United Bankshares, Inc. Announces Increased Earnings For The Year Of 2013

United Bankshares, Inc. (NASDAQ: UBSI), today reported an increase in earnings for the year of 2013 as compared to the year of 2012. Earnings for the year of 2013 were $85.6 million or $1.70 per diluted share, an increase from earnings of $82.6 million or $1.64 per diluted share for the year of 2012. Earnings for the fourth quarter of 2013 were $19.7 million or $0.39 per diluted share as compared to earnings of $21.2 million or $0.42 per diluted share for the fourth quarter of 2012.

“The year 2013 was another successful year for United,” stated Richard M. Adams, United’s Chairman of the Board and Chief Executive Officer. “Earnings rose from 2012 while the dividend to shareholders was increased for the 40th consecutive year. We also announced the signing of a definitive merger agreement with Virginia Commerce Bancorp, Inc., the largest acquisition in United’s history.”

Fourth quarter of 2013 results produced a return on average assets of 0.91% and a return on average equity of 7.57%. For the year of 2013, United’s return on average assets was 1.02% while the return on average equity was 8.43%. United’s annualized returns on average assets and average equity were 1.01% and 8.44%, respectively, for the fourth quarter of 2012 while the returns on average assets and average equity were 0.98% and 8.35%, respectively, for the year of 2012.

The results for the fourth quarter and year of 2013 included noncash, before-tax, other-than-temporary impairment charges of $6.4 million and $7.3 million, respectively, on certain investment securities. The results for the fourth quarter and year of 2012 included noncash, before-tax, other-than-temporary impairment charges of $2.0 million and $7.4 million, respectively, on certain investment securities. Also included in the results for the year of 2012 was 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 1.21% at December 31, 2013 compares favorably to the most recently reported percentage of 1.91% at September 30, 2013 for United’s Federal Reserve peer group. At December 31, 2013, nonperforming loans were $81.1 million, down from nonperforming loans of $92.8 million or 1.43% of loans, net of unearned income, at December 31, 2012. As of December 31, 2013, the allowance for loan losses was $74.2 million or 1.11% 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 $119.3 million, including OREO of $38.2 million at December 31, 2013, represented 1.37% of total assets which also compares favorably to the most recently reported percentage of 1.52% at September 30, 2013 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 13.7% at December 31, 2013 while its Tier I capital and leverage ratios are 12.5% and 10.7%, 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 fourth quarter of 2013 was $70.7 million which was relatively flat from the fourth quarter of 2012, decreasing $646 thousand or less than 1%. The slight decrease was due mainly to a decline in the average yield on earning assets. The fourth quarter of 2013 average yield on earning assets decreased 27 basis points from the fourth quarter of 2012. Partially offsetting this decrease to tax-equivalent net interest income for the fourth quarter of 2013 was an increase of $256.6 million or 3% in average earning assets from the fourth quarter of 2012. Average net loans and average investment securities increased $179.6 million or 3% and $108.8 million or 15%, respectively, while short-term investments declined $31.8 million or 12%. In addition, the average cost of funds for the fourth quarter of 2013 declined 13 basis points as compared to the fourth quarter of 2012. The net interest margin for the fourth quarter of 2013 was 3.66%, which was a decrease of 17 basis points from a net interest margin of 3.83% for the fourth quarter of 2012.

Tax-equivalent net interest income for the year of 2013 was $275.8 million, a decrease of $8.3 million or 3% from the year of 2012 due mainly to a decrease in the average yield on earning assets. The year of 2013 average yield on earning assets decreased 27 basis points from the year of 2012. In addition, average short-term investments declined $203.6 million or 46% for the year. Partially offsetting the decreases to tax-equivalent net interest income for the year of 2013 was a decline of 17 basis points in the average cost of funds as compared to the year of 2012. Average earning assets were flat, increasing $46.6 million or less than 1% from the year of 2012 as average net loans grew $220.3 million or 4% and average investment securities increased $29.9 million or 4% for the year. The net interest margin for the year of 2013 was 3.68%, which was a decrease of 13 basis points from a net interest margin of 3.81% for the year of 2012.

On a linked-quarter basis, United’s tax-equivalent net interest income for the fourth quarter of 2013 increased $1.5 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 $128.1 million or 2% during the quarter. Average net loans increased $99.1 million or 2% for the quarter. Average investment securities increased $25.6 million or 3% while average short-term investments increased $3.3 million or 1% for the quarter. The fourth quarter of 2013 average cost of funds decreased 5 basis points while the average yield on earning assets decreased 2 basis points from the third quarter of 2013. The net interest margin of 3.66% for the fourth quarter of 2013 was an increase of 1 basis point from the net interest margin of 3.65% for the third quarter of 2013.

For the quarters ended December 31, 2013 and 2012, the provision for loan losses was $4.3 million and $5.9 million, respectively, while the provision for the year of 2013 was $19.3 million as compared to $17.9 million for the year of 2012. Net charge-offs were $4.7 million and $19.0 million for the fourth quarter and year of 2013, respectively, as compared to $5.8 million and $17.8 million for the same time periods in 2012. Annualized net charge-offs as a percentage of average loans were 0.28% and 0.29% for the fourth quarter and year of 2013, respectively.

Noninterest income for the fourth quarter of 2013 was $12.0 million, which was a decrease of $4.7 million from the fourth quarter of 2012. Included in noninterest income for the fourth quarter of 2013 were noncash, before-tax, other-than-temporary impairment charges of $6.4 million on certain investment securities as compared to $2.0 million for the fourth quarter 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 fourth quarter of 2013 decreased $1.0 million or 5% from the fourth quarter of 2012. This decrease for the fourth quarter of 2013 was due primarily to decreases of $589 thousand in mortgage banking income due to decreased sales of mortgage loans in the secondary market and $534 thousand in fees from deposit services due to lower overdraft fee income.

Noninterest income for the year of 2013 was $67.8 million, which was an increase of $1.5 million from the year of 2012. Included in noninterest income for the year of 2013 were noncash, before-tax, other-than-temporary impairment charges of $7.3 million on certain investment securities as compared to noncash, before-tax other-than-temporary impairment charges of $7.4 million on certain investment securities for the year 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 year of 2013 was relatively flat from the year of 2012, increasing $415 thousand or less than 1%. This slight increase for the year of 2013 was due primarily to increases of $749 thousand in income from bank-owned life insurance policies due to a death benefit, $602 thousand in revenue from trust and brokerage services due to increased volume and value of assets under management and $595 thousand in fees from bankcard services due to increased volume. Virtually offsetting these increases was a decrease of $1.6 million in fees from deposit services due to lower overdraft fee income.

On a linked-quarter basis, noninterest income for the fourth quarter of 2013 decreased $6.3 million from the third quarter of 2013. Included in noninterest income for the fourth quarter of 2013 were noncash, before-tax, other-than-temporary impairment charges of $6.4 million on certain investment securities as compared to no charges for the third quarter of 2013. 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 fourth quarter of 2013 decreased $761 thousand or 4% from the third quarter of 2013. This decrease for the fourth quarter of 2013 was due primarily to decreases of $343 thousand in mortgage banking income due to decreased sales of mortgage loans in the secondary market and $269 thousand in fees from deposit services due to lower overdraft fee income.

Noninterest expense for the fourth quarter of 2013 was $48.0 million, a decrease of $1.3 million or 3% from the fourth quarter of 2012. The decrease for the fourth quarter of 2013 was mainly due to declines of $1.0 million in employee compensation due to lower expense for incentives and $602 thousand for other real estate owned (OREO) expense due to fewer declines in the fair value of OREO properties as compared to the fourth quarter of 2012. Partially offsetting these decreases was an increase of $568 thousand in employee benefits expense due mainly to higher health insurance and pension costs. Also included in noninterest expense for the fourth quarter of 2013 was an increase in merger expenses of $449 thousand.

Noninterest expense for the year of 2013 was $193.4 million, a decrease of $11.3 million or 6% from the year of 2012. Included in the results for the year of 2012 was the litigation settlement accrual of $3.3 million. Otherwise, employee compensation for the year of 2013 declined $3.3 million due to a reduction in employees from a merger of banking subsidiaries in 2012. In addition, OREO expense decreased $2.1 million as reductions to fair value and losses on sales declined, data processing expense declined $1.1 million due to a change in servicers, net occupancy expense declined $610 thousand due to a decline in offices and equipment expense decreased $559 thousand due mainly to a decline in maintenance costs from the year of 2012. Partially offsetting these decreases was an increase of $1.8 million in employee benefits expense due mainly to higher health care and pension costs. Also included in noninterest expense for the year of 2013 was an increase in merger expenses of $1.3 million.

On a linked-quarter basis, noninterest expense for the fourth quarter of 2013 decreased $608 thousand or 1% from the third quarter of 2013. This decline was due primarily to decreases of $382 thousand in employee benefits expense because of a decrease in pension costs as a result of an increase in the value of the underlying assets and $229 thousand in OREO expense due to fewer reductions in the fair value and losses on sales of OREO properties as compared to the third quarter of 2013.

During the fourth quarter of 2013, United’s Board of Directors declared a cash dividend of $0.32 per share. The 2013 dividend of $1.25 per share represented the 40th consecutive year of dividend increases for United shareholders.

On January 30, 2013, United announced the signing of a definitive merger agreement with Virginia Commerce Bancorp, Inc. (“Virginia Commerce”) headquartered in Arlington, Virginia. Virginia Commerce 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. United and Virginia Commerce are scheduled to merge tomorrow, January 31, 2014, after the close of business.

Currently, United has consolidated assets of approximately $8.7 billion with 113 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, 2013 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, 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 Year Ended

December 31 2013
 

December 31 2012

December 31 2013
 

December 31 2012
EARNINGS SUMMARY:    
Interest income, taxable equivalent (non-GAAP) $ 79,111 $ 81,300 $ 312,153 $ 330,310
Interest expense 8,453 9,996 36,313 46,190
Net interest income, taxable equivalent (non-GAAP) 70,658 71,304 275,840 284,120
Taxable equivalent adjustment 1,472 1,632 5,999 6,413
Net interest income (GAAP) 69,186 69,672 269,841 277,707
Provision for loan losses 4,343 5,947 19,267 17,862
Noninterest income 12,046 16,745 67,828 66,292
Noninterest expenses 47,977 49,273 193,358 204,656
Income taxes 9,252 9,983 39,416 38,874
Net income $ 19,660 $ 21,214 $ 85,628 $ 82,607
 
PER COMMON SHARE:
Net income:
Basic $ 0.39 $ 0.42 $ 1.70 $ 1.64
Diluted 0.39 0.42 1.70 1.64
Cash dividends $ 0.32 $ 0.31 1.25 1.24
Book value 20.66 19.74
Closing market price $ 31.45 $ 24.34
Common shares outstanding:
Actual at period end, net of treasury shares 50,430,267 50,276,573
Weighted average- basic 50,417,452 50,276,137 50,353,452 50,265,620
Weighted average- diluted 50,564,497 50,294,593 50,426,078 50,298,019
 
FINANCIAL RATIOS:
Return on average assets 0.91 % 1.01 % 1.02 % 0.98 %
Return on average shareholders’ equity 7.57 % 8.44 % 8.43 % 8.35 %
Average equity to average assets 12.01 % 11.97 % 12.07 % 11.78 %
Net interest margin 3.66 % 3.83 % 3.68 % 3.81 %
 

December 31 2013

December 31 2012

December 31 2011

September 30 2013
PERIOD END BALANCES:
Assets $ 8,735,324 $ 8,420,013 $ 8,451,470 $ 8,513,818
Earning assets 7,805,772 7,459,217 7,492,400 7,565,955
Loans, net of unearned income 6,704,583 6,511,416 6,230,777 6,595,495
Loans held for sale 4,236 17,762 3,902 3,760
Investment securities 889,342 729,402 824,219 859,269
Total deposits 6,621,571 6,752,986 6,819,010 6,605,634
Shareholders’ equity 1,041,732 992,251 968,844 1,017,711

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
  2013   2012   2013   2013   2013  
 
Interest & Loan Fees Income (GAAP) $ 77,639

 

$

79,668

 

$

76,705

 

$

75,485

 

$

76,325
Tax equivalent adjustment   1,472   1,632   1,494   1,509   1,524  
Interest & Fees Income (FTE) (non-GAAP) 79,111 81,300 78,199 76,994 77,849
Interest Expense   8,453   9,996   9,075   9,282   9,503  
Net Interest Income (FTE) (non-GAAP) 70,658 71,304 69,124 67,712 68,346
 
Provision for Loan Losses 4,343 5,947 4,777 4,960 5,187
 
Non-Interest Income:
Fees from trust & brokerage services 4,241 3,678 4,006 4,370 3,830
Fees from deposit services 10,072 10,606 10,341 10,208 9,624
Bankcard fees and merchant discounts 892 745 1,003 899 797
Other charges, commissions, and fees 461 539 599 626 561
Income from bank owned life insurance 1,076 1,248 1,138 1,185 2,389
Mortgage banking income 262 851 605 739 965
Other non-interest revenue 469 818 542 861 876
Net other-than-temporary impairment losses (6,361 ) (2,002 ) 0 (137 ) (834 )
Net gains on sales/calls of investment

securities
 

934
 

262
 

101
 

348
  140  
Total Non-Interest Income   12,046   16,745   18,335   19,099   18,348  
 
Non-Interest Expense:
Employee compensation 17,244 18,272 17,269 16,957 16,604
Employee benefits 5,460 4,892 5,842 5,675 5,993
Net occupancy 4,875 5,005 4,931 4,821 5,191
Data processing 2,970 3,009 2,880 2,813 2,731
Amortization of intangibles 450 669 479 506 534
OREO expense 1,306 1,908 1,535 2,330 1,270
FDIC expense 1,526 1,525 1,539 1,564 1,559
Other expenses   14,146   13,993   14,110   13,881   14,367  
Total Non-Interest Expense   47,977   49,273   48,585   48,547   48,249  
 
Income Before Income Taxes (FTE) (non-GAAP) 30,384 32,829 34,097 33,304 33,258
 
Tax equivalent adjustment   1,472   1,632   1,494   1,509   1,524  
 
Income Before Income Taxes (GAAP) 28,912 31,197 32,603 31,795 31,734
 
Taxes   9,252   9,983   10,433   9,576   10,155  
 
Net Income $ 19,660  

 

$

21,214
 

 

$

22,170
 

 

$

22,219
 

 

$

21,579
 
 
MEMO: Effective Tax Rate 32.00 % 32.00 % 32.00 % 30.12 % 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)

 

$
12,046

$

 
16,745

$

 
18,335

$

 
19,099

$

 
18,348
Less: Net other-than-temporary impairment losses (GAAP) (6,361 ) (2,002 ) 0 (137 ) (834 )
Less: Net gains on sales/calls of investment

securities (GAAP)
   

934
   

262
   

101
   

348
   

140
 
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)

 

 

 

$

 

 

17,473
 

$

 

 

 

 

 

18,485
 

 

$

 

 

 

 

18,234
 

$

 

 

 

 

 

18,888
 

$

 

 

 

 

 

19,042
 
 
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
  2013     2012     2011     2010  
 
Interest & Loan Fees Income (GAAP) $ 306,154 $ 323,897 $ 316,522 $ 323,382
Tax equivalent adjustment   5,999     6,413     6,587     5,906  
Interest & Fees Income (FTE) (non-GAAP) 312,153 330,310 323,109 329,288
Interest Expense   36,313     46,190     55,794     85,196  
Net Interest Income (FTE) (non-GAAP) 275,840 284,120 267,315 244,092
 
Provision for Loan Losses 19,267 17,862 17,141 13,773
 
Non-Interest Income:
Fees from trust & brokerage services 16,447 15,845 13,343 13,637
Fees from deposit services 40,245 41,832 42,110 39,220
Bankcard fees and merchant discounts 3,591 2,996 2,572 4,786
Other charges, commissions, and fees 2,247 2,229 1,849 1,918
Income from bank owned life insurance 5,788 5,039 5,286 4,673
Mortgage banking income 2,571 2,471 952 662
Other non-interest revenue 2,748 2,810 3,563 5,116
Net other-than-temporary impairment losses (7,332 ) (7,376 ) (20,414 ) (9,815 )
Net gains on sales/calls of investment

securities
 

1,523
   

446
   

1,576
   

2,006
 
Total Non-Interest Income   67,828     66,292     50,837     62,203  
 
Non-Interest Expense:
Employee compensation 68,074 71,402 64,611 60,564
Employee benefits 22,970 21,178 17,358 16,749
Net occupancy 19,818 20,428 18,596 17,246
Data processing 11,394 12,532 11,637 10,820
Amortization of intangibles 1,969 2,852 2,429 1,884
OREO expense 6,441 8,556 7,008 11,131
FDIC expense 6,188 6,064 8,468 9,684
Other expenses   56,504     61,644     53,941     54,134  
Total Non-Interest Expense   193,358     204,656     184,048     182,212  
 
Income Before Income Taxes (FTE) (non-GAAP) 131,043 127,894 116,963 110,310
 
Tax equivalent adjustment   5,999     6,413     6,587     5,906  
 
Income Before Income Taxes (GAAP) 125,044 121,481 110,376 104,404
 
Taxes   39,416     38,874     34,766     32,457  
 
Net Income $ 85,628   $ 82,607   $ 75,610   $ 71,947  
 
MEMO: Effective Tax Rate 31.52 % 32.00 % 31.50 % 31.09 %

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) $ 67,828 $ 66,292 $ 50,837 $ 62,203
Less: Net other-than-temporary impairment losses (GAAP) (7,332 ) (7,376 ) (20,414 ) (9,815 )
Less: Net gains on sales/calls of investment

securities (GAAP)
 

1,523
   

446
   

1,576
   

2,006
 
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)

 

 

$

 

 

73,637
 

 

 

$

 

 

73,222
 

 

 

$

 

 

69,675
 

 

 

$

 

 

70,012
 
 
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
2013 2012 December 31 December 31 December 31
Q-T-D Average Q-T-D Average   2013     2012     2011  
 
Cash & Cash Equivalents $ 376,412 $ 423,373 $ 416,617 $ 432,077 $ 636,003
 
Securities Available for Sale 735,626 626,516 775,284 625,625 696,518
Securities Held to Maturity 41,902 50,311 40,965 43,467 59,289
Other Investment Securities   69,539     61,436     73,093     60,310     68,412  
Total Securities   847,067     738,263     889,342     729,402     824,219  
Total Cash and Securities   1,223,479     1,161,636     1,305,959     1,161,479     1,460,222  
 
Loans Held for Sale 2,586 11,160 4,236 17,762 3,902
 
Commercial Loans 4,867,199 4,665,208 4,926,537 4,726,292 4,378,345
Mortgage Loans 1,461,033 1,499,636 1,460,327 1,490,306 1,556,905
Consumer Loans   328,015     299,598     326,735     301,182     299,030  
 
Gross Loans 6,656,247 6,464,442 6,713,599 6,517,780 6,234,280
 
Unearned Income   (8,643 )   (6,011 )   (9,016 )   (6,364 )   (3,503 )
 
Loans, Net of Unearned Income 6,647,604 6,458,431 6,704,583 6,511,416 6,230,777
 
Allowance for Loan Losses (74,689 ) (73,727 ) (74,198 ) (73,901 ) (73,874 )
 
Goodwill 375,559 375,583 375,547 375,583 375,626
Other Intangibles   8,379     10,521     8,138     10,107     12,950  
Total Intangibles 383,938 386,104 383,685 385,690 388,576
 
Real Estate Owned 39,553 47,870 38,182 49,484 51,760
Other Assets   351,867     368,097     372,877     368,083     390,107  
Total Assets $ 8,574,338   $ 8,359,571   $ 8,735,324   $ 8,420,013   $ 8,451,470  
 
MEMO: Earning Assets $ 7,665,396   $ 7,408,771   $ 7,805,772   $ 7,459,217   $ 7,492,400  
 
Interest-bearing Deposits $ 4,773,397 $ 4,936,757 $ 4,747,051 $ 4,928,575 $ 5,199,848
Noninterest-bearing Deposits   1,849,404     1,795,810     1,874,520     1,824,411     1,619,162  
Total Deposits 6,622,801 6,732,567 6,621,571 6,752,986 6,819,010
 
Short-term Borrowings 300,688 293,034 430,754 314,962 254,766
Long-term Borrowings   573,849     284,954     575,697     284,926     345,366  
Total Borrowings 874,537 577,988 1,006,451 599,888 600,132
 
Other Liabilities   47,252     48,568     65,570     74,888     63,484  
Total Liabilities   7,544,590     7,359,123     7,693,592     7,427,762     7,482,626  
 
Preferred Equity --- --- --- --- ---
Common Equity   1,029,748     1,000,448     1,041,732     992,251     968,844  
Total Shareholders' Equity   1,029,748     1,000,448     1,041,732     992,251     968,844  
 
Total Liabilities & Equity $ 8,574,338   $ 8,359,571   $ 8,735,324   $ 8,420,013   $ 8,451,470  
 
MEMO: Interest-bearing Liabilities $ 5,647,934   $ 5,514,745   $ 5,753,502   $ 5,528,463   $ 5,799,980  
 
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:   2013     2012     2013     2013     2013  
 
Earnings Per Share:
Basic $ 0.39 $ 0.42 $ 0.44 $ 0.44 $ 0.43
Diluted $ 0.39 $ 0.42 $ 0.44 $ 0.44 $ 0.43
 
Common Dividend Declared Per Share $ 0.32 $ 0.31 $ 0.31 $ 0.31 $ 0.31
 
High Common Stock Price $ 32.71 $ 25.80 $ 29.45 $ 26.84 $ 27.24
Low Common Stock Price $ 28.06 $ 23.02 $ 26.04 $ 24.46 $ 24.80
 
Average Shares Outstanding (Net of Treasury Stock):
Basic 50,417,452 50,276,137 50,378,613 50,345,733 50,301,875
Diluted 50,564,497 50,294,593 50,472,959 50,402,194 50,331,503
 
Memorandum Items:
 
Tax Applicable to Security Sales/Calls $ 327 $ 92 $ 35 $ 122 $ 49
 
Common Dividends $ 16,140 $ 15,587 $ 15,624 $ 15,613 $ 15,605
 
Dividend Payout Ratio 82.10 % 73.48 % 70.47 % 70.27 % 72.32 %
 
Year Ended
December December December December
YTD Share Data:   2013     2012     2011     2010  
 
Earnings Per Share:
Basic $ 1.70 $ 1.64 $ 1.62 $ 1.65
Diluted $ 1.70 $ 1.64 $ 1.61 $ 1.65
 
Common Dividend Declared Per Share $ 1.25 $ 1.24 $ 1.21 $ 1.20
 
Average Shares Outstanding (Net of Treasury Stock):
Basic 50,353,452 50,265,620 46,803,432 43,547,965
Diluted 50,426,078 50,298,019 46,837,363 43,625,183
 
Memorandum Items:
 
Tax Applicable to Security Sales/Calls $ 533 $ 156 $ 552 $ 702
 
Common Dividends $ 62,982 $ 62,351 $ 56,827 $ 52,300
 
Dividend Payout Ratio 73.55 % 75.48 % 75.16 % 72.69 %
 
EOP Employees (full-time equivalent) 1,528 1,529 1,619 1,451
 
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:   2013     2012     2013     2013     2013  
 
Book Value Per Share $ 20.66 $ 19.74 $ 20.19 $ 19.98 $ 19.87
Tangible Book Value Per Share (1) $ 13.05 $ 12.06 $ 12.57 $ 12.34 $ 12.22
 
52-week High Common Stock Price $ 32.71 $ 30.91 $ 29.45 $ 27.24 $ 29.45
Date 11/29/13 03/19/12 09/25/13 03/15/13 04/02/12
52-week Low Common Stock Price $ 24.46 $ 22.54 $ 23.02 $ 22.54 $ 22.54
Date 05/01/13 08/02/12 11/16/12 08/02/12 08/02/12
 
EOP Shares Outstanding (Net of Treasury Stock): 50,430,267 50,276,573 50,400,944 50,360,373 50,337,922
 
Note:
(1) Tangible Book Value Per Share:
Total Shareholders' Equity (GAAP) $ 1,041,732 $ 992,251 $ 1,017,711 $ 1,006,058 $ 1,000,249
Less: Total Intangibles   (383,685 )   (385,690 )   (384,147 )   (384,649 )   (385,156 )
Tangible Equity (non-GAAP) $ 658,047 $ 606,561 $ 633,564 $ 621,409 $ 615,093
÷ EOP Shares Outstanding (Net of Treasury Stock) 50,430,267 50,276,573 50,400,944 50,360,373 50,337,922
Tangible Book Value Per Share (non-GAAP) $ 13.05 $ 12.06 $ 12.57 $ 12.34 $ 12.22
 
Three Months Ended
December December September June March
  2013     2012 2013   2013     2013  
Selected Yields and Net Interest Margin:
 
Net Loans 4.42 % 4.74% 4.44 % 4.49 % 4.61 %
Investment Securities 2.70 % 2.65% 2.76 % 2.55 % 2.59 %
Money Market Investments/FFS 0.27 % 0.39% 0.26 % 0.27 % 0.23 %
Average Earning Assets Yield 4.10 % 4.37% 4.12 % 4.15 % 4.28 %
Interest-bearing Deposits 0.51 % 0.60% 0.54 % 0.57 % 0.58 %
Short-term Borrowings 0.27 % 0.16% 0.27 % 0.21 % 0.26 %
Long-term Borrowings 1.47 % 3.36% 2.31 % 3.11 % 3.31 %
Average Liability Costs 0.59 % 0.72% 0.64 % 0.67 % 0.70 %
Net Interest Spread 3.51 % 3.65% 3.48 % 3.48 % 3.58 %
Net Interest Margin 3.66 % 3.83% 3.65 % 3.65 % 3.75 %
 
Selected Financial Ratios:
 
Return on Average Common Equity 7.57 % 8.44% 8.64 % 8.81 % 8.72 %
Return on Average Assets 0.91 % 1.01% 1.04 % 1.07 % 1.05 %
Efficiency Ratio 52.45 % 52.01% 53.31 % 52.78 % 53.15 %
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
2013 2012 2011 2010
Selected Yields and Net Interest Margin:
Net Loans 4.49% 4.90% 5.18% 5.30%
Investment Securities 2.65% 2.98% 3.61% 4.65%
Money Market Investments/FFS 0.26% 0.27% 0.28% 0.31%
Average Earning Assets Yield 4.16% 4.43% 4.68% 4.91%
Interest-bearing Deposits 0.55% 0.64% 0.82% 1.21%
Short-term Borrowings 0.25% 0.11% 0.06% 0.06%
Long-term Borrowings 2.32% 4.45% 4.79% 4.30%
Average Liability Costs 0.65% 0.82% 1.04% 1.53%
Net Interest Spread 3.51% 3.61% 3.64% 3.38%
Net Interest Margin 3.68% 3.81% 3.87% 3.64%
 
Selected Financial Ratios:
Return on Average Common Equity 8.43% 8.35% 8.50% 9.19%
Return on Average Assets 1.02% 0.98% 0.97% 0.95%
Loan / Deposit Ratio 101.25% 96.42% 91.37% 92.07%
Allowance for Loan Losses/ Loans, Net of Unearned Income 1.11% 1.13% 1.19% 1.39%
Allowance for Credit Losses (1)/ Loans, Net of Unearned Income 1.14% 1.16% 1.22% 1.43%
Nonaccrual Loans / Loans, Net of Unearned Income 0.92% 1.10% 0.96% 1.14%
90-Day Past Due Loans/ Loans, Net of Unearned Income 0.16% 0.28% 0.26% 0.13%
Non-performing Loans/ Loans, Net of Unearned Income 1.21% 1.43% 1.28% 1.28%
Non-performing Assets/ Total Assets 1.37% 1.69% 1.56% 1.57%
Primary Capital Ratio 12.69% 12.57% 12.25% 12.00%
Shareholders' Equity Ratio 11.93% 11.78% 11.46% 11.08%
Price / Book Ratio 1.52 x 1.23 x 1.47 x 1.61 x
Price / Earnings Ratio 18.52 x 14.82 x 17.51 x 17.71 x
Efficiency Ratio 52.92% 54.08% 51.81% 53.87%
 
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:   2013     2012     2013     2013     2013  
 
EOP Non-Accrual Loans $ 61,928 $ 71,559 $ 66,081 $ 75,811 $ 73,811
EOP 90-Day Past Due Loans 11,044 18,068 9,697 10,280 8,301
EOP Restructured Loans (2)   8,157     3,175     7,342     7,909     5,309  
Total EOP Non-performing Loans $ 81,129 $ 92,802 $ 83,120 $ 94,000 $ 87,421
 
EOP Other Real Estate & Assets Owned   38,182     49,484     42,537     44,416     48,850  
Total EOP Non-performing Assets $ 119,311   $ 142,286   $ 125,657   $ 138,416   $ 136,271  
 
 
Three Months Ended Year Ended
December December December December December
Allowance for Credit Losses: (1)   2013     2012     2013     2012     2011  
Beginning Balance $ 76,767 $ 75,536 $ 75,557 $ 75,727 $ 75,039
Provision for Credit Losses (3)   4,290     5,815     19,754     17,665     16,988  
81,057 81,351 95,311 93,392 92,027
Gross Charge-offs (5,362 ) (6,180 ) (21,006 ) (20,555 ) (19,605 )
Recoveries   646     386     2,036     2,720     3,305  
Net Charge-offs   (4,716 )   (5,794 )   (18,970 )   (17,835 )   (16,300 )
Ending Balance $ 76,341   $ 75,557   $ 76,341   $ 75,557   $ 75,727  
 
Notes:
(1) Includes allowances for loan losses and lending-related commitments.
(2) Restructured loans with an aggregate balance of $861 at December 31, 2013 and $375 at March 31, 2013 and December 31, 2012 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