United Bankshares, Inc. Increases Earnings For The Third Quarter And First Nine Months Of 2013

United Bankshares, Inc. (NASDAQ: UBSI), today reported earnings for the third quarter and the first nine months of 2013. Earnings for the third quarter of 2013 were $22.2 million or $0.44 per diluted share, an increase from earnings of $19.3 million or $0.38 per diluted share for the third quarter of 2012. Earnings for the first nine months of 2013 were $66.0 million or $1.31 per diluted share, up from earnings of $61.4 million or $1.22 per diluted share for the first nine months of 2012.

“Third quarter and year-to-date 2013 earnings continue to be strong,” 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, and our asset quality outperforms our peers. United is one of only two major banking companies in the USA to have increased its dividend to shareholders for 39 consecutive years.”

Third quarter of 2013 results produced a return on average assets of 1.04% and a return on average equity of 8.64%, respectively. For the first nine months of 2013, United’s return on average assets was 1.05% while the return on average equity was 8.72%. United’s annualized returns on average assets and average equity were 0.92% and 7.76%, respectively, for the third quarter of 2012 while the returns on average assets and average equity was 0.97% and 8.32%, respectively, for the first nine months of 2012.

The results for the first nine months of 2013 included noncash, before-tax, other-than-temporary impairment charges of $971 thousand on certain investment securities. No noncash, before-tax, other-than-temporary impairment charges were recognized during the third quarter of 2013. Included in the results for the third quarter and first nine months of 2012 were noncash, before-tax, other-than-temporary impairment charges of $2.3 million and $5.4 million, respectively, on certain investment securities. The results for the third quarter and first nine months of 2012 also included an accrual of $3.3 million with respect to a settlement of claims asserted in class actions against United Bank, Inc. of West Virginia.

United’s asset quality continues to outperform its peers. United’s percentage of nonperforming loans to loans, net of unearned income of 1.26% at September 30, 2013 compares favorably to the most recently reported percentage of 2.13% at June 30, 2013 for United’s Federal Reserve peer group. At September 30, 2013, nonperforming loans were $83.1 million, down from nonperforming loans of $92.8 million or 1.43% of loans, net of unearned income, at December 31, 2012. As of September 30, 2013, the allowance for loan losses was $74.6 million or 1.13% of loans, net of unearned income, which was comparable to $73.9 million or 1.13% of loans, net of unearned income, at December 31, 2012. Total nonperforming assets of $125.7 million, including OREO of $42.5 million at September 30, 2013, represented 1.48% of total assets which also compares favorably to the most recently reported percentage of 1.73% at June 30, 2013 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 13.8% at September 30, 2013 while its estimated Tier I capital and leverage ratios are 12.6% and 10.8%, 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%.

Tax-equivalent net interest income for the third quarter of 2013 was $69.1 million, a decrease of $2.4 million or 3% from the third quarter of 2012 due mainly to a decrease in the average yield on earning assets. The third quarter of 2013 average yield on earning assets decreased 36 basis points from the third quarter of 2012. Partially offsetting this decrease to tax-equivalent net interest income for the third quarter of 2013 was an increase of $167.4 million or 2% in average earning assets from the third quarter of 2012. Average net loans and average investment securities increased $181.9 million or 3% and $75.2 million or 10%, respectively, while short-term investments declined $89.7 million or 27%. In addition, the average cost of funds for the third quarter of 2013 declined 17 basis points as compared to the third quarter of 2012. The net interest margin for the third quarter of 2013 was 3.65%, which was a decrease of 22 basis points from a net interest margin of 3.87% for the third quarter of 2012.

Tax-equivalent net interest income for the first nine months of 2013 was $205.2 million, a decrease of $7.6 million or 4% from the first nine months of 2012 due mainly to a decrease in the average yield on earning assets. The first nine months of 2013 average yield on earning assets decreased 26 basis points from the first nine months of 2012. In addition, average earning assets were flat, decreasing $24.1 million or less than 1% from the first nine months of 2012 as average short-term investments declined $261.3 million or 53%. Average net loans did increase $233.8 million or 4% for the first nine months of 2013 from the first nine months of 2012 to somewhat mitigate the decrease in average short-term investments. Average investment securities were relatively flat, increasing only $3.4 million or less than 1%. Partially offsetting the decreases to tax-equivalent net interest income for the first nine months of 2013 was a decline of 18 basis points in the average cost of funds as compared to the first nine months of 2012. The net interest margin for the first nine months of 2013 was 3.68%, which was a decrease of 12 basis points from a net interest margin of 3.80% for the first nine months of 2012.

On a linked-quarter basis, United’s tax-equivalent net interest income for the third quarter of 2013 increased $1.4 million or 2% due mainly to an increase in average earning assets and a decrease in the average cost of funds. Average earning assets increased $106.3 million or 1% during the quarter. Average net loans were flat for the quarter, increasing $50.7 million or less than 1%. Average investment securities increased $53.7 million or 7% while average short-term investments were flat, increasing $1.8 million or less than 1% for the quarter. The third quarter of 2013 average cost of funds decreased 3 basis points while the average yield on earning assets also decreased 3 basis points from the second quarter of 2013. The net interest margin of 3.65% for the third quarter of 2013 was the same as the net interest margin for the second quarter of 2013.

For the quarters ended September 30, 2013 and 2012, the provision for loan losses was $4.8 million and $4.3 million, respectively, while the provision for the first nine months of 2013 was $14.9 million as compared to $11.9 million for the first nine months of 2012. Net charge-offs were $4.8 million and $4.0 million for the third quarter of 2013 and 2012, respectively, as compared to $14.3 million and $12.0 million for the first nine months of 2013 and 2012. Annualized net charge-offs as a percentage of average loans were 0.29% for both the third quarter and first nine months of 2013. United’s most recently reported Federal Reserve peer group’s net charge-offs to average loans percentage was 0.31% for the second quarter of 2013.

Noninterest income for the third quarter of 2013 was $18.3 million, which was an increase of $1.7 million from the third quarter of 2012. No noncash, before-tax, other-than-temporary impairment charges were recognized during the third quarter of 2013. Included in noninterest income for the third quarter of 2012 were noncash, before-tax, other-than-temporary impairment charges of $2.3 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 for the third quarter of 2013 decreased $588 thousand or 3% from the third quarter of 2012. This decrease for the third quarter of 2013 was due primarily to small decreases in several noninterest income items, none of which were individually significant.

Noninterest income for the first nine months of 2013 was $55.8 million, which was an increase of $6.2 million from the first nine months of 2012. Included in noninterest income for the first nine months of 2013 were noncash, before-tax, other-than-temporary impairment charges of $971 thousand on certain investment securities as compared to noncash, before-tax other-than-temporary impairment charges of $5.4 million on certain investment securities for the first nine months of 2012. 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 for the first nine months of 2013 increased $1.4 million or 3% from the first nine months of 2012. This increase for the first nine months of 2013 was due primarily to increases of $921 thousand in income from bank-owned life insurance policies due to a death benefit, $689 thousand in mortgage banking income due to increased sales of mortgage loans in the secondary market and $448 thousand in fees from bankcard services due to increased volume. Partially offsetting these increases was a decrease of $1.1 million in fees from deposit services due to lower overdraft fee income.

On a linked-quarter basis, noninterest income for the third quarter of 2013 decreased $764 thousand or 4% from the second quarter of 2013. This decrease for the third quarter of 2013 was due primarily to decreases of $364 thousand in income from trust and brokerage services due to a decrease in volume and the value of assets under management and $285 thousand in income from derivatives not in hedge relationships due to a change in the fair value. No significant noncash, other-than-temporary impairment charges or net gains from sales and calls of investment securities were included in the results for the third quarter and second quarter of 2013.

Noninterest expense for the third quarter of 2013 was $48.6 million, a decrease of $5.3 million or 10% from the third quarter of 2012. Included in the results for the third quarter of 2012 was the previously mentioned litigation settlement accrual of $3.3 million. In addition, data processing expense declined $795 thousand due to a change in servicers and other real estate owned (OREO) expense decreased $625 thousand as reductions to fair value declined.

Noninterest expense for the first nine months of 2013 was $145.4 million, a decrease of $10.0 million or 6% from the first nine months of 2012. Included in the results for the first nine months of 2012 was the litigation settlement accrual of $3.3 million. Otherwise, employee compensation for the first nine months of 2013 declined $2.3 million due to a reduction in employees from a merger of banking subsidiaries in 2012. In addition, other real estate owned (OREO) expense decreased $1.5 million as reductions to fair value and losses on sales declined, data processing expense declined $1.1 million due to a change in servicers, equipment expense decreased $1.0 million due mainly to a decline in maintenance costs from the first nine months of 2012. Partially offsetting these decreases was an increase of $1.2 million in employee benefits expense due mainly to higher pension costs. Also included in noninterest expense for the first nine months of 2013 was an increase in merger expenses of $805 thousand.

On a linked-quarter basis, noninterest expense for the third quarter of 2013 was flat from the second quarter of 2013, increasing $38 thousand or less than 1%. This slight increase was due primarily to increases of $312 thousand and $249 thousand in employee compensation and equipment expense, respectively. In addition, merger expenses increased $187 thousand from the second quarter of 2013. Virtually offsetting these increases was a decline of $795 thousand in other real estate owned (OREO) expense as reductions to fair value declined.

During the third quarter of 2013, United’s Board of Directors declared a cash dividend of $0.31 per share. United has increased its dividend to shareholders for 39 consecutive years. The annualized 2013 dividend of $1.24 equates to a yield above 4% based on recent UBSI market prices.

On January 30, 2013, United announced the signing of a definitive merger agreement with Virginia Commerce Bancorp, Inc. (“VCBI”) headquartered in Arlington, Virginia. VCBI has twenty-eight (28) banking offices, one residential mortgage origination office and one wealth management office located in the Northern Virginia suburbs of Washington, D.C. On September 11, 2013, United filed with the Securities and Exchange Commission a prospectus related to the merger under rule 424(b)(3) of the Securities Act of 1933. On October 17, 2013 and October 21, 2013, respectively, the merger was approved by the shareholders of VCBI and United, respectively. Consummation of the merger is still subject to the receipt of all required regulatory approvals as well as other customary conditions.

United has consolidated assets of approximately $8.5 billion with 114 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, 2013 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, 2013 and will adjust amounts preliminarily reported, if necessary.

Use of non-GAAP Financial Measures

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

Specifically, this press release contains certain references to financial measures identified as tax-equivalent (FTE) net interest income, noninterest income 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, tangible equity and tangible book value per share. Management believes these non-GAAP financial measures to be helpful in understanding United’s results of operations or financial position.

Net interest income is presented in this press release on a tax-equivalent basis. The tax-equivalent basis adjusts for the tax-favored status of income from certain loans and investments. Although this is a non-GAAP measure, United’s management believes this measure is more widely used within the financial services industry and provides better comparability of net interest income arising from taxable and tax-exempt sources. United uses this measure to monitor net interest income performance and to manage its balance sheet composition. The tax-equivalent adjustment combines amounts of interest income on federally nontaxable loans and investment securities using the statutory federal income tax rate of 35%.

GAAP total non-interest income results are adjusted for other-than-temporary impairment charges (OTTI) on certain investment securities and net gains or losses on the sale of securities. Management believes noninterest income without OTTI charges and net securities gains or losses is more indicative of United’s performance because it isolates income that is primarily customer relationship driven and is more indicative of normalized operations. In addition, these items can fluctuate greatly from quarter to quarter and are difficult to predict.

Tangible common equity is calculated as GAAP total shareholders’ equity minus total intangible assets . Tangible common equity can thus be considered the most conservative valuation of the company. Tangible common equity is also presented on a per common share basis. Management provides these amounts to facilitate the understanding of as well as to assess the quality and composition of United’s capital structure. By removing the effect of intangible assets that result from merger and acquisition activity, the “permanent” items of common equity are presented. These two measures, along with others, are used by management to analyze capital adequacy.

Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as reconciliation to that comparable GAAP financial measure can be found in the attached financial information tables to this press release. Investors should recognize that United’s presentation of these non-GAAP financial measures might not be comparable to similarly titled measures at other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and United strongly encourages a review of its condensed consolidated financial statements in their entirety.

Forward-Looking Statements

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

2013
    September 30

2012
September 30

2013
    September 30

2012
EARNINGS SUMMARY:        
Interest income, taxable equivalent (non-GAAP) $ 78,199 $ 82,888 $ 233,042 $ 249,010
Interest expense 9,075 11,322 27,860 36,194
Net interest income, taxable equivalent (non-GAAP) 69,124 71,566 205,182 212,816
Taxable equivalent adjustment 1,494 1,552 4,527 4,781
Net interest income (GAAP) 67,630 70,014 200,655 208,035
Provision for loan losses 4,777 4,346 14,924 11,915
Noninterest income 18,335 16,634 55,782 49,547
Noninterest expenses 48,585 53,869 145,381 155,383
Income taxes 10,433 9,099 30,164 28,891
Net income $ 22,170 $ 19,334 $ 65,968 $ 61,393
 
PER COMMON SHARE:
Net income:
Basic $ 0.44 $ 0.38 $ 1.31 $ 1.22
Diluted 0.44 0.38 1.31 1.22
Cash dividends $ 0.31 $ 0.31 0.93 0.93
Book value 20.19 19.66
Closing market price $ 28.98 $ 24.91
Common shares outstanding:
Actual at period end, net of treasury shares 50,400,944 50,275,998
Weighted average- basic 50,378,613 50,276,074 50,336,741 50,262,089
Weighted average- diluted 50,472,959 50,295,162 50,402,455 50,298,998
 
FINANCIAL RATIOS:
Return on average assets 1.04 % 0.92 % 1.05 % 0.97 %
Return on average shareholders’ equity 8.64 % 7.76 % 8.72 % 8.32 %
Average equity to average assets 12.05 % 11.92 % 12.09 % 11.72 %
Net interest margin 3.65 % 3.87 % 3.68 % 3.80 %
 
September 30

2013
    September 30

2012
December 31

2012
    June 30

2013
PERIOD END BALANCES:
Assets $ 8,513,818 $ 8,381,378 $ 8,420,013 $ 8,480,268
Earning assets 7,565,955 7,426,785 7,459,217 7,555,969
Loans, net of unearned income 6,595,495 6,422,613 6,511,416 6,567,178
Loans held for sale 3,760 12,905 17,762 8,364
Investment securities 859,269 766,713 729,402 813,760
Total deposits 6,605,634 6,753,924 6,752,986 6,577,836
Shareholders’ equity 1,017,711 988,429 992,251 1,006,058
 
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
2013 2012 2013 2013 2013 2012
 
Interest & Loan Fees Income (GAAP) $ 76,705 $ 81,336 $ 75,485 $ 76,325 $ 228,515 $ 244,229
Tax equivalent adjustment 1,494 1,552 1,509 1,524 4,527 4,781
Interest & Fees Income (FTE) (non-GAAP) 78,199 82,888 76,994 77,849 233,042 249,010
Interest Expense 9,075 11,322 9,282 9,503 27,860 36,194
Net Interest Income (FTE) (non-GAAP) 69,124 71,566 67,712 68,346 205,182 212,816
 
Provision for Loan Losses 4,777 4,346 4,960 5,187 14,924 11,915
 
Non-Interest Income:
Fees from trust & brokerage services 4,006 4,170 4,370 3,830 12,206 12,167
Fees from deposit services 10,341 10,521 10,208 9,624 30,173 31,226
Bankcard fees and merchant discounts 1,003 866 899 797 2,699 2,251
Other charges, commissions, and fees 599 513 626 561 1,786 1,690
Income from bank owned life insurance 1,138 1,247 1,185 2,389 4,712 3,791
Mortgage banking income 605 819 739 965 2,309 1,620
Other non-interest revenue 542 686 861 876 2,279 1,992
Net other-than-temporary impairment losses 0 (2,255) (137) (834) (971) (5,374)
Net gains on sales/calls of investment

securities

101

67

348
140

589

184
Total Non-Interest Income 18,335 16,634 19,099 18,348 55,782 49,547
 
Non-Interest Expense:
Employee compensation 17,269 17,258 16,957 16,604 50,830 53,130
Employee benefits 5,842 5,271 5,675 5,993 17,510 16,286
Net occupancy 4,931 5,060 4,821 5,191 14,943 15,423
Data processing 2,880 3,675 2,813 2,731 8,424 9,523
Amortization of intangibles 479 697 506 534 1,519 2,183
OREO expense 1,535 2,160 2,330 1,270 5,135 6,648
FDIC expense 1,539 1,489 1,564 1,559 4,662 4,539
Other expenses 14,110 18,259 13,881 14,367 42,358 47,651
Total Non-Interest Expense 48,585 53,869 48,547 48,249 145,381 155,383
 
Income Before Income Taxes (FTE) (non-GAAP) 34,097 29,985 33,304 33,258 100,659 95,065
 
Tax equivalent adjustment 1,494 1,552 1,509 1,524 4,527 4,781
 
Income Before Income Taxes (GAAP) 32,603 28,433 31,795 31,734 96,132 90,284
 
Taxes 10,433 9,099 9,576 10,155 30,164 28,891
 
Net Income $ 22,170 $ 19,334 $ 22,219 $ 21,579 $ 65,968 $ 61,393
 
MEMO: Effective Tax Rate 32.00% 32.00% 30.12% 32.00% 31.38% 32.00%
 

Note: Non-Interest Income excluding the results of noncash, other-than-temporary impairment charges as well as net gains and losses from sales and calls of

           investment securities (non-GAAP):
         
Total Non-Interest Income (GAAP) $ 18,335 $ 16,634 $ 19,099 $ 18,348 $ 55,782 $ 49,547
Less: Net other-than-temporary impairment losses (GAAP) 0 (2,255) (137) (834) (971) (5,374)

Less: Net gains on sales/calls of investment

  securities (GAAP)

101

67

348

140

589

184

Non-Interest Income excluding the results of noncash,

  other-than-temporary impairment charges as well as

  net gains and losses from sales and calls of investment

  securities   (non-GAAP)

 

 

 

$ 18,234

 

 

$ 18,822

 

 

$ 18,888

 

 

$ 19,042

 

 

$ 56,164

 

 

$ 54,737
 
UNITED BANKSHARES, INC. AND SUBSIDIARIES

Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)
                   
Consolidated Balance Sheets
September 30 September 30
2013 2012 September 30 December 31 September 30
Q-T-D Average Q-T-D Average 2013 2012 2012
 
Cash & Cash Equivalents $ 371,642 $ 475,549 $ 342,039 $ 432,077 $ 436,328
 
Securities Available for Sale 711,682 629,531 747,548 625,625 650,145
Held to Maturity Securities 42,303 52,998 42,252 43,467 52,929
Other Investment Securities   67,449     63,725     69,469     60,310     63,639  
Total Securities   821,434     746,254     859,269     729,402     766,713  
Total Cash and Securities   1,193,076     1,221,803     1,201,308     1,161,479     1,203,041  
 
Loans held for sale 6,116 10,295 3,760 17,762 12,905
 
Commercial Loans 4,777,437 4,548,687 4,816,823 4,726,292 4,628,401
Mortgage Loans 1,462,539 1,508,239 1,464,347 1,490,306 1,502,227
Consumer Loans   313,094     306,357     322,681     301,182     297,702  
 
Gross Loans 6,553,070 6,363,283 6,603,851 6,517,780 6,428,330
 
Unearned income   (8,080 )   (5,711 )   (8,356 )   (6,364 )   (5,717 )
 
Loans, net of unearned income 6,544,990 6,357,572 6,595,495 6,511,416 6,422,613
 
Allowance for Loan Losses (74,712 ) (73,398 ) (74,571 ) (73,901 ) (73,748 )
 
Goodwill 375,583 371,778 375,559 375,583 375,583
Other Intangibles   8,805     11,213     8,588     10,107     10,776  
Total Intangibles 384,388 382,991 384,147 385,690 386,359
 
Real Estate Owned 43,217 48,321 42,537 49,484 50,040
Other Assets   348,951     368,515     361,142     368,083     380,168  
Total Assets $ 8,446,026   $ 8,316,099   $ 8,513,818   $ 8,420,013   $ 8,381,378  
 
MEMO: Earning Assets $ 7,537,329   $ 7,369,900   $ 7,565,955   $ 7,459,217   $ 7,426,785  
 
Interest-bearing Deposits $ 4,792,755 $ 4,959,606 $ 4,777,798 $ 4,928,575 $ 4,946,725
Noninterest-bearing Deposits   1,796,258     1,754,351     1,827,836     1,824,411     1,807,199  
Total Deposits 6,589,013 6,713,957 6,605,634 6,752,986 6,753,924
 
Short-term Borrowings 410,574 280,319 291,108 314,962 288,482
Long-term Borrowings   383,786     287,661     533,609     284,926     285,000  
Total Borrowings 794,360 567,980 824,717 599,888 573,482
 
Other Liabilities   44,497     42,513     65,756     74,888     65,543  
Total Liabilities   7,427,870     7,324,450     7,496,107     7,427,762     7,392,949  
 
Preferred Equity --- --- --- --- ---
Common Equity   1,018,156     991,649     1,017,711     992,251     988,429  
Total Shareholders' Equity   1,018,156     991,649     1,017,711     992,251     988,429  
 
Total Liabilities & Equity $ 8,446,026   $ 8,316,099   $ 8,513,818   $ 8,420,013   $ 8,381,378  
 
MEMO: Interest-bearing Liabilities $ 5,587,115   $ 5,527,586   $ 5,602,515   $ 5,528,463   $ 5,520,207  
 
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: 2013 2012 2013 2013 2013 2012
 
Earnings Per Share:
Basic $ 0.44 $ 0.38 $ 0.44 $ 0.43 $ 1.31 $ 1.22
Diluted $ 0.44 $ 0.38 $ 0.44 $ 0.43 $ 1.31 $ 1.22
 
Common Dividend Declared Per Share: $ 0.31 $ 0.31 $ 0.31 $ 0.31 $ 0.93 $ 0.93
 
High Common Stock Price $ 29.45 $ 26.40 $ 26.84 $ 27.24 $ 29.45 $ 30.91
Low Common Stock Price $ 26.04 $ 22.54 $ 24.46 $ 24.80 $ 24.46 $ 22.54
 
Average Shares Outstanding (Net of Treasury Stock):
Basic 50,378,613 50,276,074 50,345,733 50,301,875 50,336,741 50,262,089
Diluted 50,472,959 50,295,162 50,402,194 50,331,503 50,402,455 50,298,998
 
Memorandum Items:
 
Tax Applicable to Security Sales/Calls $ 35 $ 23 $ 122 $ 49 $ 206 $ 64
 
Common Dividends $ 15,624 $ 15,589 $ 15,613 $ 15,605 $ 46,842 $ 46,764
 
Dividend Payout Ratio 70.47 % 80.63 % 70.27 % 72.32 % 71.01 % 76.17 %
 
September September June March
EOP Share Data: 2013 2012 2013 2013
 
Book Value Per Share $ 20.19 $ 19.66 $ 19.98 $ 19.87
Tangible Book Value Per Share (1) $ 12.57 $ 11.98 $ 12.34 $ 12.22
 
52-week High Common Stock Price $ 29.45 $ 30.91 $ 27.24 $ 29.45
Date 09/25/13 03/19/12 03/15/13 04/02/12
52-week Low Common Stock Price $ 23.02 $ 19.06 $ 22.54 $ 22.54
Date 11/16/12 10/04/11 08/02/12 08/02/12
 
EOP Shares Outstanding (Net of Treasury Stock): 50,400,944 50,275,998 50,360,373 50,337,922
 
Memorandum Items:
 
EOP Employees (full-time equivalent) 1,542 1,597 1,546 1,527
 

Note:
(1) Tangible Book Value Per Share:
Total Shareholders' Equity (GAAP) $ 1,017,711 $ 988,429 $ 1,006,058 $ 1,000,249
Less: Total Intangibles   (384,147 )   (386,359 )   (384,649 )   (385,156 )
Tangible Equity (non-GAAP) $ 633,564 $ 602,070 $ 621,409 $ 615,093
÷ EOP Shares Outstanding (Net of Treasury Stock) 50,400,944 50,275,998 50,360,373 50,337,922
Tangible Book Value Per Share (non-GAAP) $ 12.57 $ 11.98 $ 12.34 $ 12.22
 
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
2013 2012 2013 2013 2013 2012
 
Selected Yields and Net Interest Margin:
 
Loans 4.44% 4.85% 4.49% 4.61% 4.51% 4.96%
Investment Securities 2.76% 3.28% 2.55% 2.59% 2.63% 3.09%
Money Market Investments/FFS 0.26% 0.18% 0.27% 0.23% 0.26% 0.24%
Average Earning Assets Yield 4.12% 4.48% 4.15% 4.28% 4.19% 4.45%
Interest-bearing Deposits 0.54% 0.63% 0.57% 0.58% 0.56% 0.65%
Short-term Borrowings 0.27% 0.08% 0.21% 0.26% 0.24% 0.09%
Long-term Borrowings 2.31% 4.73% 3.11% 3.31% 2.84% 4.78%
Average Liability Costs 0.64% 0.81% 0.67% 0.70% 0.67% 0.85%
Net Interest Spread 3.48% 3.67% 3.48% 3.58% 3.52% 3.60%
Net Interest Margin 3.65% 3.87% 3.65% 3.75% 3.68% 3.80%
 
Selected Financial Ratios:
 
Return on Average Common Equity 8.64% 7.76% 8.81% 8.72% 8.72% 8.32%
Return on Average Assets 1.04% 0.92% 1.07% 1.05% 1.05% 0.97%
Efficiency Ratio 53.31% 56.44% 52.78% 53.15% 53.08% 54.77%
 
September September June March
2013 2012 2013 2013
Loan / Deposit Ratio 99.85% 95.09% 99.84% 96.77%
Allowance for Loan Losses/ Loans, Net of Unearned Income 1.13% 1.15% 1.14% 1.15%
Allowance for Credit Losses (1)/ Loans, Net of Unearned Income 1.16% 1.18% 1.17% 1.18%
Nonaccrual Loans / Loans, Net of Unearned Income 1.00% 1.27% 1.15% 1.14%
90-Day Past Due Loans/ Loans, Net of Unearned Income 0.15% 0.19% 0.16% 0.13%
Non-performing Loans/ Loans, Net of Unearned Income 1.26% 1.53% 1.43% 1.35%
Non-performing Assets/ Total Assets 1.48% 1.77% 1.63% 1.64%
Primary Capital Ratio 12.74% 12.58% 12.65% 12.83%
Shareholders' Equity Ratio 11.95% 11.79% 11.86% 12.03%
Price / Book Ratio 1.44 x 1.27 x 1.32 x 1.34 x
Price / Earnings Ratio 16.49 x 16.20 x 15.00 x 15.52 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: 2013 2012 2012 2013 2013
 
EOP Non-Accrual Loans $ 66,081 $ 81,861 $ 71,559 $ 75,811 $ 73,811
EOP 90-Day Past Due Loans 9,697 12,475 18,068 10,280 8,301
EOP Restructured Loans 7,342 4,091 3,175 7,909 5,309
Total EOP Non-performing Loans $ 83,120 $ 98,427 $ 92,802 $ 94,000 $ 87,421
 
EOP Other Real Estate Owned 42,537 50,040 49,484 44,416 48,850
Total EOP Non-performing Assets $ 125,657 $ 148,467 $ 142,286 $ 138,416 $ 136,271
 
 
Three Months Ended Year to Date
September September June March September September
Allowance for Credit Losses:(1) 2013 2012 2013 2013 2013 2012
Beginning Balance $ 76,619 $ 75,525 $ 76,043 $ 75,557 $ 75,557 $ 75,727
Provision for Credit Losses (3) 4,928 4,022 5,120 5,416 15,464 11,850
81,547 79,547 81,163 80,973 91,021 87,577
Gross Charge-offs (5,152) (4,453) (5,308) (5,184) (15,644) (14,375)
Recoveries 372 442 764 254 1,390 2,334
Net Charge-offs (4,780) (4,011) (4,544) (4,930) (14,254) (12,041)
Ending Balance $ 76,767 $ 75,536 $ 76,619 $ 76,043 $ 76,767 $ 75,536
 

Notes:
(1) Includes allowances for loan losses and lending-related commitments.

(2) Restructured loans with an aggregate balance of $1,277, $375, and $375 at September 30, 2012, December 31, 2012, and March 31, 2013, respectively,

     were on nonaccrual status, but are not included in the “EOP Non-Accrual Loans.” No restructured loans were on nonaccrual status at September 30, 2013

     and June 30, 2013.
(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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