United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today
reported earnings for the fourth quarter of 2023 of $79.4 million,
or $0.59 per diluted share. Fourth quarter of 2023 results produced
annualized returns on average assets, average equity and average
tangible equity, a non-GAAP measure, of 1.08%, 6.70% and 11.27%,
respectively. Earnings for the year of 2023 were $366.3 million, or
$2.71 per diluted share, and returns on average assets, average
equity and average tangible equity were 1.25%, 7.87% and 13.33%,
respectively, for the year of 2023.
The fourth quarter of 2023 included approximately $12.0 million
of noninterest expense for the Federal Deposit Insurance
Corporation’s (“FDIC”) special assessment levied on banking
organizations to recover losses to the Deposit Insurance Fund.
“We closed the year with another excellent quarter,” stated
Richard M. Adams, Jr., United’s Chief Executive Officer. “We saw
loan growth, deposit growth, margin expansion, and strong asset
quality metrics and capital levels. I’m proud of what we
accomplished in the quarter and for the full year of 2023.”
Earnings for the third quarter of 2023 were $96.2 million, or
$0.71 per diluted share, and annualized returns on average assets,
average equity and average tangible equity for the third quarter of
2023 were 1.31%, 8.14% and 13.71%, respectively. Earnings for the
fourth quarter of 2022 were $99.8 million, or $0.74 per diluted
share, and annualized returns on average assets, average equity and
average tangible equity were 1.36%, 8.80% and 15.28%, respectively,
for the fourth quarter of 2022. Earnings for the year of 2022 were
$379.6 million, or $2.80 per diluted share, and returns on average
assets, average equity and average tangible equity were 1.31%,
8.25% and 14.11%, respectively, for the year of 2022.
Fourth quarter of 2023 compared to the third quarter of
2023
Net interest income for the fourth quarter of 2023 increased
$1.2 million, or 1%, from the third quarter of 2023. Tax-equivalent
net interest income, a non-GAAP measure which adjusts for the
tax-favored status of income from certain loans and investments,
for the fourth quarter of 2023 also increased $1.2 million, or 1%,
from the third quarter of 2023. The increase in net interest income
and tax-equivalent net interest income was primarily due to organic
loan growth and a higher yield on net loans and loans held for sale
partially offset by higher interest expense driven by the impact of
deposit rate repricing. Average net loans and loans held for sale
increased $313.9 million, or 6% on an annualized basis, from the
third quarter of 2023. The yield on average net loans and loans
held for sale increased 15 basis points to 6.07% for the fourth
quarter of 2023. The yield on average interest-bearing deposits
increased 25 basis points to 2.95% for the fourth quarter of 2023.
The net interest margin of 3.55% for the fourth quarter of 2023 was
an increase of 1 basis point from the net interest margin of 3.54%
for the third quarter of 2023.
The provision for credit losses was $6.9 million for the fourth
quarter of 2023 as compared to $5.9 million for the third quarter
of 2023. The higher amount of provision expense for the fourth
quarter of 2023 as compared to the third quarter of 2023 was mainly
due to the impact of reasonable and supportable forecasts of future
macroeconomic conditions and loan growth.
Noninterest income for the fourth quarter of 2023 was flat from
the third quarter of 2023, increasing $14 thousand, or less than
1%. Other noninterest income increased $3.1 million to $5.2 million
for the fourth quarter of 2023 driven by a $2.7 million gain from
the payoff of a fixed rate commercial loan that had an associated
interest rate swap derivative. Mostly offsetting the increase in
other noninterest income was a $2.8 million decrease in income from
mortgage banking activities primarily due to a lower quarter-end
valuation of our mortgage derivatives and a lower margin on loans
sold.
Noninterest expense for the fourth quarter of 2023 increased
$17.1 million, or 13%, from the third quarter of 2023. The increase
in noninterest expense was primarily due to the $12.0 million FDIC
special assessment and increases of $5.4 million in other
noninterest expense and $3.9 million in the expense for the reserve
for unfunded loan commitments. These increases in noninterest
expense were partially offset by decreases of $3.2 million in
employee benefits and $1.2 million in employee compensation. The
increase in other noninterest expense was driven by an increase of
$2.4 million of tax credit investment amortization, an increase of
$1.9 million of expense related to community development lending
programs and $1.3 million related to trade name intangible
impairments. The decrease in employee benefits was primarily due to
lower postretirement benefit costs, lower health insurance costs
and lower Federal Insurance Contributions Act (“FICA”) costs. The
decrease in employee compensation was primarily due to lower
headcount.
Income tax expense was $24.8 million for both the fourth and
third quarters of 2023. United’s effective tax rate was 23.8% and
20.5% for the fourth quarter of 2023 and third quarter of 2023,
respectively. The higher effective tax rate was primarily driven by
the impact of provision to return adjustments in the fourth quarter
of 2023.
Fourth quarter of 2023 compared to the fourth quarter of
2022
Earnings for the fourth quarter of 2023 were $79.4 million, or
$0.59 per diluted share, as compared to earnings of $99.8 million,
or $0.74 per diluted share, for the fourth quarter of 2022.
Net interest income for the fourth quarter of 2023 decreased
$19.7 million, or 8%, from the fourth quarter of 2022.
Tax-equivalent net interest income for the fourth quarter of 2023
decreased $20.0 million, or 8%, from the fourth quarter of 2022.
The decrease in net interest income and tax-equivalent net interest
income was primarily due to higher interest expense driven by
deposit rate repricing partially offset by the impact of rising
market interest rates on earning assets and organic loan growth.
The average cost of funds increased 170 basis points from the
fourth quarter of 2022 to 3.07% driven by an increase in the yield
on average interest-bearing deposits of 179 basis points. The yield
on average earning assets increased 91 basis points from the fourth
quarter of 2022 to 5.68% driven by increases in the yield on
average net loans and loans held for sale of 89 basis points and in
the yield on average investment securities of 64 basis points.
Average net loans and loans held for sale increased $903.6 million,
or 4%, from the fourth quarter of 2022. The net interest margin of
3.55% for the fourth quarter of 2023 was a decrease of 32 basis
points from the net interest margin of 3.87% for the fourth quarter
of 2022.
The provision for credit losses was $6.9 million for the fourth
quarter of 2023 as compared to $16.4 million for the fourth quarter
of 2022.
Noninterest income for the fourth quarter of 2023 was $33.7
million, an increase of $2.8 million, or 9%, from the fourth
quarter of 2022 driven by an increase of $2.7 million in other
noninterest income and smaller increases in most other categories
of noninterest income. The increase in other noninterest income was
primarily due to the $2.7 million gain from the payoff of a fixed
rate commercial loan that had an associated interest rate swap
derivative during the fourth quarter of 2023. This increase in
noninterest income was partially offset by a $1.4 million decrease
in mortgage loan servicing income due to lower mortgage servicing
rights (“MSRs”) balances after the sale of MSRs during the second
quarter of 2023.
Noninterest expense for the fourth quarter of 2023 was $152.3
million, an increase of $14.7 million, or 11% from the fourth
quarter of 2022 primarily due to increases of $13.4 million in FDIC
insurance expense and $8.6 million in other noninterest expense
partially offset by a decrease of $5.6 million in the expense for
the reserve for unfunded loan commitments. The increase in FDIC
insurance expense was due to the $12.0 million special assessment
recognized in the fourth quarter of 2023 and a higher overall
assessment rate for the fourth quarter of 2023. Other noninterest
expense for the fourth quarter of 2022 was reduced by a $3.9
million partial recovery of a prior period litigation accrual. The
remainder of the increase in other noninterest expense was driven
by an increase of $2.2 million of tax credit amortization, $1.3
million related to trade name intangible impairments and an
increase of $1.0 million of expense related to community
development lending programs. The decrease in the expense for the
reserve for unfunded loan commitments was driven by a decrease in
the outstanding balance of loan commitments.
For the fourth quarter of 2023, income tax expense was $24.8
million as compared to $26.6 million for the fourth quarter of
2022. The decrease of $1.8 million was due to lower earnings
partially offset by a higher effective tax rate. United’s effective
tax rate was 23.8% and 21.1% for the fourth quarter of 2023 and
fourth quarter of 2022, respectively. The higher effective tax rate
for the fourth quarter of 2023 was primarily driven by the impact
of provision to return adjustments.
Year of 2023 compared to the Year of 2022
Earnings for the year of 2023 were $366.3 million, or $2.71 per
diluted share, as compared to earnings of $379.6 million, or $2.80
per diluted share, for the year of 2022.
Net interest income for the year of 2023 increased $23.5
million, or 3%, from the year of 2022. Tax-equivalent net interest
income, a non-GAAP measure which adjusts for the tax-favored status
of income from certain loans and investments, for the year of 2023
increased $23.0 million, or 3%, from the year of 2022. The increase
in net interest income and tax-equivalent net interest income was
primarily due to the impact of rising market interest rates on
earning assets, organic loan growth and a change in the asset mix
to higher earning assets. These increases were partially offset by
higher interest expense primarily driven by deposit rate repricing,
lower income from Paycheck Protection Program (“PPP”) loan fees and
lower acquired loan accretion income. The yield on average earning
assets increased 150 basis points from the year of 2022 to 5.41%
driven by increases in the yield on average net loans and loans
held for sale of 131 basis points and in the yield on average
investments securities of 110 basis points. Average earning assets
for the year of 2023 increased $271.0 million, or 1%, from the year
of 2022 due to a $1.5 billion increase in average net loans and
loans held for sale partially offset by a $697.0 million decrease
in average short-term investments and a $522.5 million decrease in
average investment securities. The average cost of funds increased
205 basis points from the year of 2022 to 2.69% driven by an
increase in the yield on average interest-bearing deposits of 196
basis points. Net PPP loan fee income decreased $9.2 million from
the year of 2022. Acquired loan accretion income was $11.5 million
and $18.3 million for the years of 2023 and 2022, respectively, a
decrease of $6.8 million. The net interest margin of 3.56% for the
year of 2023 was an increase of 6 basis points from the net
interest margin of 3.50% for the year of 2022.
The provision for credit losses was $31.2 million for the year
of 2023 as compared to $18.8 million for the year of 2022. The
higher amount of provision expense for the year of 2023 as compared
to the year of 2022 was mainly due to the impact of qualitative
adjustments, reasonable and supportable forecasts of future
macroeconomic conditions and loan growth.
Noninterest income for the year of 2023 was $135.3 million,
which was a decrease of $18.0 million, or 12%, from the year of
2022. Income from mortgage banking activities decreased $16.1
million from the year of 2022 mainly due to lower mortgage loan
origination and sale volume and a lower margin on loans sold.
Additionally, net losses on investment securities were $7.6 million
for the year of 2023 as compared to net gains on investment
securities of $776 thousand for the year of 2022 mainly driven by a
$7.2 million loss on the sale of available for sale (“AFS”)
investment securities in the second quarter of 2023. The decrease
in noninterest income was partially offset by a $4.5 million
increase in mortgage loan servicing income mainly driven by an $8.1
million gain on sale of MSRs in the second quarter of 2023
partially offset by lower MSR balances after the sale. Other
noninterest income increased $3.7 million to $11.1 million for the
year of 2023 driven by the aforementioned $2.7 million gain from
the payoff of a fixed rate commercial loan that had an associated
interest rate swap derivative.
Noninterest expense for the year of 2023 was $560.2 million, an
increase of $5.1 million, or 1%, from the year of 2022 driven by
increases of $18.4 million in FDIC insurance expense and $14.5
million in other noninterest expense partially offset by decreases
of $16.2 million in the expense for the reserve for unfunded loan
commitments and $11.6 million in employee compensation. The
increase in FDIC insurance expense was due to the $12.0 million
special assessment recognized in the fourth quarter of 2023 and a
higher overall assessment rate for 2023. The increase in other
noninterest expense was driven by an increase of $2.6 million of
expense related to community development lending programs, an
increase of $1.7 million of tax credit investment amortization,
$1.3 million related to trade name intangible impairments and by
higher amounts of certain general operating expenses. The decrease
in employee compensation was primarily due to lower employee
commissions and incentives related to mortgage banking
production.
For the year of 2023, income tax expense was $97.5 million as
compared to $96.2 million for the year of 2022 primarily due to a
higher effective tax rate partially offset by lower earnings.
United’s effective tax rate was 21.0% and 20.2% for the years of
2023 and 2022, respectively.
Credit Quality
United’s asset quality continues to be sound. At December 31,
2023, non-performing loans were $45.5 million, or 0.21% of loans
& leases, net of unearned income. Total non-performing assets
were $48.1 million, including OREO of $2.6 million, or 0.16% of
total assets at December 31, 2023. At December 31, 2022,
non-performing loans were $58.6 million, or 0.29% of loans &
leases, net of unearned income. Total non-performing assets were
$60.7 million, including OREO of $2.1 million, or 0.21% of total
assets at December 31, 2022.
On January 1, 2023, United adopted ASU 2022-02, “Troubled Debt
Restructurings and Vintage Disclosures” which eliminated the
accounting guidance on troubled debt restructurings and enhanced
creditors’ disclosure requirements related to loan refinancings and
restructurings for borrowers experiencing financial difficulty.
After the adoption of ASU 2022-02, United no longer considers
accruing restructured loans that are fewer than 90 days past due as
non-performing loans or non-performing assets. December 31, 2022
non-performing loans and non-performing assets included $9.1
million of troubled debt restructurings that were on accruing
status and fewer than 90 days past due but classified as
non-performing loans and non-performing assets. Restructured loans
that are on non-accrual or 90-day past due are included in the
respective non-performing loan and non-performing asset categories
for periods subsequent to adoption.
As of December 31, 2023, the allowance for loan & lease
losses was $259.2 million, or 1.21% of loans & leases, net of
unearned income, as compared to $234.7 million, or 1.14% of loans
& leases, net of unearned income, at December 31, 2022. Net
charge-offs were $2.5 million for the fourth quarter of 2023
compared to $1.2 million for the fourth quarter of 2022. Net
charge-offs were $6.7 million for the year of 2023 compared to $101
thousand for the year of 2022. Annualized net charge-offs as a
percentage of average loans & leases, net of unearned income
were 0.05% and 0.02% for the fourth quarter of 2023 and 2022,
respectively. Net charge-offs as a percentage of average loans
& leases, net of unearned income were 0.03% and zero for the
year of 2023 and 2022, respectively. Net charge-offs were $1.8
million for the third quarter of 2023.
Capital
United continues to be well-capitalized based upon regulatory
guidelines. United’s estimated risk-based capital ratio is 15.4% at
December 31, 2023, while estimated Common Equity Tier 1 capital,
Tier 1 capital and leverage ratios are 13.1%, 13.1% and 11.4%,
respectively. The December 31, 2023 ratios reflect United’s
election of a five-year transition provision, allowed by the
Federal Reserve Board and other federal banking agencies in
response to the COVID-19 pandemic, to delay for two years the full
impact of CECL on regulatory capital, followed by a three-year
transition period. The regulatory requirements for a
well-capitalized financial institution are a risk-based capital
ratio of 10.0%, a Common Equity Tier 1 capital ratio of 6.5%, a
Tier 1 capital ratio of 8.0% and a leverage ratio of 5.0%.
During the year of 2022, United repurchased, under a previously
announced stock repurchase plan, approximately 2.3 million shares
of its common stock at an average price per share of $34.69. United
did not repurchase any shares of its common stock during 2023.
About United Bankshares, Inc.
As of December 31, 2023, United had consolidated assets of
approximately $29.9 billion. United is the parent company of United
Bank which comprises nearly 250 offices in Virginia, Maryland,
Washington, D.C., North Carolina, South Carolina, Georgia,
Pennsylvania, West Virginia, and Ohio. United’s 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, 2023 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, 2023 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, average tangible equity, return on average 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 21%.
Tangible equity is calculated as GAAP total shareholders’ equity
minus total intangible assets. Tangible equity can thus be
considered the most conservative valuation of the company. Tangible
equity is also presented on a per common share basis and
considering net income, a return on average tangible equity.
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 equity are presented. These measures, along with others, are
used by management to analyze capital adequacy and performance.
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
In this report, we have made various statements regarding
current expectations or forecasts of future events, which speak
only as of the date the statements are made. These statements are
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are also made from time-to-time in press releases and in
oral statements made by the officers of the Company.
Forward-looking statements can be identified by the use of the
words “expect,” “may,” “could,” “intend,” “project,” “estimate,”
“believe,” “anticipate,” and other words of similar meaning. Such
forward-looking statements are based on assumptions and estimates,
which although believed to be reasonable, may turn out to be
incorrect. Therefore, undue reliance should not be placed upon
these estimates and statements. United cannot assure that any of
these statements, estimates, or beliefs will be realized and actual
results may differ from those contemplated in these
“forward-looking statements.” The following factors, among others,
could cause the actual results of United’s operations to differ
materially from its expectations: the uncertainty as to the extent
of the duration, scope and impacts of the COVID-19 pandemic on
United, its colleagues, the communities United serves, and the
domestic and global economy; uncertainty in U.S. fiscal and
monetary policies, including the interest rate policies of the
Federal Reserve Board; volatility and disruptions in global capital
and credit markets, interest rate, securities market and monetary
supply fluctuations; increasing rates of inflation and slower
growth rates; reform of LIBOR; the nature, extent, timing, and
results of governmental actions, examinations, reviews, reforms,
regulations, and interpretations, including those involving the
Federal Reserve, FDIC, and CFPB; the effect of changes in the level
of checking or savings account deposits on United’s funding costs
and net interest margin; future provisions for credit losses on
loans and debt securities; changes in nonperforming assets;
competition; changes in legislation or regulatory requirements; and
the impact of natural disasters, extreme weather events, military
conflict (including the Russia/Ukraine conflict, the conflict in
Israel and surrounding areas, the possible expansion of such
conflicts and potential geopolitical consequences), terrorism or
other geopolitical events. For more information about factors that
could cause actual results to differ materially from United’s
expectations, refer to its reports filed with the Securities and
Exchange Commission, including the discussion under “Risk Factors”
in the Annual Report on Form 10-K for the year ended December 31,
2022, as filed with the Securities and Exchange Commission and
available on its website at www.sec.gov. Further, any
forward-looking statement speaks only as of the date on which it is
made, and United undertakes no obligation to publicly update any
forward-looking statements, whether as a result of new information,
future events, or otherwise. You are advised to consult further
disclosures United may make on related subjects in our filings with
the SEC.
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 Ended
EARNINGS
SUMMARY:
December
2023
December
2022
September
2023
December
2023
December
2022
Interest income
$
369,175
$
307,741
$
356,910
$
1,401,320
$
1,001,990
Interest expense
139,485
58,337
128,457
481,396
105,559
Net interest income
229,690
249,404
228,453
919,924
896,431
Provision for credit losses
6,875
16,368
5,948
31,153
18,822
Noninterest income
33,675
30,879
33,661
135,258
153,261
Noninterest expense
152,287
137,542
135,230
560,224
555,087
Income before income taxes
104,203
126,373
120,936
463,805
475,783
Income taxes
24,813
26,608
24,779
97,492
96,156
Net income
$
79,390
$
99,765
$
96,157
$
366,313
$
379,627
PER COMMON
SHARE:
Net income:
Basic
$
0.59
$
0.74
$
0.71
$
2.72
$
2.81
Diluted
0.59
0.74
0.71
2.71
2.80
Cash dividends
$
0.37
$
0.36
0.36
1.45
1.44
Book value
34.45
35.36
33.52
Closing market price
$
27.59
$
37.55
$
40.49
Common shares outstanding:
Actual at period end, net of treasury
shares
134,933,015
134,949,063
134,745,122
Weighted average-basic
134,691,360
134,267,532
134,685,041
134,505,058
134,776,241
Weighted average-diluted
134,984,970
134,799,436
134,887,776
134,753,820
135,117,512
FINANCIAL
RATIOS:
Return on average assets
1.08
%
1.36
%
1.31
%
1.25
%
1.31
%
Return on average shareholders’ equity
6.70
%
8.80
%
8.14
%
7.87
%
8.25
%
Return on average tangible equity
(non-GAAP)(1)
11.27
%
15.28
%
13.71
%
13.33
%
14.11
%
Average equity to average assets
16.11
%
15.45
%
16.12
%
15.89
%
15.83
%
Net interest margin
3.55
%
3.87
%
3.54
%
3.56
%
3.50
%
PERIOD END
BALANCES:
December 31
2023
December 31
2022
September 30
2023
June 30
2023
Assets
$
29,926,482
$
29,489,380
$
29,224,794
$
29,694,651
Earning assets
26,623,652
26,135,400
25,883,462
26,335,600
Loans & leases, net of unearned
income
21,359,084
20,558,166
21,097,883
20,764,291
Loans held for sale
56,261
56,879
59,614
91,296
Investment securities
4,125,754
4,872,604
4,066,299
4,342,714
Total deposits
22,819,319
22,303,166
22,676,854
22,369,753
Shareholders’ equity
4,771,240
4,516,193
4,648,878
4,637,043
Note: (1) See
information under the “Selected Financial Ratios” table for a
reconciliation of non-GAAP measure.
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 Ended
Consolidated
Statements of Income
December
December
September
June
March
December
December
2023
2022
2023
2023
2023
2023
2022
Interest & Loan Fees Income
(GAAP)
$
369,175
$
307,741
$
356,910
$
345,932
$
329,303
$
1,401,320
$
1,001,990
Tax equivalent adjustment
866
1,149
869
1,144
1,135
4,014
4,467
Interest & Fees Income (FTE)
(non-GAAP)
370,041
308,890
357,779
347,076
330,438
1,405,334
1,006,457
Interest Expense
139,485
58,337
128,457
118,471
94,983
481,396
105,559
Net Interest Income (FTE) (non-GAAP)
230,556
250,553
229,322
228,605
235,455
923,938
900,898
Provision for Credit Losses
6,875
16,368
5,948
11,440
6,890
31,153
18,822
Noninterest Income:
Fees from trust services
4,508
4,411
4,514
4,516
4,780
18,318
17,216
Fees from brokerage services
4,360
3,729
4,433
3,918
4,200
16,911
16,412
Fees from deposit services
9,107
9,510
9,282
9,325
9,362
37,076
40,557
Bankcard fees and merchant discounts
1,923
1,673
1,676
1,707
1,707
7,013
6,580
Other charges, commissions, and fees
924
805
850
949
1,138
3,861
3,267
Income from bank-owned life insurance
1,855
1,402
2,562
2,022
1,891
8,330
9,188
Income from mortgage banking
activities
4,746
4,620
7,556
7,907
6,384
26,593
42,690
Mortgage loan servicing income
783
2,218
846
9,841
2,276
13,746
9,235
Net gains (losses) on investment
securities
276
51
(181
)
(7,336
)
(405
)
(7,646
)
776
Other noninterest income
5,193
2,460
2,123
2,329
1,411
11,056
7,340
Total Noninterest Income
33,675
30,879
33,661
35,178
32,744
135,258
153,261
Noninterest Expense:
Employee compensation
57,829
57,537
59,064
58,502
55,414
230,809
242,408
Employee benefits
9,771
10,296
12,926
12,236
13,435
48,368
45,944
Net occupancy
11,690
11,455
11,494
11,409
11,833
46,426
45,129
Data processing
7,261
7,463
7,405
7,256
7,473
29,395
29,997
Amortization of intangibles
1,279
1,379
1,279
1,279
1,279
5,116
5,516
OREO expense
188
202
185
315
667
1,355
2,138
Net (gains) losses on the sale of OREO
properties
(126
)
1,062
93
16
(43
)
(60
)
700
Equipment expense
7,539
6,868
7,170
8,026
6,996
29,731
29,320
FDIC insurance expense
16,621
3,248
4,598
4,570
4,587
30,376
11,988
Mortgage loan servicing expense and
impairment
962
1,826
1,051
1,699
1,884
5,596
7,099
Expense for the reserve for unfunded loan
commitments
940
6,492
(3,002
)
(2,021
)
2,600
(1,483
)
14,747
Other noninterest expense
38,333
29,714
32,967
32,001
31,294
134,595
120,101
Total Noninterest Expense
152,287
137,542
135,230
135,288
137,419
560,224
555,087
Income Before Income Taxes (FTE)
(non-GAAP)
105,069
127,522
121,805
117,055
123,890
467,819
480,250
Tax equivalent adjustment
866
1,149
869
1,144
1,135
4,014
4,467
Income Before Income Taxes
(GAAP)
104,203
126,373
120,936
115,911
122,755
463,805
475,783
Taxes
24,813
26,608
24,779
23,452
24,448
97,492
96,156
Net Income
$
79,390
$
99,765
$
96,157
$
92,459
$
98,307
$
366,313
$
379,627
MEMO: Effective Tax Rate
23.81
%
21.06
%
20.49
%
20.23
%
19.92
%
21.02
%
20.21
%
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 2023
December 2022
December 31
December 31
September 30
Q-T-D Average
Q-T-D Average
2023
2022
2023
Cash & Cash Equivalents
$
1,073,118
$
1,053,162
$
1,598,943
$
1,176,652
$
1,184,054
Securities Available for Sale
3,710,447
4,590,452
3,786,377
4,541,925
3,749,357
Less: Allowance for credit losses
0
0
0
0
0
Net available for sale securities
3,710,447
4,590,452
3,786,377
4,541,925
3,749,357
Securities Held to Maturity
1,020
1,020
1,020
1,020
1,020
Less: Allowance for credit losses
(18
)
(19
)
(17
)
(18
)
(18
)
Net held to maturity securities
1,002
1,001
1,003
1,002
1,002
Equity Securities
8,598
7,305
8,945
7,629
8,548
Other Investment Securities
311,922
286,253
329,429
322,048
307,392
Total Securities
4,031,969
4,885,011
4,125,754
4,872,604
4,066,299
Total Cash and Securities
5,105,087
5,938,173
5,724,697
6,049,256
5,250,353
Loans held for sale
53,499
56,849
56,261
56,879
59,614
Commercial Loans & Leases
15,510,282
14,830,629
15,535,204
14,986,117
15,416,232
Mortgage Loans
4,576,046
4,045,587
4,728,374
4,158,226
4,519,845
Consumer Loans
1,156,339
1,430,837
1,109,607
1,435,820
1,178,898
Gross Loans
21,242,667
20,307,053
21,373,185
20,580,163
21,114,975
Unearned income
(16,722
)
(23,110
)
(14,101
)
(21,997
)
(17,092
)
Loans & Leases, net of unearned
income
21,225,945
20,283,943
21,359,084
20,558,166
21,097,883
Allowance for Loan & Lease Losses
(255,032
)
(219,933
)
(259,237
)
(234,746
)
(254,886
)
Net Loans
20,970,913
20,064,010
21,099,847
20,323,420
20,842,997
Mortgage Servicing Rights
4,573
21,590
4,554
21,022
4,616
Goodwill
1,888,889
1,888,889
1,888,889
1,888,889
1,888,889
Other Intangibles
14,569
19,767
12,505
18,897
15,060
Operating Lease Right-of-Use Asset
80,622
72,666
86,986
71,144
80,259
Other Real Estate Owned
2,885
10,003
2,615
2,052
3,181
Bank-Owned Life Insurance
484,987
478,516
486,895
480,184
485,386
Other Assets
558,122
558,901
563,233
577,637
594,439
Total Assets
$
29,164,146
$
29,109,364
$
29,926,482
$
29,489,380
$
29,224,794
MEMO: Interest-earning Assets
$
25,875,812
$
25,742,282
$
26,623,652
$
26,135,400
$
25,883,462
Interest-bearing Deposits
$
16,414,152
$
15,166,408
$
16,670,239
$
15,103,488
$
16,423,511
Noninterest-bearing Deposits
6,175,309
7,507,329
6,149,080
7,199,678
6,253,343
Total Deposits
22,589,461
22,673,737
22,819,319
22,303,166
22,676,854
Short-term Borrowings
198,453
154,894
196,095
160,698
188,274
Long-term Borrowings
1,394,361
1,527,904
1,789,103
2,197,656
1,388,770
Total Borrowings
1,592,814
1,682,798
1,985,198
2,358,354
1,577,044
Operating Lease Liability
85,063
77,338
92,885
75,749
84,569
Other Liabilities
199,128
177,113
257,840
235,918
237,449
Total Liabilities
24,466,466
24,610,986
25,155,242
24,973,187
24,575,916
Preferred Equity
0
0
0
0
0
Common Equity
4,697,680
4,498,378
4,771,240
4,516,193
4,648,878
Total Shareholders' Equity
4,697,680
4,498,378
4,771,240
4,516,193
4,648,878
Total Liabilities & Equity
$
29,164,146
$
29,109,364
$
29,926,482
$
29,489,380
$
29,224,794
MEMO: Interest-bearing
Liabilities
$
18,006,966
$
16,849,206
$
18,655,437
$
17,461,842
$
18,000,555
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 Ended
December
December
September
June
March
December
December
Quarterly/Year-to-Date Share Data:
2023
2022
2023
2023
2023
2023
2022
Earnings Per Share:
Basic
$
0.59
$
0.74
$
0.71
$
0.68
$
0.73
$
2.72
$
2.81
Diluted
$
0.59
$
0.74
$
0.71
$
0.68
$
0.73
$
2.71
$
2.80
Common Dividend Declared Per
Share
$
0.37
$
0.36
$
0.36
$
0.36
$
0.36
$
1.45
$
1.44
High Common Stock Price
$
38.74
$
44.15
$
34.30
$
35.61
$
42.45
$
42.45
$
44.15
Low Common Stock Price
$
25.35
$
35.73
$
26.49
$
27.68
$
33.35
$
25.35
$
33.11
Average Shares Outstanding (Net of
Treasury Stock):
Basic
134,691,360
134,267,532
134,685,041
134,683,010
134,411,166
134,505,058
134,776,241
Diluted
134,984,970
134,799,436
134,887,776
134,849,818
134,840,328
134,753,820
135,117,512
Common Dividends
$
50,066
$
48,603
$
48,706
$
48,628
$
48,720
$
196,120
$
194,977
Dividend Payout Ratio
63.06
%
48.72
%
50.65
%
52.59
%
49.56
%
53.54
%
51.36
%
December 31
December 31
September 30
June 30
EOP Share
Data:
2023
2022
2023
2023
Book Value Per Share
$
35.36
$
33.52
$
34.45
$
34.37
Tangible Book Value Per Share (non-GAAP)
(1)
$
21.27
$
19.36
$
20.34
$
20.25
52-week High Common Stock Price
$
42.45
$
44.15
$
44.15
$
44.15
Date
2/3/2023
11/11/22
11/11/22
11/11/22
52-week Low Common Stock Price
$
25.35
$
33.11
$
26.49
$
27.68
Date
10/24/23
5/2/22
9/22/23
5/12/23
EOP Shares
Outstanding (Net of Treasury Stock):
134,949,063
134,745,122
134,933,015
134,934,858
Memorandum
Items:
EOP Employees (full-time equivalent)
2,736
2,856
2,803
2,799
Note:
(1) Tangible Book Value Per Share:
Total Shareholders' Equity (GAAP)
$
4,771,240
$
4,516,193
$
4,648,878
$
4,637,043
Less: Total Intangibles
(1,901,394
)
(1,907,786
)
(1,903,949
)
(1,905,228
)
Tangible Equity (non-GAAP)
$
2,869,846
$
2,608,407
$
2,744,929
$
2,731,815
÷ EOP Shares Outstanding (Net of Treasury
Stock)
134,949,063
134,745,122
134,933,015
134,934,858
Tangible Book Value Per Share
(non-GAAP)
$
21.27
$
19.36
$
20.34
$
20.25
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 2023
Three Months Ended
December 2022
Three Months Ended
September 2023
Selected Average
Balances and Yields:
Average
Average
Average
Average
Average
Average
ASSETS:
Balance
Interest(1)
Rate(1)
Balance
Interest(1)
Rate(1)
Balance
Interest(1)
Rate(1)
Earning Assets:
Federal funds sold and securities
purchased under
5.60
%
4.82
%
5.50
%
agreements to resell and other short-term
investments
$
819,431
$
11,570
$
736,412
$
8,946
$
852,224
$
11,810
Investment securities:
Taxable
3,836,498
35,710
3.72
%
4,508,813
34,568
3.07
%
3,994,073
35,730
3.58
%
Tax-exempt
195,471
1,471
3.01
%
376,198
2,717
2.89
%
211,178
1,482
2.81
%
Total securities
4,031,969
37,181
3.69
%
4,885,011
37,285
3.05
%
4,205,251
37,212
3.54
%
Loans and loans held for sale, net of
unearned income (2)
21,279,444
321,290
6.00
%
20,340,792
262,659
5.13
%
20,961,313
308,757
5.85
%
Allowance for loan losses
(255,032
)
(219,933
)
(250,810
)
Net loans and loans held for sale
21,024,412
6.07
%
20,120,859
5.18
%
20,710,503
5.92
%
Total earning assets
25,875,812
$
370,041
5.68
%
25,742,282
$
308,890
4.77
%
25,767,978
$
357,779
5.52
%
Other assets
3,288,334
3,367,082
3,307,943
TOTAL ASSETS
$
29,164,146
$
29,109,364
$
29,075,921
LIABILITIES:
Interest-Bearing Liabilities:
Interest-bearing deposits
$
16,414,152
$
122,132
2.95
%
$
15,166,408
$
44,265
1.16
%
$
15,993,991
$
108,793
2.70
%
Short-term borrowings
198,453
1,998
3.99
%
154,894
874
2.24
%
188,945
1,805
3.79
%
Long-term borrowings
1,394,361
15,355
4.37
%
1,527,904
13,198
3.43
%
1,590,763
17,859
4.45
%
Total interest-bearing liabilities
18,006,966
139,485
3.07
%
16,849,206
58,337
1.37
%
17,773,699
128,457
2.87
%
Noninterest-bearing deposits
6,175,309
7,507,329
6,337,052
Accrued expenses and other liabilities
284,191
254,451
278,046
TOTAL LIABILITIES
24,466,466
24,610,986
24,388,797
SHAREHOLDERS’ EQUITY
4,697,680
4,498,378
4,687,124
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY
$
29,164,146
$
29,109,364
$
29,075,921
NET INTEREST INCOME
$
230,556
$
250,553
$
229,322
INTEREST RATE SPREAD
2.61
%
3.40
%
2.65
%
NET INTEREST MARGIN
3.55
%
3.87
%
3.54
%
(1) The interest income and the yields on federally nontaxable
loans and investment securities are presented on a tax-equivalent
basis using the statutory federal income tax rate of 21%.
(2) Nonaccruing loans are included in the
daily average loan amounts outstanding.
UNITED BANKSHARES, INC. AND
SUBSIDIARIES
Washington, D.C. and
Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per
Share Data)
Year Ended
December 2023
Year Ended
December 2022
Selected Average
Balances and Yields:
Average
Average
Average
Average
ASSETS:
Balance
Interest(1)
Rate(1)
Balance
Interest(1)
Rate(1)
Earning Assets:
Federal funds sold and securities
purchased under
5.23
%
1.44
%
agreements to resell and other short-term
investments
$
900,077
$
47,069
$
1,597,108
$
22,950
Investment securities:
Taxable
4,125,467
144,420
3.50
%
4,532,713
105,780
2.33
%
Tax-exempt
294,802
8,411
2.85
%
410,037
10,983
2.68
%
Total securities
4,420,269
152,831
3.46
%
4,942,750
116,763
2.36
%
Loans and loans held for sale, net of
unearned income (2)
20,909,248
1,205,434
5.77
%
19,389,485
866,744
4.47
%
Allowance for loan losses
(245,386
)
(216,104
)
Net loans and loans held for sale
20,663,862
5.83
%
19,173,381
4.52
%
Total earning assets
25,984,208
$
1,405,334
5.41
%
25,713,239
$
1,006,457
3.91
%
Other assets
3,311,450
3,360,609
TOTAL ASSETS
$
29,295,658
$
29,073,848
LIABILITIES:
Interest-Bearing Liabilities:
Interest-bearing deposits
$
15,782,761
$
391,094
2.48
%
$
15,466,386
$
80,237
0.52
%
Short-term borrowings
182,936
6,449
3.53
%
140,773
1,785
1.27
%
Long-term borrowings
1,923,924
83,853
4.36
%
1,014,655
23,537
2.32
%
Total interest-bearing liabilities
17,889,621
481,396
2.69
%
16,621,814
105,559
0.64
%
Noninterest-bearing deposits
6,475,051
7,580,624
Accrued expenses and other liabilities
276,883
269,970
TOTAL LIABILITIES
24,641,555
24,472,408
SHAREHOLDERS’ EQUITY
4,654,103
4,601,440
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY
$
29,295,658
$
29,073,848
NET INTEREST INCOME
$
923,938
$
900,898
INTEREST RATE SPREAD
2.72
%
3.27
%
NET INTEREST MARGIN
3.56
%
3.50
%
(1) The interest income and the yields on
federally nontaxable loans and investment securities are presented
on a tax-equivalent basis using the statutory federal income tax
rate of 21%.
(2) Nonaccruing loans are included in the
daily average loan amounts outstanding.
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 Ended
December
December
September
June
March
December
December
Selected
Financial Ratios:
2023
2022
2023
2023
2023
2023
2022
Return on Average Assets
1.08
%
1.36
%
1.31
%
1.26
%
1.35
%
1.25
%
1.31
%
Return on Average Shareholders’ Equity
6.70
%
8.80
%
8.14
%
7.96
%
8.72
%
7.87
%
8.25
%
Return on Average Tangible Equity
(non-GAAP) (1)
11.27
%
15.28
%
13.71
%
13.47
%
14.97
%
13.33
%
14.11
%
Efficiency Ratio
57.82
%
49.07
%
51.59
%
51.51
%
51.46
%
53.09
%
52.88
%
Price / Earnings Ratio
16.00
x
13.71
x
9.70
x
10.84
x
12.10
x
13.85
x
14.46
x
Note:
(1) Return on Average Tangible Equity:
(a) Net Income (GAAP)
$
79,390
$
99,765
$
96,157
$
92,459
$
98,307
$
366,313
$
379,627
(b) Number of Days
92
92
92
91
90
365
365
Average Total Shareholders' Equity
(GAAP)
$
4,697,680
$
4,498,378
$
4,687,124
$
4,659,094
$
4,570,288
$
4,654,103
$
4,601,440
Less: Average Total Intangibles
(1,903,458
)
(1,908,656
)
(1,904,769
)
(1,906,053
)
(1,907,331
)
(1,905,390
)
(1,910,377
)
(c) Average Tangible Equity (non-GAAP)
$
2,794,222
$
2,589,722
$
2,782,355
$
2,753,041
$
2,662,957
$
2,748,713
$
2,691,063
Return on Average Tangible Equity
(non-GAAP)
[(a) / (b)] x 365 / (c)
11.27
%
15.28
%
13.71
%
13.47
%
14.97
%
13.33
%
14.11
%
Selected
Financial Ratios:
December 31
2023
December 31
2022
September 30
2023
June 30
2023
Loans & Leases, net of unearned income
/ Deposit Ratio
93.60
%
92.18
%
93.04
%
92.82
%
Allowance for Loan & Lease Losses/
Loans & Leases, net of unearned income
1.21
%
1.14
%
1.21
%
1.21
%
Allowance for Credit Losses (2)/ Loans
& Leases, net of unearned income
1.42
%
1.37
%
1.42
%
1.43
%
Nonaccrual Loans / Loans & Leases, net
of unearned income
0.14
%
0.12
%
0.12
%
0.13
%
90-Day Past Due Loans/ Loans & Leases,
net of unearned income
0.07
%
0.08
%
0.09
%
0.07
%
Non-performing Loans/ Loans & Leases,
net of unearned income
0.21
%
0.29
%
0.20
%
0.20
%
Non-performing Assets/ Total Assets
0.16
%
0.21
%
0.16
%
0.15
%
Primary Capital Ratio
16.79
%
16.11
%
16.76
%
16.45
%
Shareholders' Equity Ratio
15.94
%
15.31
%
15.91
%
15.62
%
Price / Book Ratio
1.06
x
1.21
x
0.80
x
0.86
x
Note:
(2) 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)
Three Months Ended
Year Ended
December
December
September
June
March
December
December
Mortgage Banking
Segment Data:
2023
2022
2023
2023
2023
2023
2022
Applications
$
564,766
$
447,951
$
458,818
$
588,734
$
505,840
$
2,118,158
$
4,089,086
Loans originated
431,351
399,706
342,131
416,255
312,077
1,501,814
2,913,708
Loans sold
$
370,213
$
396,735
$
367,679
$
399,632
$
301,476
$
1,439,000
$
3,203,749
Purchase money % of loans closed
87
%
85
%
94
%
94
%
92
%
92
%
81
%
Realized gain on sales and fees as a % of
loans sold
2.11
%
1.82
%
2.29
%
2.27
%
2.17
%
2.22
%
2.40
%
Net interest income
$
2,635
$
2,654
$
2,558
$
2,155
$
2,122
$
9,470
$
10,599
Other income
7,680
10,693
10,871
19,946
10,861
49,358
69,307
Other expense
14,287
17,097
14,119
15,706
15,085
59,197
88,983
Income taxes
(1,268
)
(810
)
(141
)
1,270
(424
)
(563
)
(1,858
)
Net (loss) income
$
(2,704
)
$
(2,940
)
$
(549
)
$
5,125
$
(1,678
)
$
194
$
(7,219
)
December 31
December 31
September 30
June 30
March 31
Period End
Mortgage Banking Segment Data:
2023
2022
2023
2023
2023
Locked pipeline
$
93,368
$
68,654
$
99,988
$
93,417
$
92,639
Balance of loans serviced
$
1,202,448
$
3,381,485
$
1,216,805
$
1,242,441
$
3,280,741
Number of loans serviced
12,419
23,510
12,596
12,843
22,436
UNITED BANKSHARES, INC. AND
SUBSIDIARIES
Washington, D.C. and
Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per
Share Data)
December 31
December 31
September 30
June 30
March 31
Asset Quality
Data:
2023
2022
2023
2023
2023
EOP Non-Accrual Loans
$
30,919
$
23,685
$
24,456
$
26,545
$
29,296
EOP 90-Day Past Due Loans
14,579
15,565
18,283
15,007
13,105
EOP Restructured Loans (1)
n/a
19,388
n/a
n/a
n/a
Total EOP Non-performing Loans
$
45,498
$
58,638
$
42,739
$
41,552
$
42,401
EOP Other Real Estate Owned
2,615
2,052
3,181
3,756
4,086
Total EOP Non-performing Assets
$
48,113
$
60,690
$
45,920
$
45,308
$
46,487
Three Months Ended
Year Ended
December 31
December 31
September 30
June 30
March 31
December 31
December 31
Allowance for
Loan & Lease Losses:
2023
2022
2023
2023
2023
2023
2022
Beginning Balance
$
254,886
$
219,611
$
250,721
$
240,491
$
234,746
$
234,746
$
216,016
Gross Charge-offs
(3,258
)
(2,968
)
(2,836
)
(2,274
)
(2,936
)
(11,304
)
(9,650
)
Recoveries
733
1,734
1,052
1,065
1,791
4,641
9,549
Net (Charge-offs) Recoveries
(2,525
)
(1,234
)
(1,784
)
(1,209
)
(1,145
)
(6,663
)
(101
)
Provision for Loan & Lease Losses
6,876
16,369
5,949
11,439
6,890
31,154
18,831
Ending Balance
$
259,237
$
234,746
$
254,886
$
250,721
$
240,491
$
259,237
$
234,746
Reserve for lending-related
commitments
44,706
46,189
43,766
46,768
48,789
44,706
46,189
Allowance for Credit Losses (2)
$
303,943
$
280,935
$
298,652
$
297,489
$
289,280
$
303,943
$
280,935
Notes:
(1)
On January 1, 2023, United adopted ASU
2022-02, “Troubled Debt Restructurings and Vintage Disclosures”
which eliminated the accounting guidance on troubled debt
restructurings and enhanced creditors’ disclosure requirements
related to loan refinancings and restructurings for borrowers
experiencing financial difficulty. After the adoption of ASU
2022-02, United no longer considers accruing restructured loans
that are fewer than 90 days past due as non-performing loans or
non-performing assets. December 31, 2022 non-performing loans and
non-performing assets included $9,127 of troubled debt
restructurings that were on accruing status and fewer than 90 days
past due but classified as non-performing loans and non-performing
assets. Restructured loans that are on non-accrual or 90-day past
due are included in the respective non-performing loan and
non-performing asset categories for periods subsequent to
adoption.
Restructured loans with an aggregate
balance of $7,186 at December 31, 2022 were on nonaccrual status,
but are not included in “EOP Non-Accrual Loans” above. Restructured
loans with an aggregate balance of $3,075 at December 31, 2022 were
90 days past due, but not included in "EOP 90-Day Past Due Loans"
above.
(2)
Includes allowances for loan losses and
lending-related commitments.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240126315411/en/
W. Mark Tatterson Chief Financial Officer (800) 445-1347 ext.
8716
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