July 29--United Bankshares, Inc., parent company of United Bank, said Tuesday its second quarter profit rose nearly 50 percent compared to last year, due in large part to the company's recent acquisition of Virginia Commerce Bancorp, Inc.
United reported net income of $33.2 million, or 48 cents a share, during the second quarter. That was an increase of $11 million from the $22.2 million, or 44 cents a share, the company earned in the second quarter of 2013.
The bank's net interest income of $95.5 million for the quarter was a 41 percent increase from one year ago. The bank's average earning assets for the quarter increased by $3 billion, or 40 percent, from the second quarter of 2013. Average net loans increased $2.3 billion, or 35 percent, over the same time frame, while average investment securities increased $524.4 million, or 68 percent.
The company said the gains were primarily attributable to an increase in assets from the Virginia Commerce acquisition.
United completed its acquisition of Arlington, Va.-based Virginia Commerce Bancorp in January. At closing, Virginia Commerce had assets of nearly $2.8 billion, a loan portfolio of $2.1 billion and deposits valued at $2 billion.
For the first half of 2014, United reported net income of $63.4 million, or 96 cents a share. That's up about 45 percent from the $43.8 million the company earned in the first half of 2013.
The bank holding company, which has headquarters in both Charleston and Washington said its asset quality continues to outperform its peers, and the bank remains well-capitalized based on regulatory guidelines.
During the second quarter, the company's board of directors declared a cash dividend of $0.32 per share. Its current annualized 2014 dividend of $1.28 a share equates to a yield of roughly 4 percent based on the company's recent stock price.
Shares of United Bankshares reacted positively following the earnings news Tuesday, increasing by more than 4 percent, or $1.32, to close at $32.64.
United has about $12.1 billion in assets and has 132 full-service offices in West Virginia, Virginia, Maryland, Ohio, Pennsylvania and Washington, D.C.
Contact writer Jared Hunt at firstname.lastname@example.org or 304-348-4836.
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