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.
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UNITED BANKSHARES, INC. AND SUBSIDIARIES FINANCIAL SUMMARY (In Thousands Except for Per Share Data) |
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| Three Months Ended | Year Ended | |||||||||||||||
|
December 31 |
December 31 |
December 31 |
December 31 |
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| 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 |
December 31 |
December 31 |
September 30 |
|||||||||||||
| 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 | ||||||||||||
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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) |
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||||||||||||||||||||||||||||
| 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 |
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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) |
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| 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. | ||||||||||||||||||||
