EXHIBIT 99.1
News Release
| | |
| For Immediate Release | | Contact: W. Mark Tatterson |
| July 28, 2016 | | Chief Financial Officer |
| | (800) 445-1347 ext. 8716 |
United Bankshares, Inc. Announces Earnings
for the Second Quarter and First Half of 2016
WASHINGTON, D.C. and CHARLESTON, WV— United Bankshares, Inc. (NASDAQ: UBSI), today reported earnings for the second quarter and the first half of 2016. Earnings for the second quarter of 2016 were $31.8 million or $0.44 per diluted share, as compared to earnings of $34.8 million or $0.50 per diluted share for the second quarter of 2015. Earnings for the first half of 2016 were $66.5 million or $0.94 per diluted share as compared to earnings of $69.4 million or $1.00 per diluted share for the first half of 2015.
“Our earnings remain strong despite significant merger expenses related to the acquisition of the Bank of Georgetown,” stated Richard M. Adams, United’s Chairman of the Board and Chief Executive Officer. “Even with these merger-related expenses, we are ahead of peer profit performance.”
On June 3, 2016, United completed its acquisition of Bank of Georgetown of Washington, D.C. The results of operations of Bank of Georgetown are included in the consolidated results of operations from the date of acquisition. As a result, the second quarter and first half of 2016 were impacted for approximately a month by increased levels of average balances, income, and expense as compared to the second quarter and first half of 2015 and the first quarter of 2016 due to the acquisition. In addition, the second quarter and first half of 2016 included $4.5 million and $4.7 million, respectively, of merger-related expenses. At consummation, Bank of Georgetown had assets of approximately $1.3 billion, loans of $999.8 million, and deposits of $971.4 million.
Second quarter of 2016 results produced an annualized return on average assets of 1.00% and an annualized return on average equity of 6.99%, respectively. For the first half of 2016, United’s return on average assets was 1.06% while the return on average equity was 7.51%. United’s Federal Reserve peer group’s (bank holding companies with total assets over $10 billion) most recently reported average return on assets and average return on equity were 0.86% and 7.44%, respectively, for the first quarter of 2016. United’s annualized returns on average assets and average equity were 1.15% and 8.23%, respectively, for the second quarter of 2015 while the returns on average assets and average equity were 1.15% and 8.30%, respectively, for the first half of 2015.
Tax-equivalent net interest income for the second quarter of 2016 was $104.2 million, an increase of $6.7 million or 7% from the second quarter of 2015 due mainly to an increase in average earning assets from the Bank of Georgetown acquisition and loan growth. Average earning assets for the second quarter of 2016 increased $599.3 million or 6% from the second quarter of 2015 due mainly to a $648.4 million or 7% increase in average net loans. Average short-term investments decreased $39.0 million or 8% while average investment securities were relatively flat, decreasing $10.2 million or less than 1%. The second quarter of 2016 average yield on earning assets increased 7 basis points from the second quarter of 2015 due to additional loan accretion of $2.0 million on previously acquired loans and higher market interest rates. Partially offsetting the increases to tax-equivalent net interest income for the second quarter of 2016 was an increase of 2 basis points in the average cost of funds as compared to the second quarter of 2015 due to the higher market interest rates. The net interest margin of 3.67% for the second quarter of 2016 was an increase of 5 basis points from the net interest margin of 3.62% for the second quarter of 2015.
United Bankshares, Inc. Announces...
July 28, 2016
Page Two
Tax-equivalent net interest income for the first half of 2016 was $204.0 million, an increase of $10.2 million or 5% from the first half of 2015. This increase in tax-equivalent net interest income was primarily attributable to an increase in average earning assets from the Bank of Georgetown acquisition and loan growth. Average earning assets increased $415.5 million or 4% from the first half of 2015 as average net loans increased $493.2 million or 5% for the first half of 2016. Average investment securities decreased $59.2 million or 5% while short-term investments decreased $18.5 million or 4%. In addition, the average yield on earning assets increased 4 basis points from the first half of 2015 due to additional loan accretion of $3.1 million on previously acquired loans and higher market interest rates. Partially offsetting the increases to tax-equivalent net interest income for the first half of 2016 was an increase of 2 basis points in the average cost of funds as compared to the first half of 2015 due to higher market interest rates. The net interest margin of 3.66% for the first half of 2016 was an increase of 5 basis points from the net interest margin of 3.61% for the first half of 2015.
On a linked-quarter basis, United’s tax-equivalent net interest income for the second quarter of 2016 increased $4.5 million or 4% due mainly to an increase in average earning assets from the Bank of Georgetown merger. Average earning assets increased $399.8 million or 4% for the linked-quarter. Average net loans increased $378.6 million or 4% while average investment securities increased $71.5 million or 6%. Average short-term investments decreased $50.3 million or 10%. In addition, the second quarter of 2016 average yield on earning assets increased 3 basis points from the first quarter of 2016 due to additional loan accretion of $1.1 million on previously acquired loans and the average cost of funds declined a basis point. The net interest margin of 3.67% for the second quarter of 2016 was an increase of 3 basis points from the net interest margin of 3.64% for the first quarter of 2016.
For the quarters ended June 30, 2016 and 2015, the provision for loan losses was $7.7 million and $5.7 million, respectively, while the provision for the first six months of 2016 was $11.7 million as compared to $11.1 million for the first six months of 2015. Net charge-offs were $10.7 million and $6.1 million for the second quarter of 2016 and 2015, respectively. Net charge-offs were $15.0 million and $11.4 million for the first half of 2016 and 2015, respectively. Annualized net charge-offs as a percentage of average loans was 0.44% and 0.32% for the second quarter and first half of 2016, respectively.
Noninterest income for the second quarter of 2016 was $18.0 million, which was a decrease of $1.5 million or 8% from the second quarter of 2015. The decrease was due to lower fees from deposit services as a result of the Durbin Amendment being effective for United on July 1, 2015. The Durbin Amendment, passed as part of the Dodd-Frank financial reform legislation, limits fees for debit card processing paid by merchants to banking companies with assets in excess of $10 billion. Fees from deposit services for the second quarter of 2016 declined $2.0 million from the second quarter of 2015 due mainly to lower income on debit card transactions.
United Bankshares, Inc. Announces...
July 28, 2016
Page Three
Noninterest income for the first half of 2016 was $34.4 million, which was a decrease of $3.3 million or 9% from the first half of 2015. Once again, the decrease was due to lower fees from deposit services as a result of the Durbin Amendment. Fees from deposit services for the first half of 2016 declined $3.8 million from the first half of 2015. Partially offsetting this decrease was an increase in mortgage banking income of $309 thousand due to an increase in the spread on loan sales.
On a linked-quarter basis, noninterest income for the second quarter of 2016 increased $1.6 million or 10% from the first quarter of 2016. Fees from deposit services increased $417 thousand as a result of increased debit card and automated teller machine (ATM) usage and bankcard fees increased $527 thousand due to increased volume.
Noninterest expense for the second quarter of 2016 was $64.9 million, an increase of $7.1 million or 12% from the second quarter of 2015 due mainly to the Bank of Georgetown merger as most major categories of noninterest expense showed increases. In particular, employee compensation increased $1.9 million including $365 thousand of merger severance charges, employee benefits increased $706 thousand including $584 thousand of expense on assumed benefit agreements, net occupancy expenses increased $1.2 million including $1.6 million for the termination of leases for closed offices, and additional merger-related expenses of $1.9 million were incurred. The remainder of the increase in employee compensation was due mainly to merit raises and higher employee incentives. In addition, other real estate owned (OREO) expense increased $1.5 million from the second quarter of 2015 due to a decline in the fair value of OREO properties.
Noninterest expense for the first half of 2016 was $122.9 million, an increase of $7.5 million or 7% from the first half of 2015 due in large part to the Bank of Georgetown merger. Employee compensation increased $3.9 million which includes the $365 thousand of merger severance charges. Otherwise, employee compensation increased due to merit raises and a higher amount of employee incentives. Employee benefits increased $506 thousand due to the $584 thousand of expense on assumed benefit agreements. Net occupancy expenses increased $955 thousand which includes the $1.6 million for the termination of leases for closed offices. Other real estate owned (OREO) expense increased $1.1 million due to a decline in the fair value of OREO properties. In addition, other merger-related expenses of $2.2 million were incurred.
On a linked-quarter basis, noninterest expense for the second quarter of 2016 increased $6.8 million or 12% from the first quarter of 2016 generally due to additional operating and merger-related expenses from the Bank of Georgetown acquisition. In particular, employee compensation expense increased $352 thousand due to the $365 thousand of merger severance charges, employee benefits increased $691 thousand due mainly to the $584 thousand of expense on assumed benefit agreements, net occupancy expense increased $1.5 million due to the $1.6 million for the termination of leases, and other merger-related expenses increased $1.7 million. In addition, OREO expense increased $2.0 million due to a decline in the fair values of OREO properties.
For the second quarter of 2016, income tax expense was $16.4 million as compared to $17.1 million for the second quarter of 2015. This decrease was due mainly to lower earnings. On a linked-quarter basis, income tax expense decreased $1.5 million due to lower earnings from the first quarter of 2016. Income tax expense for the first half 2016 increased $1.8 million from the first half 2015 as a result of historical tax credits in the first half of 2015. United’s effective tax rate was approximately 34.0% for the second quarter and first quarter of 2016 and 33.0% for the second quarter of 2015. For the first half of 2016 and 2015, United’s effective tax rate was 34.0% and 31.9%, respectively.
United Bankshares, Inc. Announces...
July 28, 2016
Page Four
United’s asset quality continues to be sound. At June 30, 2016, nonperforming loans were $113.0 million, or 1.08% of loans, net of unearned income down from nonperforming loans of $126.7 million or 1.35% of loans, net of unearned income, at December 31, 2015. As of June 30, 2016, the allowance for loan losses was $72.4 million or 0.70% of loans, net of unearned income, as compared to $75.7 million or 0.81% of loans, net of unearned income, at December 31, 2015. United’s allowance for loan losses as a percentage of non-acquired loans, net of unearned income at June 30, 2016 was 0.92% as compared to 1.00% at December 31, 2015. Total nonperforming assets of $147.9 million, including OREO of $34.9 million at June 30, 2016, represented 1.03% of total assets.
United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 12.6% at June 30, 2016 while its estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 10.0%, 12.0% and 11.5%, respectively. 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 second quarter of 2016, United’s Board of Directors declared a cash dividend of $0.33 per share. United has increased its dividend to shareholders for 42 consecutive years. United is one of only two major banking companies in the USA to have achieved such a record.
United has consolidated assets of approximately $14.3 billion with 129 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 June 30, 2016 consolidated financial statements on Form 10-Q. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of June 30, 2016 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, the allowance for loan losses as a percentage of non-acquired loans, 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.
United Bankshares, Inc. Announces...
July 28, 2016
Page Five
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%.
In accordance with accounting rules, United is unable to carry-over an acquired banking company’s previously established allowance for loan losses because acquired loans are recorded at fair value. Therefore, due to this acquisition accounting impact on the allowance for loans losses as well as loans, net of unearned income, management believes that excluding acquired loans in the calculation of the allowance for loan losses as a percentage of loans, net of unearned income reflects the difference in the accounting rules for acquired loans and originated loans as well as provides for improved comparability to prior periods and to other financial institutions without acquired loans.
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 | | | Six Months Ended | |
| | | June 30
2016 | | | June 30
2015 | | | June 30
2016 | | | June 30
2015 | |
EARNINGS SUMMARY: | | | | | | | | | | | | | | | | |
Interest income, taxable equivalent (non-GAAP) | | $ | 114,600 | | | $ | 107,126 | | | $ | 224,589 | | | $ | 213,244 | |
Interest expense | | | 10,362 | | | | 9,630 | | | | 20,574 | | | | 19,430 | |
| | | | | | | | | | | | | | | | |
Net interest income, taxable equivalent (non-GAAP) | | | 104,238 | | | | 97,496 | | | | 204,015 | | | | 193,814 | |
Taxable equivalent adjustment | | | 1,513 | | | | 1,594 | | | | 3,006 | | | | 3,163 | |
| | | | | | | | | | | | | | | | |
Net interest income (GAAP) | | | 102,725 | | | | 95,902 | | | | 201,009 | | | | 190,651 | |
Provision for loan losses | | | 7,667 | | | | 5,716 | | | | 11,702 | | | | 11,070 | |
Noninterest income | | | 17,967 | | | | 19,498 | | | | 34,359 | | | | 37,689 | |
Noninterest expenses | | | 64,855 | | | | 57,730 | | | | 122,911 | | | | 115,385 | |
| | | | | | | | | | | | | | | | |
Income before income taxes | | | 48,170 | | | | 51,954 | | | | 100,755 | | | | 101,885 | |
Income taxes | | | 16,378 | | | | 17,145 | | | | 34,257 | | | | 32,449 | |
| | | | | | | | | | | | | | | | |
Net income | | $ | 31,792 | | | $ | 34,809 | | | $ | 66,498 | | | $ | 69,436 | |
| | | | | | | | | | | | | | | | |
| | | | |
PER COMMON SHARE: | | | | | | | | | | | | | | | | |
Net income: | | | | | | | | | | | | | | | | |
Basic | | $ | 0.44 | | | $ | 0.50 | | | $ | 0.94 | | | $ | 1.00 | |
Diluted | | | 0.44 | | | | 0.50 | | | | 0.94 | | | | 1.00 | |
Cash dividends | | $ | 0.33 | | | $ | 0.32 | | | | 0.66 | | | | 0.64 | |
Book value | | | | | | | | | | | 26.39 | | | | 24.29 | |
Closing market price | | | | | | | | | | $ | 37.51 | | | $ | 40.23 | |
Common shares outstanding: | | | | | | | | | | | | | | | | |
Actual at period end, net of treasury shares | | | | | | | | | | | 76,296,146 | | | | 69,493,873 | |
Weighted average- basic | | | 71,483,703 | | | | 69,305,612 | | | | 70,490,596 | | | | 69,256,831 | |
Weighted average- diluted | | | 71,809,021 | | | | 69,587,417 | | | | 70,766,964 | | | | 69,531,839 | |
| | | | |
FINANCIAL RATIOS: | | | | | | | | | | | | | | | | |
Return on average assets | | | 1.00 | % | | | 1.15 | % | | | 1.06 | % | | | 1.15 | % |
Return on average shareholders’ equity | | | 6.99 | % | | | 8.23 | % | | | 7.51 | % | | | 8.30 | % |
Average equity to average assets | | | 14.29 | % | | | 13.96 | % | | | 14.17 | % | | | 13.88 | % |
Net interest margin | | | 3.67 | % | | | 3.62 | % | | | 3.66 | % | | | 3.61 | % |
| | | | |
| | | June 30
2016 | | | June 30
2015 | | | December 31
2015 | | | March 31
2016 | |
PERIOD END BALANCES: | | | | | | | | | | | | | | | | |
Assets | | $ | 14,338,012 | | | $ | 12,414,566 | | | $ | 12,577,944 | | | $ | 12,606,884 | |
Earning assets | | | 12,762,233 | | | | 11,023,560 | | | | 11,243,862 | | | | 11,268,979 | |
Loans, net of unearned income | | | 10,422,858 | | | | 9,082,104 | | | | 9,384,080 | | | | 9,378,393 | |
Loans held for sale | | | 6,226 | | | | 14,856 | | | | 10,681 | | | | 5,395 | |
Investment securities | | | 1,483,151 | | | | 1,258,315 | | | | 1,204,182 | | | | 1,207,310 | |
Total deposits | | | 10,315,853 | | | | 9,282,426 | | | | 9,341,527 | | | | 9,324,568 | |
Shareholders’ equity | | | 2,013,140 | | | | 1,688,013 | | | | 1,712,635 | | | | 1,735,037 | |
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 | | | Six Months Ended | |
| | | June | | | June | | | March | | | June | | | June | |
| | | 2016 | | | 2015 | | | 2016 | | | 2016 | | | 2015 | |
Interest & Loan Fees Income (GAAP) | | $ | 113,087 | | | $ | 105,532 | | | $ | 108,496 | | | $ | 221,583 | | | $ | 210,081 | |
Tax equivalent adjustment | | | 1,513 | | | | 1,594 | | | | 1,493 | | | | 3,006 | | | | 3,163 | |
| | | | | | | | | | | | | | | | | | | | |
Interest & Fees Income (FTE) (non-GAAP) | | | 114,600 | | | | 107,126 | | | | 109,989 | | | | 224,589 | | | | 213,244 | |
Interest Expense | | | 10,362 | | | | 9,630 | | | | 10,212 | | | | 20,574 | | | | 19,430 | |
| | | | | | | | | | | | | | | | | | | | |
Net Interest Income (FTE) (non-GAAP) | | | 104,238 | | | | 97,496 | | | | 99,777 | | | | 204,015 | | | | 193,814 | |
| | | | | |
Provision for Loan Losses | | | 7,667 | | | | 5,716 | | | | 4,035 | | | | 11,702 | | | | 11,070 | |
| | | | | |
Non-Interest Income: | | | | | | | | | | | | | | | | | | | | |
Fees from trust & brokerage services | | | 4,792 | | | | 4,931 | | | | 4,869 | | | | 9,661 | | | | 9,823 | |
Fees from deposit services | | | 8,390 | | | | 10,434 | | | | 7,973 | | | | 16,363 | | | | 20,207 | |
Bankcard fees and merchant discounts | | | 1,365 | | | | 1,231 | | | | 838 | | | | 2,203 | | | | 2,045 | |
Other charges, commissions, and fees | | | 796 | | | | 639 | | | | 429 | | | | 1,225 | | | | 1,117 | |
Income from bank-owned life insurance | | | 1,192 | | | | 1,258 | | | | 1,180 | | | | 2,372 | | | | 2,531 | |
Mortgage banking income | | | 789 | | | | 663 | | | | 728 | | | | 1,517 | | | | 1,208 | |
Other non-interest revenue | | | 430 | | | | 339 | | | | 371 | | | | 801 | | | | 743 | |
Net other-than-temporary impairment losses | | | (33 | ) | | | 0 | | | | 0 | | | | (33 | ) | | | (34 | ) |
Net gains on sales/calls of investment securities | | | 246 | | | | 3 | | | | 4 | | | | 250 | | | | 49 | |
| | | | | | | | | | | | | | | | | | | | |
Total Non-Interest Income | | | 17,967 | | | | 19,498 | | | | 16,392 | | | | 34,359 | | | | 37,689 | |
| | | | | | | | | | | | | | | | | | | | |
Non-Interest Expense: | | | | | | | | | | | | | | | | | | | | |
Employee compensation | | | 22,631 | | | | 20,724 | | | | 22,279 | | | | 44,910 | | | | 40,992 | |
Employee benefits | | | 7,294 | | | | 6,588 | | | | 6,603 | | | | 13,897 | | | | 13,391 | |
Net occupancy | | | 7,773 | | | | 6,542 | | | | 6,253 | | | | 14,026 | | | | 13,071 | |
Data processing | | | 3,596 | | | | 3,867 | | | | 3,551 | | | | 7,147 | | | | 7,610 | |
Amortization of intangibles | | | 919 | | | | 855 | | | | 745 | | | | 1,664 | | | | 1,710 | |
OREO expense | | | 2,663 | | | | 1,121 | | | | 649 | | | | 3,312 | | | | 2,234 | |
FDIC insurance expense | | | 2,135 | | | | 2,061 | | | | 2,120 | | | | 4,255 | | | | 4,155 | |
Other expenses | | | 17,844 | | | | 15,972 | | | | 15,856 | | | | 33,700 | | | | 32,222 | |
| | | | | | | | | | | | | | | | | | | | |
Total Non-Interest Expense | | | 64,855 | | | | 57,730 | | | | 58,056 | | | | 122,911 | | | | 115,385 | |
| | | | | | | | | | | | | | | | | | | | |
Income Before Income Taxes (FTE) (non-GAAP) | | | 49,683 | | | | 53,548 | | | | 54,078 | | | | 103,761 | | | | 105,048 | |
Tax equivalent adjustment | | | 1,513 | | | | 1,594 | | | | 1,493 | | | | 3,006 | | | | 3,163 | |
| | | | | | | | | | | | | | | | | | | | |
Income Before Income Taxes (GAAP) | | | 48,170 | | | | 51,954 | | | | 52,585 | | | | 100,755 | | | | 101,885 | |
Taxes | | | 16,378 | | | | 17,145 | | | | 17,879 | | | | 34,257 | | | | 32,449 | |
| | | | | | | | | | | | | | | | | | | | |
Net Income | | $ | 31,792 | | | $ | 34,809 | | | $ | 34,706 | | | $ | 66,498 | | | $ | 69,436 | |
| | | | | | | | | | | | | | | | | | | | |
MEMO: Effective Tax Rate | | | 34.00 | % | | | 33.00 | % | | | 34.00 | % | | | 34.00 | % | | | 31.85 | % |
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
Consolidated Balance Sheets
| | | | | | | | | | | | | | | | | | | | |
| | | June 30
2016
Q-T-D Average | | | June 30
2015
Q-T-D Average | | | June 30
2016 | | | December 31
2015 | | | June 30
2015 | |
Cash & Cash Equivalents | | $ | 624,130 | | | $ | 652,284 | | | $ | 1,101,469 | | | $ | 857,335 | | | $ | 917,101 | |
| | | | | |
Securities Available for Sale | | | 1,122,029 | | | | 1,145,994 | | | | 1,323,709 | | | | 1,066,334 | | | | 1,126,809 | |
Held to Maturity Securities | | | 38,765 | | | | 39,077 | | | | 34,029 | | | | 39,099 | | | | 39,050 | |
Other Investment Securities | | | 105,733 | | | | 91,663 | | | | 125,413 | | | | 98,749 | | | | 92,456 | |
| | | | | | | | | | | | | | | | | | | | |
Total Securities | | | 1,266,527 | | | | 1,276,734 | | | | 1,483,151 | | | | 1,204,182 | | | | 1,258,315 | |
| | | | | | | | | | | | | | | | | | | | |
Total Cash and Securities | | | 1,890,657 | | | | 1,929,018 | | | | 2,584,620 | | | | 2,061,517 | | | | 2,175,416 | |
| | | | | | | | | | | | | | | | | | | | |
Loans held for sale | | | 6,006 | | | | 10,405 | | | | 6,226 | | | | 10,681 | | | | 14,856 | |
| | | | | |
Commercial Loans | | | 7,367,456 | | | | 6,890,468 | | | | 7,943,560 | | | | 7,096,595 | | | | 6,869,386 | |
Mortgage Loans | | | 1,878,056 | | | | 1,806,125 | | | | 1,961,824 | | | | 1,843,518 | | | | 1,807,609 | |
Consumer Loans | | | 513,541 | | | | 409,444 | | | | 531,970 | | | | 458,839 | | | | 420,306 | |
| | | | | | | | | | | | | | | | | | | | |
Gross Loans | | | 9,759,053 | | | | 9,106,037 | | | | 10,437,354 | | | | 9,398,952 | | | | 9,097,301 | |
Unearned income | | | (15,283 | ) | | | (14,928 | ) | | | (14,496 | ) | | | (14,872 | ) | | | (15,197 | ) |
| | | | | | | | | | | | | | | | | | | | |
Loans, net of unearned income | | | 9,743,770 | | | | 9,091,109 | | | | 10,422,858 | | | | 9,384,080 | | | | 9,082,104 | |
Allowance for Loan Losses | | | (75,457 | ) | | | (75,617 | ) | | | (72,448 | ) | | | (75,726 | ) | | | (75,215 | ) |
Goodwill | | | 753,346 | | | | 710,252 | | | | 866,176 | | | | 710,252 | | | | 710,252 | |
Other Intangibles | | | 16,871 | | | | 20,005 | | | | 27,583 | | | | 17,840 | | | | 19,550 | |
| | | | | | | | | | | | | | | | | | | | |
Total Intangibles | | | 770,217 | | | | 730,257 | | | | 893,759 | | | | 728,092 | | | | 729,802 | |
Other Real Estate Owned | | | 30,086 | | | | 36,662 | | | | 34,894 | | | | 32,228 | | | | 34,964 | |
Other Assets | | | 431,263 | | | | 438,760 | | | | 468,103 | | | | 437,072 | | | | 452,639 | |
| | | | | | | | | | | | | | | | | | | | |
Total Assets | | $ | 12,796,542 | | | $ | 12,160,594 | | | $ | 14,338,012 | | | $ | 12,577,944 | | | $ | 12,414,566 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
MEMO: Interest-earning Assets | | $ | 11,409,062 | | | $ | 10,809,806 | | | $ | 12,762,233 | | | $ | 11,243,862 | | | $ | 11,023,560 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Interest-bearing Deposits | | $ | 6,601,335 | | | $ | 6,546,968 | | | $ | 7,174,705 | | | $ | 6,641,569 | | | $ | 6,629,478 | |
Noninterest-bearing Deposits | | | 2,800,110 | | | | 2,558,533 | | | | 3,141,148 | | | | 2,699,958 | | | | 2,652,948 | |
| | | | | | | | | | | | | | | | | | | | |
Total Deposits | | | 9,401,445 | | | | 9,105,501 | | | | 10,315,853 | | | | 9,341,527 | | | | 9,282,426 | |
| | | | | |
Short-term Borrowings | | | 390,807 | | | | 317,569 | | | | 735,323 | | | | 423,028 | | | | 383,828 | |
Long-term Borrowings | | | 1,106,972 | | | | 979,736 | | | | 1,169,892 | | | | 1,015,249 | | | | 979,614 | |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | | 1,497,779 | | | | 1,297,305 | | | | 1,905,215 | | | | 1,438,277 | | | | 1,363,442 | |
| | | | | |
Other Liabilities | | | 69,134 | | | | 60,631 | | | | 103,804 | | | | 85,505 | | | | 80,685 | |
| | | | | | | | | | | | | | | | | | | | |
Total Liabilities | | | 10,968,358 | | | | 10,463,437 | | | | 12,324,872 | | | | 10,865,309 | | | | 10,726,553 | |
| | | | | | | | | | | | | | | | | | | | |
Preferred Equity | | | — | | | | — | | | | — | | | | — | | | | — | |
Common Equity | | | 1,828,184 | | | | 1,697,157 | | | | 2,013,140 | | | | 1,712,635 | | | | 1,688,013 | |
| | | | | | | | | | | | | | | | | | | | |
Total Shareholders’ Equity | | | 1,828,184 | | | | 1,697,157 | | | | 2,013,140 | | | | 1,712,635 | | | | 1,688,013 | |
| | | | | | | | | | | | | | | | | | | | |
Total Liabilities & Equity | | $ | 12,796,542 | | | $ | 12,160,594 | | | $ | 14,338,012 | | | $ | 12,577,944 | | | $ | 12,414,566 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
MEMO: Interest-bearing Liabilities | | $ | 8,099,114 | | | $ | 7,844,273 | | | $ | 9,079,920 | | | $ | 8,079,846 | | | $ | 7,992,920 | |
| | | | | | | | | | | | | | | | | | | | |
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | June | | | June | | | March | | | June | | | June | |
| Quarterly/Year-to-Date Share Data: | | 2016 | | | 2015 | | | 2016 | | | 2016 | | | 2015 | |
Earnings Per Share: | | | | | | | | | | | | | | | | | | | | |
Basic | | $ | 0.44 | | | $ | 0.50 | | | $ | 0.50 | | | $ | 0.94 | | | $ | 1.00 | |
Diluted | | $ | 0.44 | | | $ | 0.50 | | | $ | 0.50 | | | $ | 0.94 | | | $ | 1.00 | |
| | | | | |
Common Dividend Declared Per Share: | | $ | 0.33 | | | $ | 0.32 | | | $ | 0.33 | | | $ | 0.66 | | | $ | 0.64 | |
| | | | | |
High Common Stock Price | | $ | 40.18 | | | $ | 40.70 | | | $ | 37.85 | | | $ | 40.18 | | | $ | 40.70 | |
Low Common Stock Price | | $ | 34.50 | | | $ | 36.58 | | | $ | 32.22 | | | $ | 32.22 | | | $ | 33.25 | |
| | | | | |
Average Shares Outstanding (Net of Treasury Stock): | | | | | | | | | | | | | | | | | | | | |
Basic | | | 71,483,703 | | | | 69,305,612 | | | | 69,497,489 | | | | 70,490,596 | | | | 69,256,831 | |
Diluted | | | 71,809,021 | | | | 69,587,417 | | | | 69,714,121 | | | | 70,766,964 | | | | 69,531,839 | |
| | | | | |
Memorandum Items: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Tax Applicable to Security Sales/Calls | | $ | 90 | | | $ | 1 | | | $ | 1 | | | $ | 91 | | | $ | 18 | |
| | | | | |
Common Dividends | | $ | 25,160 | | | $ | 22,229 | | | $ | 23,001 | | | $ | 48,161 | | | $ | 44,440 | |
| | | | | |
Dividend Payout Ratio | | | 79.14 | % | | | 63.86 | % | | | 66.27 | % | | | 72.42 | % | | | 64.00 | % |
| | | | | |
| | | | | | | | | June 30 | | | June 30 | | | March 31 | |
| EOP Share Data: | | | | | | | | 2016 | | | 2015 | | | 2016 | |
Book Value Per Share | | | | | | | | | | $ | 26.39 | | | $ | 24.29 | | | $ | 24.89 | |
Tangible Book Value Per Share | | | | | | | | | | $ | 14.67 | | | $ | 13.79 | | | $ | 14.46 | |
| | | | | |
52-week High Common Stock Price | | | | | | | | | | $ | 43.43 | | | $ | 40.70 | | | $ | 43.43 | |
Date | | | | | | | | | | | 07/23/15 | | | | 06/30/15 | | | | 07/23/15 | |
| | | | | |
52-week Low Common Stock Price | | | | | | | | | | $ | 32.22 | | | $ | 30.39 | | | $ | 32.22 | |
Date | | | | | | | | | | | 02/11/16 | | | | 10/07/14 | | | | 02/11/16 | |
| | | | | |
EOP Shares Outstanding (Net of Treasury Stock): | | | | | | | | | | | 76,296,146 | | | | 69,493,873 | | | | 69,706,341 | |
| | | | | |
Memorandum Items: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
EOP Employees (full-time equivalent) | | | | | | | | | | | 1,772 | | | | 1,701 | | | | 1,670 | |
| | | | | |
Note: | | | | | | | | | | | | | | | | | | | | |
(1) Tangible Book Value Per Share: | | | | | | | | | | | | | | | | | | | | |
Total Shareholders’ Equity (GAAP) | | | | | | | | | | $ | 2,013,140 | | | $ | 1,688,013 | | | $ | 1,735,037 | |
Less: Total Intangibles | | | | | | | | | | | (893,759 | ) | | | (729,802 | ) | | | (727,347 | ) |
| | | | | | | | | | | | | | | | | | | | |
Tangible Equity (non-GAAP) | | | | | | | | | | $ | 1,119,381 | | | $ | 958,211 | | | $ | 1,007,690 | |
÷ EOP Shares Outstanding (Net of Treasury Stock) | | | | | | | | | | | 76,296,146 | | | | 69,493,873 | | | | 69,706,341 | |
Tangible Book Value Per Share (non-GAAP) | | | | | | | | | | $ | 14.67 | | | $ | 13.79 | | | $ | 14.46 | |
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | June | | | June | | | March | | | June | | | June | |
| Selected Yields and Net Interest Margin: | | 2016 | | | 2015 | | | 2016 | | | 2016 | | | 2015 | |
Loans | | | 4.34 | % | | | 4.35 | % | | | 4.34 | % | | | 4.34 | % | | | 4.35 | % |
Investment Securities | | | 3.03 | % | | | 2.81 | % | | | 3.01 | % | | | 3.02 | % | | | 2.87 | % |
Money Market Investments/FFS | | | 0.55 | % | | | 0.28 | % | | | 0.48 | % | | | 0.52 | % | | | 0.27 | % |
Average Earning Assets Yield | | | 4.04 | % | | | 3.97 | % | | | 4.01 | % | | | 4.02 | % | | | 3.98 | % |
Interest-bearing Deposits | | | 0.41 | % | | | 0.42 | % | | | 0.42 | % | | | 0.41 | % | | | 0.42 | % |
Short-term Borrowings | | | 0.38 | % | | | 0.26 | % | | | 0.31 | % | | | 0.35 | % | | | 0.26 | % |
Long-term Borrowings | | | 1.21 | % | | | 1.07 | % | | | 1.22 | % | | | 1.22 | % | | | 1.04 | % |
Average Liability Costs | | | 0.51 | % | | | 0.49 | % | | | 0.52 | % | | | 0.52 | % | | | 0.50 | % |
Net Interest Spread | | | 3.53 | % | | | 3.48 | % | | | 3.49 | % | | | 3.50 | % | | | 3.48 | % |
Net Interest Margin | | | 3.67 | % | | | 3.62 | % | | | 3.64 | % | | | 3.66 | % | | | 3.61 | % |
| | | | |
Selected Financial Ratios: | | | | | | | | | | | | | | | | |
| | | | | |
Return on Average Common Equity | | | 6.99 | % | | | 8.23 | % | | | 8.06 | % | | | 7.51 | % | | | 8.30 | % |
Return on Average Assets | | | 1.00 | % | | | 1.15 | % | | | 1.13 | % | | | 1.06 | % | | | 1.15 | % |
Efficiency Ratio | | | 53.74 | % | | | 50.03 | % | | | 50.63 | % | | | 52.22 | % | | | 50.53 | % |
| | | | | | | | | | | | | | | | |
| | | June 30 | | | June 30 | | | March 31 | | | December 31 | |
| | | 2016 | | | 2015 | | | 2016 | | | 2015 | |
Loan / Deposit Ratio | | | 101.04 | % | | | 97.84 | % | | | 100.58 | % | | | 100.46 | % |
Allowance for Loan Losses/ Loans, net of unearned income | | | 0.70 | % | | | 0.83 | % | | | 0.80 | % | | | 0.81 | % |
Allowance for Loan Losses/ Non-acquired Loans, net of unearned income(1) | | | 0.92 | % | | | 1.06 | % | | | 0.98 | % | | | 1.00 | % |
Allowance for Credit Losses(2)/ Loans, net of unearned income | | | 0.71 | % | | | 0.84 | % | | | 0.82 | % | | | 0.82 | % |
Nonaccrual Loans / Loans, net of unearned income | | | 0.79 | % | | | 0.96 | % | | | 0.99 | % | | | 0.97 | % |
90-Day Past Due Loans/ Loans, net of unearned income | | | 0.05 | % | | | 0.13 | % | | | 0.08 | % | | | 0.12 | % |
Non-performing Loans/ Loans, net of unearned income | | | 1.08 | % | | | 1.33 | % | | | 1.33 | % | | | 1.35 | % |
Non-performing Assets/ Total Assets | | | 1.03 | % | | | 1.25 | % | | | 1.22 | % | | | 1.26 | % |
Primary Capital Ratio | | | 14.48 | % | | | 14.13 | % | | | 14.28 | % | | | 14.14 | % |
Shareholders’ Equity Ratio | | | 14.04 | % | | | 13.60 | % | | | 13.76 | % | | | 13.62 | % |
Price / Book Ratio | | | 1.42 | x | | | 1.66 | x | | | 1.47 | x | | | 1.50 | x |
Price / Earnings Ratio | | | 21.18 | x | | | 20.11 | x | | | 18.43 | x | | | 18.67 | x |
| | | |
Notes: | | | | | | | | | | | | |
(1) Allowance for Loan Losses (GAAP) | | $ | 72,448 | | | $ | 75,215 | | | $ | 75,490 | | | $ | 75,726 | |
| | | | |
Loans, net of unearned income (GAAP) | | | 10,422,858 | | | | 9,082,104 | | | | 9,378,393 | | | | 9,384,080 | |
| | | | |
Less: Acquired Loans (non-GAAP) | | | (2,551,928 | ) | | | (2,005,674 | ) | | | (1,698,353 | ) | | | (1,791,023 | ) |
| | | | | | | | | | | | | | | | |
Non-Acquired Loans, net of unearned income (non-GAAP) | | $ | 7,870,930 | | | $ | 7,076,430 | | | $ | 7,680,040 | | | $ | 7,593,057 | |
| | | | |
Allowance for Loan Losses/ Non-acquired Loans, Net of Unearned Income (non-GAAP) | | | 0.92 | % | | | 1.06 | % | | | 0.98 | % | | | 1.00 | % |
| | | | |
(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)
| | | | | | | | | | | | | | | | | | | | |
| | | June | | | June | | | December | | | March | | | | |
| Asset Quality Data: | | 2016 | | | 2015 | | | 2015 | | | 2016 | | | | |
EOP Non-Accrual Loans | | $ | 82,509 | | | $ | 86,843 | | | $ | 91,189 | | | $ | 92,901 | | | | | |
EOP 90-Day Past Due Loans | | | 5,594 | | | | 11,635 | | | | 11,628 | | | | 7,891 | | | | | |
EOP Restructured Loans(2) | | | 24,944 | | | | 21,992 | | | | 23,890 | | | | 24,156 | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Total EOP Non-performing Loans | | $ | 113,047 | | | $ | 120,470 | | | $ | 126,707 | | | $ | 124,948 | | | | | |
| | | | | |
EOP Other Real Estate Owned | | | 34,894 | | | | 34,964 | | | | 32,228 | | | | 28,981 | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Total EOP Non-performing Assets | | $ | 147,941 | | | $ | 155,434 | | | $ | 158,935 | | | $ | 153,929 | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | |
| | | Three Months Ended | | | Six Months Ended | |
| | | June | | | June | | | March | | | June | | | June | |
| Allowance for Credit Losses:(1) | | 2016 | | | 2015 | | | 2016 | | | 2016 | | | 2015 | |
Beginning Balance | | $ | 76,683 | | | $ | 77,048 | | | $ | 76,662 | | | $ | 76,662 | | | $ | 77,047 | |
Provision for Credit Losses(3) | | | 7,868 | | | | 5,621 | | | | 4,292 | | | | 12,160 | | | | 10,932 | |
| | | | | | | | | | | | | | | | | | | | |
| | | 84,551 | | | | 82,669 | | | | 80,954 | | | | 88,822 | | | | 87,979 | |
Gross Charge-offs | | | (11,987 | ) | | | (6,627 | ) | | | (6,946 | ) | | | (18,933 | ) | | | (12,735 | ) |
Recoveries | | | 1,278 | | | | 553 | | | | 2,675 | | | | 3,953 | | | | 1,351 | |
| | | | | | | | | | | | | | | | | | | | |
Net Charge-offs | | | (10,709 | ) | | | (6,074 | ) | | | (4,271 | ) | | | (14,980 | ) | | | (11,384 | ) |
| | | | | | | | | | | | | | | | | | | | |
Ending Balance | | $ | 73,842 | | | $ | 76,595 | | | $ | 76,683 | | | $ | 73,842 | | | $ | 76,595 | |
| | | | | | | | | | | | | | | | | | | | |
Notes:
| (1) | Includes allowances for loan losses and lending-related commitments. |
| (2) | Restructured loans with an aggregate balance of $10,682, $9,837, $11,450 and $11,949 at June 30, 2016, June 30, 2015, March 31, 2016 and December 31, 2015, respectively, were on nonaccrual status, but are not included in “EOP Non-Accrual Loans” above. |
| (3) | Includes the Provision for Loan Losses and a provision for lending-related commitments included in Other Expenses. |
