News Column

United Bankshares, Inc. Announces Increased Earnings for the Year of 2013

January 30, 2014

WASHINGTON & CHARLESTON, W.V. --(BUSINESS WIRE)-- 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. United Bankshares, Inc. Steven E. Wilson , 800-445-1347 ext. 8704 Chief Financial Officer Source: United Bankshares, Inc.


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