
OREO expense 7,008 11,131 5,487 2,484
FDIC expense 8,468   9,684   9,177   1,147  
Total Non-Interest Expense 184,048   182,212   175,127   171,073  
 
Income Before Income Taxes (FTE) 116,963 110,310 89,448 138,096
 
Tax equivalent adjustment 6,587   5,906   11,199   14,229  
 
Income Before Income Taxes 110,376 104,404 78,249 123,867
 
Income taxes 34,766   32,457   10,951   36,913  
 
Net Income $75,610   $71,947   $67,298   $86,954  
 
MEMO: Effective Tax Rate 31.50 % 31.09 % 14.00 % 29.80 %
 
UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)
       
Consolidated Balance Sheets
December 31 December 31
2011 2010 December 31 December 31 December 31
Q-T-D Average Q-T-D Average 2011 2010 2009
 
Cash & Cash Equivalents $669,533 $636,467 $636,003 $461,389 $449,767
 
Securities Available for Sale 692,540 704,758 696,518 653,276 811,777
Securities Held to Maturity 60,415 67,253 59,289 67,036 77,421
Other Investment Securities 69,096 76,690 68,412 74,403 77,722
Total Securities 822,051 848,701 824,219 794,715 966,920
Total Cash and Securities 1,491,584 1,485,168 1,460,222 1,256,104 1,416,687
 
Loans Held for Sale 5,582 6,470 3,902 6,869 5,284
 
Commercial Loans 4,377,276 3,550,037 4,378,345 3,533,559 3,801,254
Mortgage Loans 1,565,638 1,489,752 1,562,838 1,459,286 1,606,560
Consumer Loans 315,022 272,514 299,030 270,506 332,964
 
Gross Loans 6,257,936 5,312,303 6,240,213 5,263,351 5,740,778
 
Unearned Income (5,263) (3,089) (3,503) (3,025) (3,969)
 
Loans, Net of Unearned Income 6,252,673 5,309,214 6,236,710 5,260,326 5,736,809
 
Allowance for Loan Losses (73,562) (72,759) (73,874) (73,033) (67,853)
 
Goodwill 372,902 311,831 371,693 311,765 312,069
Other Intangibles 11,641 3,149 12,950 2,940 4,823
Total Intangibles 384,543 314,980 384,643 314,705 316,892
 
Real Estate Owned 51,729 48,939 51,760 44,770 40,058
Other Assets 399,503 336,501 388,107 345,978 357,224
Total Assets $8,512,052 $7,428,513 $8,451,470 $7,155,719 $7,805,101
 
MEMO: Earning Assets $7,551,646 $6,598,071 $7,498,333 $6,334,914 $6,956,322
 
Interest-bearing Deposits $5,227,649 $4,474,950 $5,199,848 $4,510,279 $4,862,943
Noninterest-bearing Deposits 1,614,185 1,203,002 1,619,162 1,203,255 1,108,157
Total Deposits 6,841,834 5,677,952 6,819,010 5,713,534 5,971,100
 
Short-term Borrowings 285,747 288,873 254,766 193,214 222,944
Long-term Borrowings 353,220 620,156 345,366 386,458 771,935
Total Borrowings 638,967 909,029 600,132 579,672 994,879
 
Other Liabilities 47,436 47,614 63,484 69,501 77,572
Total Liabilities 7,528,237 6,634,595 7,482,626 6,362,707 7,043,551
 
Preferred Equity --- --- --- --- ---
Common Equity 983,815 793,918 968,844 793,012 761,550
Total Shareholders' Equity 983,815 793,918 968,844 793,012 761,550
 
Total Liabilities & Equity $8,512,052 $7,428,513 $8,451,470 $7,155,719 $7,805,101
 
MEMO: Interest-bearing Liabilities $5,866,616 $5,383,979 $5,799,980 $5,089,951 $5,857,822
 
UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)
       
Three Months Ended
December December September June March
Quarterly Share Data: 2011 2010 2011 2011 2011
 
Earnings Per Share:
Basic $ 0.40 $ 0.44 $ 0.40 $ 0.40 $ 0.41
Diluted $ 0.40 $ 0.44 $ 0.40 $ 0.40 $ 0.41
 
Common Dividend Declared Per Share $ 0.31 $ 0.30 $ 0.30 $ 0.30 $ 0.30
 
High Common Stock Price $ 29.29 $ 30.25 $ 25.21 $ 27.46 $ 30.84
Low Common Stock Price $ 19.06 $ 24.15 $ 18.78 $ 22.36 $ 25.66
 
Average Shares Outstanding (Net of Treasury Stock):
Basic 50,207,410 43,606,591 49,628,087 43,645,541 43,629,364
Diluted 50,238,812 43,677,279 49,636,382 43,676,407 43,700,436
 
Memorandum Items:
 
Tax Applicable to Security Sales/Calls $ (18 ) $ (11 ) $ 156 $ 220 $ 193
 
Common Dividends $ 15,571 $ 13,087 $ 15,062 $ 13,099 $ 13,095
 
Dividend Payout Ratio 76.87 % 67.84 % 75.25 % 75.06 % 73.22 %
 
Year Ended
December December December December
YTD Share Data: 2011 2010 2009 2008
 
Earnings Per Share:
Basic $ 1.62 $ 1.65 $ 1.55 $ 2.01
Diluted $ 1.61 $ 1.65 $ 1.55 $ 2.00
 
Common Dividend Declared Per Share $ 1.21 $ 1.20 $ 1.17 $ 1.16
 
Average Shares Outstanding (Net of Treasury Stock):
Basic 46,803,432 43,547,965 43,410,431 43,286,894
Diluted 46,837,363 43,625,183 43,456,889 43,434,083
 
Memorandum Items:
 
Tax Applicable to Security Sales/Calls $ 552 $ 702 $ 110 $ 375
 
Common Dividends $ 56,827 $ 52,300 $ 50,837 $ 50,231
 
Dividend Payout Ratio 75.16 % 72.69 % 75.54 % 57.77 %
 
EOP Employees (full-time equivalent) 1,619 1,451 1,477 1,531
 
UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)
       
Three Months Ended
December December September June March
EOP Share Data: 2011 2010 2011 2011 2011
 
Book Value Per Share $19.29 $18.18 $ 19.38 $ 18.43 $ 18.32
Tangible Book Value Per Share $11.63 $10.96 $ 11.71 $ 11.24 $ 11.12
 
52-week High Common Stock Price $30.84 $31.99 $ 30.84 $ 30.84 $ 31.99
Date 01/19/11 04/23/10 01/19/11 01/19/11 04/23/10
52-week Low Common Stock Price $18.78 $20.15 $ 18.78 $ 22.09 $ 22.09
Date 09/22/11 01/06/10 09/22/11 08/24/10 08/24/10
 
EOP Shares Outstanding (Net of Treasury Stock): 50,212,948 43,621,635 50,205,691 43,645,485 43,645,650
 
 
Three Months Ended
December December September June March
2011 2010 2011 2011 2011
Selected Yields and Net Interest Margin:
 
Net Loans 5.18% 5.24% 5.14% 5.18% 5.24%
Investment Securities 3.08% 4.33% 3.48% 3.73% 4.19%
Money Market Investments/FFS 0.23% 0.28% 0.27% 0.30% 0.37%
Average Earning Assets Yield 4.59% 4.74% 4.61% 4.71% 4.86%
Interest-bearing Deposits 0.69% 1.06% 0.74% 0.91% 0.99%
Short-term Borrowings 0.08% 0.04% 0.08% 0.04% 0.04%
Long-term Borrowings 4.85% 4.24% 4.73% 4.83% 4.75%
Average Liability Costs 0.92% 1.37% 0.95% 1.13% 1.20%
Net Interest Spread 3.67% 3.37% 3.66% 3.58% 3.66%
Net Interest Margin 3.88% 3.62% 3.87% 3.83% 3.92%
 
Selected Financial Ratios:
 
Return on Average Common Equity 8.17% 9.64% 8.26% 8.66% 9.04%
Return on Average Assets 0.94% 1.03% 0.95% 0.98% 1.02%
Efficiency Ratio 51.47% 56.02% 50.44% 52.03% 53.64%
 
UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)
     
Year Ended
December December December December
2011 2010 2009 2008
Selected Yields and Net Interest Margin:
Net Loans 5.18% 5.30% 5.46% 6.34%
Investment Securities 3.61% 4.65% 5.08% 5.46%
Money Market Investments/FFS 0.28% 0.31% 0.18% 1.94%
Average Earning Assets Yield 4.68% 4.91% 5.27% 6.15%
Interest-bearing Deposits 0.82% 1.21% 1.75% 2.71%
Short-term Borrowings 0.06% 0.06% 0.14% 1.69%
Long-term Borrowings 4.79% 4.30% 4.24% 4.49%
Average Liability Costs 1.04% 1.53% 1.98% 2.81%
Net Interest Spread 3.64% 3.38% 3.29% 3.34%
Net Interest Margin 3.87% 3.64% 3.59% 3.70%
 
Selected Financial Ratios:
Return on Average Common Equity 8.50% 9.19% 8.81% 11.12%
Return on Average Assets 0.97% 0.95% 0.85% 1.09%
Loan / Deposit Ratio 91.46% 92.07% 96.08% 106.48%
Allowance for Loan Losses/ Loans, Net of Unearned Income 1.18% 1.39% 1.18% 1.02%
Allowance for Credit Losses (1)/ Loans, Net of Unearned Income 1.21% 1.43% 1.22% 1.06%
Nonaccrual Loans / Loans, Net of Unearned Income 0.96% 1.14% 0.89% 0.70%
90-Day Past Due Loans/ Loans, Net of Unearned Income 0.26% 0.13% 0.35% 0.20%
Non-performing Loans/ Loans, Net of Unearned Income 1.28% 1.28% 1.26% 0.90%
Non-performing Assets/ Total Assets 1.56% 1.57% 1.44% 0.91%
Primary Capital Ratio 12.25% 12.00% 10.56% 9.80%
Shareholders' Equity Ratio 11.46% 11.08% 9.76% 9.09%
Price / Book Ratio 1.47 x 1.61 x 1.14 x 1.96 x
Price / Earnings Ratio 17.51 x 17.71 x 12.90 x 16.59 x
Efficiency Ratio 51.81% 53.87% 51.35% 48.03%
 
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)
       
December December September June March
Asset Quality Data: 2011 2010 2011 2011 2011
 
EOP Non-Accrual Loans $ 59,892 $ 59,996 $ 53,759 $ 51,237 $ 62,703
EOP 90-Day Past Due Loans 16,179 6,798 16,340 8,865 6,539
EOP Restructured Loans   3,592     437     3,624     3,886     3,716  
Total EOP Non-performing Loans $ 79,663 $ 67,231 $ 73,723 $ 63,988 $ 72,958
 
EOP Other Real Estate & Assets Owned   51,760     44,770     52,657     45,671     44,362  
Total EOP Non-performing Assets $ 131,423   $ 112,001   $ 126,380   $ 109,659   $ 117,320  
 
 
Three Months Ended Year Ended
December December December December December
Allowance for Credit Losses: (1) 2011 2010 2011 2010 2009
Beginning Balance $ 75,494 $ 72,806 $ 75,039 $ 70,010 $ 63,603
Provision for Credit Losses (3)   4,136     (5,618 )   16,988     13,773     46,065  
79,630 67,188 92,027 83,783 109,668
Gross Charge-offs (4,398 ) (7,422 ) (19,605 ) (25,762 ) (41,077 )
Recoveries   495     15,273     3,305     17,018     1,419  
Net (Charge-offs) Recoveries   (3,903 )   7,851     (16,300 )   (8,744 )   (39,658 )
Ending Balance $ 75,727   $ 75,039   $ 75,727   $ 75,039   $ 70,010  
 
Notes:
(1) Includes allowances for loan losses and lending-related commitments.
(2) Restructured loans with an aggregate balance of $1,528, $1,549, $3,886 and $1,067 at December 31, 2011, 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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