United Bankshares (UBSI) 8-K United Bankshares, Inc. Announces Earnings

Exhibit 99.1

News Release

For Immediate Release	Contact: W. Mark Tatterson
July 27, 2023	Chief Financial Officer
	(800) 445-1347 ext. 8716

United Bankshares, Inc. Announces Earnings

for the Second Quarter and First Half of 2023

WASHINGTON, D.C. and CHARLESTON, WV-- United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today reported earnings for the second quarter of 2023 of $92.5 million, or $0.68 per diluted share, as compared to earnings of $98.3 million, or $0.73 per diluted share, for the first quarter of 2023. Earnings for the second quarter of 2022 were $95.6 million, or $0.71 per diluted share.

“UBSI’s performance remained strong in the second quarter,” stated Richard M. Adams, Jr., United’s Chief Executive Officer. “Our profitability, asset quality, and balance sheet strength continue to allow us to take care of our customers, invest in our communities, and build new relationships across our footprint.”

Second quarter of 2023 results produced annualized returns on average assets, average equity and average tangible equity, a non-GAAP measure, of 1.26%, 7.96 % and 13.47%, respectively, compared to annualized returns on average assets, average equity and average tangible equity of 1.35%, 8.72% and 14.97%, respectively, for the first quarter of 2023. Annualized returns on average assets, average equity and average tangible equity were 1.32%, 8.33% and 14.23%, respectively, for the second quarter of 2022.

During the second quarter of 2023, United sold mortgage servicing rights (“MSRs”) with an aggregate unpaid principal balance of approximately $2.0 billion at a gain of $8.1 million. Additionally, during the second quarter of 2023, United sold approximately $187.0 million of available for sale (“AFS”) investment securities at a loss of $7.2 million.

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Second quarter of 2023 compared to the first quarter of 2023

Net interest income for the second quarter of 2023 decreased $6.9 million, or 3%, from the first 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 second quarter of 2023 also decreased $6.9 million, or 3%, from the first quarter of 2023. 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 higher interest income on net loans and loans held for sale driven by rising market interest rates. The interest rate spread for the second quarter of 2023 decreased 24 basis points from the first quarter of 2023 to 2.69% due to a 47 basis point increase in the average cost of funds partially offset by a 23 basis point increase in the yield on earning assets. The yield on average interest-bearing deposits increased 54 basis points to 2.37% from the first quarter of 2023. The yield on average net loans and loans held for sale increased 23 basis points to 5.78% from the first quarter of 2023. The net interest margin of 3.51% for the second quarter of 2023 was a decrease of 12 basis points from the net interest margin of 3.63% for the first quarter of 2023.

The provision for credit losses was $11.4 million for the second quarter of 2023 as compared to $6.9 million for the first quarter of 2023. The provision for credit losses in the second quarter of 2023 was primarily driven by an increase in the allowance for loan & lease losses mainly due to a change in qualitative factors and the impact of reasonable and supportable forecasts of future macroeconomic conditions.

Noninterest income for the second quarter of 2023 increased $2.4 million, or 7%, from the first quarter of 2023. The increase in noninterest income was primarily due to increases in mortgage loan servicing income of $7.6 million mainly driven by the gain on sale of MSRs and income from mortgage banking activities of $1.5 million driven by higher mortgage loan origination and sale volume and a higher margin on loans sold. These increases in noninterest income were partially offset by higher net losses on investment securities of $6.9 million mainly driven by the loss on sale of AFS investment securities.

Noninterest expense for the second quarter of 2023 decreased $2.1 million, or 2%, from the first quarter of 2023. The decrease in noninterest expense was primarily driven by a decrease in the expense for the reserve for unfunded loan commitments of $4.6 million partially offset by an increase in employee compensation of $3.1 million. The decrease in the expense for the reserve for unfunded loan commitments was driven by a decrease in the outstanding balance of loan commitments at quarter end. The increase in employee compensation was primarily driven by higher employee incentives as well as higher employee commissions related to mortgage banking production.

For the second quarter of 2023, income tax expense was $23.5 million as compared to $24.4 million for the first quarter of 2023. The decrease of $996 thousand was due to lower earnings partially offset by a higher effective tax rate. United’s effective tax rate was 20.2% and 19.9% for the second quarter of 2023 and first quarter of 2023, respectively.

Second quarter of 2023 compared to the second quarter of 2022

Earnings for the second quarter of 2023 were $92.5 million, or $0.68 per diluted share, as compared to earnings of $95.6 million, or $0.71 per diluted share, for the second quarter of 2022.

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Net interest income for the second quarter of 2023 increased $12.6 million, or 6%, from the second quarter of 2022. Tax-equivalent net interest income for the second quarter of 2023 also increased $12.6 million, or 6%, from the second quarter 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, higher average balances and cost of long-term borrowings, lower income from Paycheck Protection Program (“PPP”) loan fees and lower acquired loan accretion. The yield on average earning assets increased 175 basis points from the second quarter of 2022 to 5.33%. Average earning assets for the second quarter of 2023 increased $494.6 million, or 2%, from the second quarter of 2022 due to a $1.7 billion increase in average net loans and loans held for sale partially offset by a $743.1 million decrease in average short-term investments and a $423.1 million decrease in average investment securities. The average cost of funds increased 233 basis points from the second quarter of 2022 to 2.64% primarily due to increases in the yield on average interest-bearing deposits of 212 basis points and in the yield on average long-term borrowings of 300 basis points. Average long-term borrowings increased $1.5 billion from the second quarter of 2022. Net PPP loan fee income decreased $3.5 million from the second quarter of 2022. Acquired loan accretion income was $3.1 million and $5.4 million for the second quarter of 2023 and 2022, respectively, a decrease of $2.3 million. The net interest margin of 3.51% for the second quarter of 2023 was an increase of 13 basis points from the net interest margin of 3.38% for the second quarter of 2022.

The provision for credit losses was $11.4 million for the second quarter of 2023 as compared to a net benefit of $1.8 million for the second quarter of 2022. The provision for credit losses in the second quarter of 2023 was primarily driven by an increase in the allowance for loan & lease losses mainly due to a change in qualitative factors and the impact of reasonable and supportable forecasts of future macroeconomic conditions.

Noninterest income for the second quarter of 2023 was $35.2 million, which was a decrease of $8.4 million, or 19%, from the second quarter of 2022. Net losses on investment securities were $7.3 million for the second quarter of 2023 as compared to net gains on investment securities of $1.2 million for the second quarter of 2022 mainly driven by the loss on sale of AFS investment securities in the second quarter of 2023. Additionally, income from mortgage banking activities decreased $4.5 million mainly due to lower origination and sale volume and income from bank owned life insurance (“BOLI”) decreased $2.1 million primarily due to higher amounts of death benefits recognized in the second quarter of 2022. This decrease in noninterest income was partially offset by an increase in mortgage loan servicing income of $7.5 million mainly driven by the gain on sale of MSRs.

Noninterest expense for the second quarter of 2023 was $135.3 million, a decrease of $5.9 million, or 4%, from the second quarter of 2022 primarily due to decreases of $7.9 million in the expense for the reserve for unfunded loan commitments and $4.1 million in employee compensation partially offset by increases of $3.2 million in other noninterest expense and $1.6 million in FDIC insurance expense. The decrease in employee compensation was primarily due to lower employee commissions related to mortgage banking production as well as lower employee incentives. The increase in other noninterest expense was primarily driven by higher amounts of certain general operating expenses. The increase in FDIC insurance expense was primarily due to a higher assessment rate.

Income tax expense of $23.5 million for the second quarter of 2023 was flat from the second quarter of 2022, decreasing $79 thousand, or less than 1%. The decrease was driven by lower earnings partially offset by a higher effective tax rate. United’s effective tax rate was 20.2% for the second quarter of 2023 and 19.8% for the second quarter of 2022.

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First half of 2023 compared to the first half of 2022

Earnings for the first six months of 2023 were $190.8 million, or $1.41 per diluted share, as compared to earnings of $177.3 million, or $1.30 per diluted share, for the first six months of 2022.

Net interest income for the first six months of 2023 increased $55.4 million, or 14%, from the first six months 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 first six months of 2023 also increased $55.4 million, or 14%, from the first six months 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 and higher average balances and cost of long-term borrowings as well as lower income from PPP loan fees and acquired loan accretion. The yield on average earning assets increased 184 basis points from the first six months of 2022 to 5.21%. Average earning assets for the first six months of 2023 increased $311.0 million, or 1%, from the first six months of 2022 due to a $1.9 billion increase in average net loans and loans held for sale partially offset by a $1.4 billion decrease in average short-term investments and a $171.4 million decrease in average investment securities. The average cost of funds increased 212 basis points from the first six months of 2022 to 2.41% primarily due to increases in the yield on average interest-bearing deposits of 187 basis points and in the yield on average long-term borrowings of 298 basis points. Average long-term borrowings increased $1.5 billion from the first six months of 2022. Net PPP loan fee income decreased $7.3 million from the first six months of 2022. Acquired loan accretion income was $6.2 million and $9.5 million for the first six months of 2023 and 2022, respectively, a decrease of $3.3 million. The net interest margin of 3.57% for the first six months of 2023 was an increase of 39 basis points from the net interest margin of 3.18% for the first six months of 2022.

The provision for credit losses was $18.3 million for the first six months 2023 as compared to a net benefit of $5.2 million for the first six months of 2022.

Noninterest income for the first six months of 2023 was $67.9 million, which was a decrease of $21.7 million, or 24%, from the first six months of 2022. Income from mortgage banking activities decreased $17.4 million from the first six months of 2022 mainly due to lower mortgage loan origination and sale volume driven by the rising rate environment and a lower margin on loans sold. Additionally, net losses on investment securities were $7.7 million for the first six months of 2023 as compared to net gains on investment securities of $931 thousand for the first six months of 2022 mainly driven by the loss on sale of AFS investment securities in the second quarter of 2023. The decrease in noninterest income was partially offset by a $7.4 million increase in mortgage loans servicing income mainly driven by the gain on sale of MSRs in the second quarter of 2023.

Noninterest expense for the first six months of 2023 was $272.7 million, a decrease of $7.6 million, or 3%, from the first six months of 2022 driven by decreases in employee compensation of $11.3 million and the expense for reserve for unfunded loan commitments of $10.6 million partially offset by increases in other noninterest expense of $7.8 million and FDIC insurance expense of $3.5 million. The decrease in employee compensation was primarily due to lower employee commissions and incentives related to mortgage banking production. The increase in other noninterest expense was primarily driven by higher amounts of certain general operating expenses. The increase in FDIC insurance expense was primarily due to a higher assessment rate.

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For the first six months of 2023, income tax expense was $47.9 million as compared to $43.6 million for the first six months of 2022 primarily due to higher earnings and a higher effective tax rate. United’s effective tax rate was 20.1% for the first six months of 2023 and 19.8% for the first six months of 2022.

Credit Quality

United’s asset quality continues to be sound. At June 30, 2023, non-performing loans were $41.6 million, or 0.20% of loans & leases, net of unearned income. Total non-performing assets were $45.3 million, including other real estate owned (“OREO”) of $3.8 million, or 0.15% of total assets at June 30, 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 noted above 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 June 30, 2023, the allowance for loan & lease losses was $250.7 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 $1.2 million for the second quarter of 2023 compared to net recoveries of $941 thousand for the second quarter of 2022. Net charge-offs were $2.4 million for the first half of 2023 compared to net recoveries of $2.9 million for the first half of 2022. Annualized net charge-offs (recoveries) as a percentage of average loans & leases, net of unearned income were 0.02% and (0.02)% for the second quarter of 2023 and 2022, respectively. Annualized net charge-offs (recoveries) as a percentage of average loans & leases, net of unearned income were 0.02% and (0.03)% for the first half of 2023 and 2022, respectively. Net charge-offs were $1.1 million for the first quarter of 2023.

Capital

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 15.1% at June 30, 2023, while estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 12.8%, 12.8% and 11.0%, respectively. The June 30, 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%.

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During the second quarter of 2022, United repurchased, under a previously announced stock repurchase plan, approximately 1.5 million shares of its common stock at an average price per share of $34.47. During the first half of 2022, United repurchased 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 the first half of 2023.

About United Bankshares, Inc.

As of June 30, 2023, United had consolidated assets of approximately $29.7 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”.

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Cautionary Statements

The Company is required under generally accepted accounting principles to evaluate subsequent events through the filing of its June 30, 2023 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, 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; and changes in legislation or regulatory requirements. 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.

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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 2023			June 2022			March 2023			June 2023			June 2022
EARNINGS SUMMARY:
Interest income	$	345,932		$	227,771		$	329,303		$	675,235		$	430,566
Interest expense		118,471			12,868			94,983			213,454			24,161
Net interest income		227,461			214,903			234,320			461,781			406,405
Provision for credit losses		11,440			(1,807	)		6,890			18,330			(5,217	)
Noninterest income		35,178			43,608			32,744			67,922			89,633
Noninterest expense		135,288			141,174			137,419			272,707			280,349
Income before income taxes		115,911			119,144			122,755			238,666			220,906
Income taxes		23,452			23,531			24,448			47,900			43,629
Net income	$	92,459		$	95,613		$	98,307		$	190,766		$	177,277
PER COMMON SHARE:
Net income:
Basic	$	0.68		$	0.71		$	0.73		$	1.42		$	1.31
Diluted		0.68			0.71			0.73			1.41			1.30
Cash dividends	$	0.36		$	0.36			0.36			0.72			0.72
Book value								34.14			34.37			33.34
Closing market price							$	35.20		$	29.67		$	35.07
Common shares outstanding:
Actual at period end, net of treasury shares								134,936,551			134,934,858			134,580,646
Weighted average-basic		134,683,010			134,623,061			134,411,166			134,472,074			135,336,729
Weighted average-diluted		134,849,818			134,863,650			134,840,328			134,748,868			135,634,398
FINANCIAL RATIOS:
Return on average assets		1.26	%		1.32	%		1.35	%		1.31	%		1.23	%
Return on average shareholders’ equity		7.96	%		8.33	%		8.72	%		8.34	%		7.63	%
Return on average tangible equity (non-GAAP)(1)		13.47	%		14.23	%		14.97	%		14.20	%		12.90	%
Average equity to average assets		15.83	%		15.88	%		15.49	%		15.66	%		16.05	%
Net interest margin		3.51	%		3.38	%		3.63	%		3.57	%		3.18	%
				June 30 2023			December 31 2022			June 30 2022			March 31 2023
PERIOD END BALANCES:
Assets				$	29,694,651		$	29,489,380		$	28,777,896		$	30,182,241
Earning assets					26,335,600			26,135,400			25,356,669			26,826,111
Loans & leases, net of unearned income					20,764,291			20,558,166			18,970,395			20,612,159
Loans held for sale					91,296			56,879			220,689			68,176
Investment securities					4,342,714			4,872,604			5,073,618			4,777,587
Total deposits					22,369,753			22,303,166			23,026,649			22,284,586
Shareholders’ equity					4,637,043			4,516,193			4,487,050			4,606,537

Note: (1) See information under the “Selected Financial Ratios” table for a reconciliation of non-GAAP measure.

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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 2023			June 2022			March 2023			June 2023			June 2022
Interest & Loan Fees Income (GAAP)	$	345,932		$	227,771		$	329,303		$	675,235		$	430,566
Tax equivalent adjustment		1,144			1,104			1,135			2,279			2,213
Interest & Fees Income (FTE) (non-GAAP)		347,076			228,875			330,438			677,514			432,779
Interest Expense		118,471			12,868			94,983			213,454			24,161
Net Interest Income (FTE) (non-GAAP)		228,605			216,007			235,455			464,060			408,618
Provision for Credit Losses		11,440			(1,807	)		6,890			18,330			(5,217	)
Noninterest Income:
Fees from trust services		4,516			4,294			4,780			9,296			8,421
Fees from brokerage services		3,918			4,115			4,200			8,118			8,667
Fees from deposit services		9,325			10,830			9,362			18,687			20,978
Bankcard fees and merchant discounts		1,707			1,671			1,707			3,414			3,050
Other charges, commissions, and fees		949			785			1,138			2,087			1,544
Income from bank-owned life insurance		2,022			4,120			1,891			3,913			6,314
Income from mortgage banking activities		7,907			12,445			6,384			14,291			31,648
Mortgage loan servicing income		9,841			2,328			2,276			12,117			4,715
Net (losses) gains on investment securities		(7,336	)		1,182			(405	)		(7,741	)		931
Other noninterest income		2,329			1,838			1,411			3,740			3,365
Total Noninterest Income		35,178			43,608			32,744			67,922			89,633
Noninterest Expense:
Employee compensation		58,502			62,632			55,414			113,916			125,253
Employee benefits		12,236			12,047			13,435			25,671			24,898
Net occupancy		11,409			11,206			11,833			23,242			22,393
Data processing		7,256			7,549			7,473			14,729			14,920
Amortization of intangibles		1,279			1,379			1,279			2,558			2,758
OREO expense		315			46			667			982			228
Net losses (gains) on the sale of OREO properties		16			(454	)		(43	)		(27	)		(487	)
Equipment expense		8,026			7,310			6,996			15,022			14,645
FDIC insurance expense		4,570			3,004			4,587			9,157			5,677
Mortgage loan servicing expense and impairment		1,699			1,783			1,884			3,583			3,426
Expense for the reserve for unfunded loan commitments		(2,021	)		5,899			2,600			579			11,136
Other noninterest expense		32,001			28,773			31,294			63,295			55,502
Total Noninterest Expense		135,288			141,174			137,419			272,707			280,349
Income Before Income Taxes (FTE) (non-GAAP)		117,055			120,248			123,890			240,945			223,119
Tax equivalent adjustment		1,144			1,104			1,135			2,279			2,213
Income Before Income Taxes (GAAP)		115,911			119,144			122,755			238,666			220,906
Taxes		23,452			23,531			24,448			47,900			43,629
Net Income	$	92,459		$	95,613		$	98,307		$	190,766		$	177,277
MEMO: Effective Tax Rate		20.23	%		19.75	%		19.92	%		20.07	%		19.75	%

9

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 2023 Q-T-D Average			June 2022 Q-T-D Average			June 30 2023			December 31 2022			June 30 2022			March 31 2023
Cash & Cash Equivalents	$	1,282,923		$	2,105,669		$	1,692,357		$	1,176,652		$	1,658,486		$	1,918,693
Securities Available for Sale		4,320,055			4,824,655			4,005,324			4,541,925			4,812,704			4,419,413
Less: Allowance for credit losses		0			0			0			0			0			0
Net available for sale securities		4,320,055			4,824,655			4,005,324			4,541,925			4,812,704			4,419,413
Securities Held to Maturity		1,020			1,020			1,020			1,020			1,020			1,020
Less: Allowance for credit losses		(19	)		(19	)		(19	)		(18	)		(18	)		(18	)
Net held to maturity securities		1,001			1,001			1,001			1,002			1,002			1,002
Equity Securities		8,081			13,204			8,443			7,629			13,513			7,792
Other Investment Securities		332,904			246,312			327,946			322,048			246,399			349,380
Total Securities		4,662,041			5,085,172			4,342,714			4,872,604			5,073,618			4,777,587
Total Cash and Securities		5,944,964			7,190,841			6,035,071			6,049,256			6,732,104			6,696,280
Loans held for sale		72,966			263,039			91,296			56,879			220,689			68,176
Commercial Loans & Leases		14,980,069			14,210,173			15,083,157			14,986,117			14,136,614			14,998,881
Mortgage Loans		4,347,941			3,227,395			4,437,158			4,158,226			3,481,064			4,283,339
Consumer Loans		1,322,889			1,344,390			1,261,611			1,435,820			1,376,447			1,348,678
Gross Loans		20,650,899			18,781,958			20,781,926			20,580,163			18,994,125			20,630,898
Unearned income		(18,356	)		(26,280	)		(17,635	)		(21,997	)		(23,730	)		(18,739	)
Loans & Leases, net of unearned income		20,632,543			18,755,678			20,764,291			20,558,166			18,970,395			20,612,159
Allowance for Loan & Lease Losses		(240,611	)		(214,624	)		(250,721	)		(234,746	)		(213,729	)		(240,491	)
Net Loans		20,391,932			18,541,054			20,513,570			20,323,420			18,756,666			20,371,668
Mortgage Servicing Rights		14,662			22,644			4,627			21,022			22,593			19,987
Goodwill		1,888,889			1,889,186			1,888,889			1,888,889			1,888,889			1,888,889
Other Intangibles		17,164			22,519			16,339			18,897			21,655			17,618
Operating Lease Right-of-Use Asset		78,872			76,821			80,641			71,144			75,143			76,884
Other Real Estate Owned		4,070			13,943			3,756			2,052			13,847			4,086
Bank Owned Life Insurance		482,791			478,163			483,906			480,184			473,470			482,098
Other Assets		542,502			511,238			576,556			577,637			572,840			556,555
Total Assets	$	29,438,812		$	29,009,448		$	29,694,651		$	29,489,380		$	28,777,896		$	30,182,241
MEMO: Interest-earning Assets	$	26,121,011		$	25,626,411		$	26,335,600		$	26,135,400		$	25,356,669		$	26,826,111
Interest-bearing Deposits	$	15,520,461		$	15,588,089		$	15,918,927		$	15,103,488		$	15,425,240		$	15,576,926
Noninterest-bearing Deposits		6,500,259			7,587,565			6,450,826			7,199,678			7,601,409			6,707,660
Total Deposits		22,020,720			23,175,654			22,369,753			22,303,166			23,026,649			22,284,586
Short-term Borrowings		177,315			136,025			176,739			160,698			128,242			170,094
Long-term Borrowings		2,307,485			811,924			2,188,438			2,197,656			796,961			2,788,103
Total Borrowings		2,484,800			947,949			2,365,177			2,358,354			925,203			2,958,197
Operating Lease Liability		83,335			81,450			85,038			75,749			79,787			81,394
Other Liabilities		190,863			198,209			237,640			235,918			259,207			251,527
Total Liabilities		24,779,718			24,403,262			25,057,608			24,973,187			24,290,846			25,575,704
Preferred Equity		0			0			0			0			0			0
Common Equity		4,659,094			4,606,186			4,637,043			4,516,193			4,487,050			4,606,537
Total Shareholders’ Equity		4,659,094			4,606,186			4,637,043			4,516,193			4,487,050			4,606,537
Total Liabilities & Equity	$	29,438,812		$	29,009,448		$	29,694,651		$	29,489,380		$	28,777,896		$	30,182,241
MEMO: Interest-bearing Liabilities	$	18,005,261		$	16,536,038		$	18,284,104		$	17,461,842		$	16,350,443		$	18,535,123

10

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
Quarterly/Year-to-Date Share Data:	June 2023			June 2022			March 2023			June 2023			June 2022
Earnings Per Share:
Basic	$	0.68		$	0.71		$	0.73		$	1.42		$	1.31
Diluted	$	0.68		$	0.71		$	0.73		$	1.41		$	1.30
Common Dividend Declared Per Share	$	0.36		$	0.36		$	0.36		$	0.72		$	0.72
High Common Stock Price	$	35.61		$	37.81		$	42.45		$	42.45		$	39.80
Low Common Stock Price	$	27.68		$	33.11		$	33.35		$	27.68		$	33.11
Average Shares Outstanding (Net of Treasury Stock):
Basic		134,683,010			134,623,061			134,411,166			134,472,074			135,336,729
Diluted		134,849,818			134,863,650			134,840,328			134,748,868			135,634,398
Common Dividends	$	48,628		$	48,544		$	48,720		$	97,348		$	97,810
Dividend Payout Ratio		52.59	%		50.77	%		49.56	%		51.03	%		55.17	%
EOP Share Data:				June 30 2023			December 31 2022			June 30 2022			March 31 2023
Book Value Per Share				$	34.37		$	33.52		$	33.34		$	34.14
Tangible Book Value Per Share (non-GAAP) (1)				$	20.25		$	19.36		$	19.14		$	20.01
52-week High Common Stock Price				$	44.15		$	44.15		$	39.80		$	44.15
Date					11/11/22			11/11/22			01/13/22			11/11/22
52-week Low Common Stock Price				$	27.68		$	33.11		$	31.74		$	33.11
Date					5/12/23			5/2/22			09/20/21			5/2/22
EOP Shares Outstanding (Net of Treasury Stock):					134,934,858			134,745,122			134,580,646			134,936,551
Memorandum Items:
EOP Employees (full-time equivalent)					2,799			2,856			2,988			2,836
Note:
(1) Tangible Book Value Per Share:
Total Shareholders’ Equity (GAAP)				$	4,637,043		$	4,516,193		$	4,487,050		$	4,606,537
Less: Total Intangibles					(1,905,228	)		(1,907,786	)		(1,910,544	)		(1,906,507	)
Tangible Equity (non-GAAP)				$	2,731,815		$	2,608,407		$	2,576,506		$	2,700,030
÷ EOP Shares Outstanding (Net of Treasury Stock)					134,934,858			134,745,122			134,580,646			134,936,551
Tangible Book Value Per Share (non-GAAP)				$	20.25		$	19.36		$	19.14		$	20.01

11

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

	Three Months Ended June 2023								Three Months Ended June 2022									Three Months Ended March 2023
Selected Average Balances and Yields:	Average Balance			Interest(1)		Average Rate(1)			Average Balance				Interest(1)		Average Rate(1)			Average Balance			Interest(1)		Average Rate(1)
ASSETS:
Earning Assets:
Federal funds sold and securities purchased under agreements to resell and other short-term investments	$	994,072		$	12,706		5.13	%	$	1,737,146			$	4,841		1.12	%	$	936,394		$	10,983		4.76	%
Investment securities:
Taxable		4,274,123			36,721		3.44	%		4,665,307				24,558		2.11	%		4,404,864			36,259		3.29	%
Tax-exempt		387,918			2,718		2.80	%		419,865				2,794		2.66	%		387,671			2,740		2.83	%
Total securities		4,662,041			39,439		3.38	%		5,085,172				27,352		2.15	%		4,792,535			38,999		3.26	%
Loans and loans held for sale, net of unearned income (2)		20,705,509			294,931		5.71	%		19,018,717				196,682		4.15	%		20,683,610			280,456		5.49	%
Allowance for loan losses		(240,611	)							(214,624	)								(234,809	)
												��
Net loans and loans held for sale		20,464,898					5.78	%		18,804,093						4.19	%		20,448,801					5.55	%
Total earning assets		26,121,011		$	347,076		5.33	%		25,626,411			$	228,875		3.58	%		26,177,730		$	330,438		5.10	%
Other assets		3,317,801								3,383,037									3,334,559
TOTAL ASSETS	$	29,438,812							$	29,009,448								$	29,512,289
LIABILITIES:
Interest-Bearing Liabilities:
Interest-bearing deposits	$	15,520,461		$	91,577		2.37	%	$	15,588,089			$	9,751		0.25	%	$	15,186,632		$	68,592		1.83	%
Short-term borrowings		177,315			1,489		3.37	%		136,025				237		0.70	%		166,614			1,157		2.82	%
Long-term borrowings		2,307,485			25,405		4.42	%		811,924				2,880		1.42	%		2,417,999			25,234		4.23	%
Total interest-bearing liabilities		18,005,261			118,471		2.64	%		16,536,038				12,868		0.31	%		17,771,245			94,983		2.17	%
Noninterest-bearing deposits		6,500,259								7,587,565									6,897,030
Accrued expenses and other liabilities		274,198								279,659									273,726
TOTAL LIABILITIES		24,779,718								24,403,262									24,942,001
SHAREHOLDERS’ EQUITY		4,659,094								4,606,186									4,570,288
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	29,438,812							$	29,009,448								$	29,512,289
NET INTEREST INCOME				$	228,605								$	216,007							$	235,455
INTEREST RATE SPREAD							2.69	%								3.27	%							2.93	%
NET INTEREST MARGIN							3.51	%								3.38	%							3.63	%

(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.

12

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

	Six Months Ended June 2023								Six Months Ended June 2022
Selected Average Balances and Yields:	Average Balance			Interest(1)		Average Rate(1)			Average Balance			Interest(1)		Average Rate(1)
ASSETS:
Earning Assets:
Federal funds sold and securities purchased under agreements to resell and other short-term investments	$	965,393		$	23,689		4.95	%	$	2,379,418		$	7,170		0.61	%
Investment securities:
Taxable		4,339,132			72,980		3.36	%		4,466,170			42,063		1.88	%
Tax-exempt		387,795			5,458		2.81	%		432,135		��	5,483		2.54	%
Total securities		4,726,927			78,438		3.32	%		4,898,305			47,546		1.94	%
Loans and loans held for sale, net of unearned income(2)		20,694,619			575,387		5.60	%		18,775,823			378,063		4.06	%
Allowance for loan losses		(237,726	)							(215,316	)
Net loans and loans held for sale		20,456,893					5.67	%		18,560,507					4.10	%
Total earning assets		26,149,213		$	677,514		5.21	%		25,838,230		$	432,779		3.37	%
Other assets		3,324,719								3,338,261
TOTAL ASSETS	$	29,473,932							$	29,176,491
LIABILITIES:
Interest-Bearing Liabilities:
Interest-bearing deposits	$	15,354,468		$	160,169		2.10	%	$	15,747,191		$	18,312		0.23	%
Short-term borrowings		171,994			2,646		3.10	%		135,012			418		0.62	%
Long-term borrowings		2,362,437			50,639		4.32	%		814,628			5,431		1.34	%
Total interest-bearing liabilities		17,888,899			213,454		2.41	%		16,696,831			24,161		0.29	%
Noninterest-bearing deposits		6,697,549								7,527,570
Accrued expenses and other liabilities		272,575								269,099
TOTAL LIABILITIES		24,859,023								24,493,500
SHAREHOLDERS’ EQUITY		4,614,909								4,682,991
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	29,473,932							$	29,176,491
NET INTEREST INCOME				$	464,060							$	408,618
INTEREST RATE SPREAD							2.80	%							3.08	%
NET INTEREST MARGIN							3.57	%							3.18	%

(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.

13

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
Selected Financial Ratios:	June 2023			June 2022			March 2023			June 2023			June 2022
Return on Average Assets		1.26	%		1.32	%		1.35	%		1.31	%		1.23	%
Return on Average Shareholders’ Equity		7.96	%		8.33	%		8.72	%		8.34	%		7.63	%
Return on Average Tangible Equity (non-GAAP) (1)		13.47	%		14.23	%		14.97	%		14.20	%		12.90	%
Efficiency Ratio		51.51	%		54.61	%		51.46	%		51.48	%		56.52	%
Price / Earnings Ratio		10.84	x		12.37	x		12.10	x		10.50	x		13.45	x
Note:
(1) Return on Average Tangible Equity:
(a) Net Income (GAAP)	$	92,459		$	95,613		$	98,307		$	190,766		$	177,277
(b) Number of Days		91			91			90			181			181
Average Total Shareholders’ Equity (GAAP)	$	4,659,094		$	4,606,186		$	4,570,288		$	4,614,909		$	4,682,991
Less: Average Total Intangibles		(1,906,053	)		(1,911,705	)		(1,907,331	)		(1,906,689	)		(1,911,416	)
(c) Average Tangible Equity (non-GAAP)	$	2,753,041		$	2,694,481		$	2,662,957		$	2,708,220		$	2,771,575
Return on Average Tangible Equity (non-GAAP)\ [(a) / (b)] x 365 / (c)		13.47	%		14.23	%		14.97	%		14.20	%		12.90	%
Selected Financial Ratios:				June 30 2023			December 31 2022			June 30 2022			March 31 2023
Loans & Leases, net of unearned income / Deposit Ratio					92.82	%		92.18	%		82.38	%		92.50	%
Allowance for Loan & Lease Losses/ Loans & Leases, net of unearned income					1.21	%		1.14	%		1.13	%		1.17	%
Allowance for Credit Losses (2)/ Loans & Leases, net of unearned income					1.43	%		1.37	%		1.35	%		1.40	%
Nonaccrual Loans / Loans & Leases, net of unearned income					0.13	%		0.12	%		0.15	%		0.14	%
90-Day Past Due Loans/ Loans & Leases, net of unearned income					0.07	%		0.08	%		0.09	%		0.06	%
Non-performing Loans/ Loans & Leases, net of unearned income					0.20	%		0.29	%		0.37	%		0.21	%
Non-performing Assets/ Total Assets					0.15	%		0.21	%		0.29	%		0.15	%
Primary Capital Ratio					16.45	%		16.11	%		16.34	%		16.07	%
Shareholders’ Equity Ratio					15.62	%		15.31	%		15.59	%		15.26	%
Price / Book Ratio					0.86	x		1.21	x		1.05	x		1.03	x
Note:
(2) Includes allowances for loan losses and lending-related commitments.

14

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
Mortgage Banking Segment Data:	June 2023			June 2022			March 2023			June 2023			June 2022
Applications	$	588,734		$	1,159,102		$	505,840		$	1,094,574		$	2,855,606
Loans originated		416,255			955,152			312,077			728,332			1,961,516
Loans sold	$	399,632		$	1,072,623		$	301,476		$	701,108		$	2,242,748
Purchase money % of loans closed		94	%		86	%		92	%		93	%		79	%
Realized gain on sales and fees as a % of loans sold		2.27	%		2.40	%		2.17	%		2.23	%		2.59	%
Net interest income	$	2,155		$	2,870		$	2,122		$	4,277		$	5,187
Other income		19,946			21,468			10,861			30,807			44,865
Other expense		15,706			25,776			15,085			30,791			51,224
Income taxes		1,270			(285	)		(424	)		846			(228	)
Net income (loss)	$	5,125		$	(1,153	)	$	(1,678	)	$	3,447		$	(944	)
Period End Mortgage Banking Segment Data:				June 30 2023			December 31 2022			June 30 2022			March 31 2023
Locked pipeline				$	93,417		$	68,654		$	206,246		$	92,639
Balance of loans serviced				$	1,242,441		$	3,381,485		$	3,534,607		$	3,280,741
Number of loans serviced					12,843			23,510			24,226			22,436

15

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

Asset Quality Data:	June 30 2023		December 31 2022		June 30 2022		March 31 2023
EOP Non-Accrual Loans	$	26,545	$	23,685	$	28,386	$	29,296
EOP 90-Day Past Due Loans		15,007		15,565		16,443		13,105
EOP Restructured Loans (1)		n/a		19,388		25,504		n/a
Total EOP Non-performing Loans	$	41,552	$	58,638	$	70,333	$	42,401
EOP Other Real Estate Owned		3,756		2,052		13,847		4,086
Total EOP Non-performing Assets	$	45,308	$	60,690	$	84,180	$	46,487

	Three Months Ended									Six Months Ended
Allowance for Loan & Lease Losses:	June 30 2023			June 30 2022			March 31 2023			June 30 2023			June 30 2022
Beginning Balance	$	240,491		$	214,594		$	234,746		$	234,746		$	216,016
Gross Charge-offs		(2,274	)		(2,119	)		(2,936	)		(5,210	)		(3,595	)
Recoveries		1,065			3,060			1,791			2,856			6,516
Net (Charge-offs) Recoveries		(1,209	)		941			(1,145	)		(2,354	)		2,921
Provision for Loan & Lease Losses		11,439			(1,806	)		6,890			18,329			(5,208	)
Ending Balance	$	250,721		$	213,729		$	240,491		$	250,721		$	213,729
Reserve for lending-related commitments		46,768			42,579			48,789			46,768			42,579
Allowance for Credit Losses (2)	$	297,489		$	256,308		$	289,280		$	297,489		$	256,308

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 and June 30, 2022 non-performing loans and non-performing assets included $9,127 and $11,044, respectively, 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-days past due are included in the above respective non-performing loan and non-performing asset categories at June 30, 2023.

Restructured loans with an aggregate balance of $7,186 and $11,298 at December 31, 2022 and June 30, 2022, respectively, were on nonaccrual status, but are not included in “EOP Non-Accrual Loans” above. Restructured loans with an aggregate balance of $3,075 and $3,162 at December 31, 2022 and June 30, 2022, respectively, 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.

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