United Bankshares, Inc. Announces Earnings for the Second Quarter and First Half of 2021

July 23, 2021 07:50 AM Eastern Daylight Time

WASHINGTON & CHARLESTON, W.Va.--(BUSINESS WIRE)--United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today reported earnings for the second quarter and first half of 2021. Earnings for the second quarter of 2021 were $94.8 million, or $0.73 per diluted share, as compared to earnings of $52.7 million, or $0.44 per diluted share, for the second quarter of 2020. Earnings for the first half of 2021 were $201.7 million, or $1.56 per diluted share, as compared to earnings of $92.9 million, or $0.84 per diluted share, for the first half of 2020.

Second quarter 2021 results produced annualized returns on average assets, average equity and average tangible common equity, a non-GAAP measure, of 1.41%, 8.69% and 14.95%, respectively, compared to annualized returns on average assets, average equity and average tangible equity of 0.87%, 5.40% and 9.58%, respectively, for the second quarter of 2020. For the first half of 2021, United’s annualized returns on average assets, average equity and average tangible equity were 1.52%, 9.32% and 16.06%, respectively, compared to annualized returns on average assets, average equity and average tangible equity of 0.85%, 5.16% and 9.28%, respectively, for the first half of 2020.

Earnings for the second quarter and first half of 2021, as compared to the second quarter and first half of 2020, benefited from additional net earnings related to the Carolina Financial Corporation (“Carolina Financial”) acquisition and a lower provision for credit losses primarily due to better performance trends within the loan portfolio and an improved future macroeconomic forecast under the Current Expected Credit Loss (“CECL”) accounting standard. The second quarter and first half of 2020 also included significant merger-related expenses from the Carolina Financial acquisition.

During the second quarter of 2021, United announced that it entered into a definitive merger agreement with Community Bankers Trust Corporation (“Community Bankers Trust”). Under the merger agreement, United will acquire 100% of the outstanding shares of Community Bankers Trust in exchange for common shares of United. The combined organization will be approximately $29 billion in assets with nearly 250 locations in some of the most desirable banking markets in the nation. The merger is expected to close in the fourth quarter of 2021, subject to satisfaction of customary closing conditions, including receipt of customary regulatory approvals and approval by the shareholders of Community Bankers Trust.

“Our earnings continued to be strong in the second quarter of 2021 as we earned net income of $94.8 million, diluted earnings per share of $0.73 and delivered an annualized return on average assets of 1.41%,” stated Richard M. Adams, United’s Chairman of the Board and Chief Executive Officer. “We were also pleased to announce the intent to acquire Community Bankers Trust Corporation during the second quarter, our 33^rd acquisition of the current administration as we continue to strengthen United’s position as one of the largest and best performing regional banking companies in the Mid-Atlantic and Southeast.”

The results of operations for Carolina Financial are included in the consolidated results of operations from the date of acquisition, May 1, 2020. As a result of the acquisition, the second quarter and first half of 2021 reflected higher average balances, income, and expense as compared to the second quarter and first half of 2020. The second quarter and first half of 2020 included merger-related expenses of $46.4 million and $48.0 million, respectively, associated with the acquisition of Carolina Financial compared to $183 thousand of merger-related expenses incurred in the second quarter and first half of 2021 related to the announced Community Bankers Trust acquisition.

Net Interest Income and Net Interest Margin

Net interest income for the second quarter of 2021 was $186.5 million, which was an increase of $15.9 million, or 9%, from the second quarter of 2020. 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 2021 increased $16.0 million, or 9%, from the second quarter of 2020 to $187.6 million. The increase in net interest income and tax-equivalent net interest income was primarily due to lower interest expense on deposits and borrowings, reflecting a decline in market interest rates, and due to an increase in average earning assets from the Carolina Financial acquisition and Paycheck Protection Program (“PPP”) loans. The net interest spread for the second quarter of 2021 increased 10 basis points from the second quarter of 2020 due to a 43 basis point decrease in the average cost of funds partially offset by a 33 basis point decrease in the average yield on earning assets. Average earning assets for the second quarter of 2021 increased $2.3 billion, or 11%, from the second quarter of 2020 due to a $1.4 billion increase in average short-term investments, a $537.2 million increase in average investment securities, and a $420.0 million increase in average net loans and loans held for sale. Net PPP loan fee income of $9.0 million was recognized in the second quarter of 2021 driven primarily by loan forgiveness, as compared to $4.5 million for the second quarter of 2020. The net interest margin of 3.14% for the second quarter of 2021 was a decrease of 4 basis points from the net interest margin of 3.18% for the second quarter of 2020.

Net interest income for the first six months of 2021 was $377.5 million, which was an increase of $65.4 million, or 21%, from the first six months of 2020. Tax-equivalent net interest income for the first six months of 2021 was $379.6 million, an increase of $65.7 million, or 21%, from the first six months of 2020. The increase in net interest income and tax-equivalent net interest income was primarily due to lower interest expense as well as an increase in average earning assets from the Carolina Financial acquisition and PPP loans. The net interest spread for the first six months of 2021 increased 20 basis points from the first six months of 2020 due to a 67 basis point decrease in the average cost of funds partially offset by a 47 basis point decrease in the average yield on earning assets. Average earning assets for the first six months of 2021 increased $4.3 billion, or 22%, from the first six months of 2020 due to a $2.2 billion increase in average net loans and loans held for sale, a $1.5 billion increase in average short-term investments and a $555.7 million increase in average investment securities. Net PPP loan fee income of $20.3 million was recognized in the first half of 2021 driven primarily by loan forgiveness, as compared to $4.5 million for the first half of 2020. The net interest margin of 3.22% for the first six months of 2021 was a decrease of 2 basis points from the net interest margin of 3.24% for the first six months of 2020.

On a linked-quarter basis, net interest income for the second quarter of 2021 decreased $4.4 million, or 2%, from the first quarter of 2021. United’s tax-equivalent net interest income for the second quarter of 2021 also decreased $4.4 million, or 2%, from the first quarter of 2021. The net interest spread for the second quarter of 2021 of 2.98% decreased 16 basis points from the first quarter of 2021 due to a 19 basis point decrease in the average yield on earning assets partially offset by a 3 basis point decrease in the average cost of funds. Net PPP loan fee income for the second quarter of 2021 decreased $2.3 million from the first quarter of 2021. Average earning assets increased approximately $460.3 million, or 2%, from the first quarter of 2021 due mainly to increases in average short-term investments of $616.1 million and average investment securities of $252.0 million partially offset by a decrease in average net loans and loans held for sale of $407.8 million driven primarily by PPP loan forgiveness. The net interest margin of 3.14% for the second quarter of 2021 was a decrease of 16 basis points from the net interest margin of 3.30% for the first quarter of 2021.

Credit Quality

United’s asset quality continues to be sound relative to the current economic environment. At June 30, 2021, nonperforming loans were $102.6 million, or 0.61% of loans & leases, net of unearned income, down from $132.2 million, or 0.75% of loans & leases, net of unearned income, at December 31, 2020. Total nonperforming assets of $121.1 million, including other real estate owned (“OREO”) of $18.5 million at June 30, 2021, represented 0.45% of total assets as compared to nonperforming assets of $154.8 million, including OREO of $22.6 million, or 0.59% of total assets at December 31, 2020.

The provision for credit losses was a net benefit of $8.9 million and $8.7 million for the second quarter and first half of 2021, respectively, while the provision for credit losses was $45.9 million and $73.0 million, respectively, for the second quarter and first half of 2020. The second quarter of 2020 included a provision for loan losses of $29.0 million recorded on purchased non-credit deteriorated (“non-PCD”) loans from Carolina Financial. The decrease in the provision in relation to the prior year quarter and first half of 2020 was also driven by the impact of better performance trends within the loan portfolio and improvements in the reasonable and supportable forecasts of future macroeconomic conditions on the estimate of expected credit losses under CECL. On a linked-quarter basis, the provision for credit losses for the second quarter of 2021 decreased $9.0 million from $143 thousand for the first quarter of 2021.

As of June 30, 2021, the allowance for loan losses was $217.5 million, or 1.29% of loans & leases, net of unearned income, as compared to $235.8 million, or 1.34% of loans & leases, net of unearned income, at December 31, 2020. Net charge-offs were $5.2 million and $4.3 million for the second quarter of 2021 and 2020, respectively. Net charge-offs were $9.8 million and $11.0 million for the first six months of 2021 and 2020, respectively. Annualized net charge-offs as a percentage of average loans & leases, net of unearned income were 0.12% and 0.11% for the second quarter and first half of 2021, respectively, compared to 0.10% and 0.15% for the second quarter and first half of 2020. Net charge-offs were $4.5 million for the first quarter of 2021.

Noninterest Income

Noninterest income for the second quarter of 2021 was $62.8 million, which was a decrease of $25.5 million, or 29%, from the second quarter of 2020 primarily driven by a $31.3 million decrease in income from mortgage banking activities due primarily to the mark-to-market impact of a declining interest rate lock commitment pipeline. Partially offsetting the decrease in noninterest income were increases in fees from deposit services of $1.3 million and fees from brokerage services of $1.0 million.

Noninterest income for the first six months of 2021 was $155.4 million, which was an increase of $30.2 million, or 24%, from the first six months of 2020. The increase was driven primarily by $16.5 million increase in income from mortgage banking activities due to an elevated volume of mortgage loan originations and sales in the secondary market as well as the addition of mortgage banking operations from the Carolina Financial acquisition. Mortgage loan servicing income for the first half of 2021 was $4.7 million compared to $1.5 million for the first half of 2020 as a result of the Carolina Financial acquisition. The first half of 2021 also included fees from deposit services of $18.3 million, an increase of $2.3 million from the first half of 2020 and fees from brokerage services of $8.0 million, an increase of $2.4 million from the first half of 2020.

On a linked-quarter basis, noninterest income for the second quarter of 2021 decreased $29.7 million, or 32%, from the first quarter of 2021 primarily due to a decrease of $28.5 million in income from mortgage banking activities due mainly to a lower pipeline valuation and tightening sales margins.

Noninterest Expense

Noninterest expense for the second quarter of 2021 was $139.0 million, a decrease of $10.4 million, or 7%, from the second quarter of 2020, primarily due to a decrease of $9.0 million in data processing expense which included a $9.7 million contract termination penalty incurred in the second quarter of 2020 associated with the Carolina Financial acquisition. Other expenses decreased $3.3 million primarily due to merger-related expenses incurred in the second quarter of 2020 associated with the Carolina Financial acquisition.

Noninterest expense for the first six months of 2021 was $287.9 million, an increase of $37.4 million, or 15%, from the first six months of 2020. Employee compensation increased $27.8 million from the first half of 2020 due to the Carolina Financial acquisition as well as due to higher employee incentives and commissions expense mainly related to higher mortgage banking production. Additionally, noninterest expense increased from the first half of 2020 due to increases of $6.4 million in employee benefits, $4.1 million in mortgage loan servicing expense and impairment, $3.0 million in equipment expense, $2.5 million in OREO expense, $1.7 million in net occupancy expense and $1.1 million in other expenses. Within other expenses, the largest driver of the increase was an increase in the amortization of income tax credits of $1.9 million. The increase in OREO expense was due mainly to declines in the fair value of OREO properties while the increases in employee benefits, mortgage loan servicing expense and impairment, equipment expense and net occupancy expense were mainly from the Carolina Financial acquisition. Partially offsetting the increase in noninterest expense was a decrease in data processing expense, primarily due to the contract termination penalty incurred in the second quarter of 2020.

On a linked-quarter basis, noninterest expense for the second quarter of 2021 decreased $10.0 million, or 7%, from the first quarter of 2021 primarily due to decreases of $3.9 million in employee compensation and $3.3 million in OREO expense. Employee compensation declined from the first quarter of 2021 primarily due to a decline in commissions and incentives mainly related to mortgage banking operations recognized in the second quarter of 2021 while the decline in OREO expense was due mainly to fewer declines in the fair value of OREO properties.

Income Tax Expense

For the second quarter and first six months of 2021, income tax expense was $24.5 million and $52.0 million as compared to $11.0 million and $20.9 million, respectively, for the second quarter and first six months of 2020. The increases from the comparative periods last year were primarily due to higher earnings and a higher effective tax rate. On a linked-quarter basis, income tax expense decreased $3.1 million primarily due to lower earnings. United’s effective tax rate was 20.5% for the second quarter of 2021, 17.3% for the second quarter of 2020 and 20.5% for the first quarter of 2021. For the first six months of 2021 and 2020, United’s effective tax rate was 20.5% and 18.4%, respectively.

Regulatory Capital

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 15.9% at June 30, 2021 while estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 13.7%, 13.7% and 10.3%, respectively. The June 30, 2021 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%.

About United Bankshares, Inc.

As of June 30, 2021, United had consolidated assets of approximately $27.2 billion. United is the parent company of United Bank which has 223 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".

Cautionary Statements

The Company is required under generally accepted accounting principles to evaluate subsequent events through the filing of its June 30, 2021 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, 2021 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, tangible equity, return on 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 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 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 common 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, reform of LIBOR; the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations, including those involving the OCC, 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; risks relating to the merger with Community Bankers Trust, including the successful integration of operations of Community Bankers Trust; 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, 2020, 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.

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
EARNINGS SUMMARY:	June 2021			June 2020			June 2021			June 2020
Interest income	$	200,186		$	198,717		$	405,843		$	379,199
Interest expense		13,669			28,115			28,366			67,079
Net interest income		186,517			170,602			377,477			312,120
Provision for credit losses		(8,879	)		45,911			(8,736	)		73,030
Noninterest income		62,846			88,390			155,419			125,196
Noninterest expense		138,951			149,374			287,878			250,507
Income before income taxes		119,291			63,707			253,754			113,779
Income taxes		24,455			11,021			52,020			20,910
Net income	$	94,836		$	52,686		$	201,734		$	92,869

PER COMMON SHARE:
Net income:
Basic	$	0.73		$	0.44		$	1.56		$	0.84
Diluted		0.73			0.44			1.56			0.84
Cash dividends	$	0.35		$	0.35			0.70			0.70
Book value								34.01			32.35
Closing market price							$	36.50		$	27.66
Common shares outstanding:
Actual at period end, net of treasury shares								129,203,593			129,755,395
Weighted average-basic		128,750,851			119,823,652			128,693,616			110,559,363
Weighted average-diluted		129,033,988			119,887,823			128,946,280			110,624,976

FINANCIAL RATIOS:
Return on average assets		1.41	%		0.87	%		1.52	%		0.85	%
Return on average shareholders’ equity		8.69	%		5.40	%		9.32	%		5.16	%
Return on average tangible equity (non-GAAP)⁽¹⁾		14.95	%		9.58	%		16.06	%		9.28	%
Average equity to average assets		16.21	%		16.07	%		16.31	%		16.47	%
Net interest margin		3.14	%		3.18	%		3.22	%		3.24	%

PERIOD END BALANCES:	June 30 2021			June 30 2020			December 31 2020			March 31 2021
Assets	$	27,190,926		$	26,234,973		$	26,184,247		$	27,030,755
Earning assets		24,129,532			23,253,983			23,172,403			24,023,292
Loans & leases, net of unearned income		16,888,001			17,992,402			17,591,413			17,365,891
Loans held for sale		576,827			625,984			718,937			808,134
Investment securities		3,511,501			3,062,198			3,186,184			3,402,922
Total deposits		21,567,391			19,893,843			20,585,160			21,396,474
Shareholders’ equity		4,393,713			4,197,855			4,297,620			4,332,698

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

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
		2021			2020			2021			2021			2020
Interest & Loan Fees Income (GAAP)	$	200,186		$	198,717		$	205,657		$	405,843		$	379,199
Tax equivalent adjustment		1,075			1,018			1,047			2,122			1,800
Interest & Fees Income (FTE) (non-GAAP)		201,261			199,735			206,704			407,965			380,999
Interest Expense		13,669			28,115			14,697			28,366			67,079
Net Interest Income (FTE) (non-GAAP)		187,592			171,620			192,007			379,599			313,920

Provision for Credit Losses		(8,879	)		45,911			143			(8,736	)		73,030

Noninterest Income:
Fees from trust services		4,193			3,261			3,763			7,956			6,744
Fees from brokerage services		3,654			2,651			4,323			7,977			5,567
Fees from deposit services		9,396			8,055			8,896			18,292			16,012
Bankcard fees and merchant discounts		1,368			718			1,064			2,432			1,711
Other charges, commissions, and fees		775			610			759			1,534			1,128
Income from bank-owned life insurance		1,658			1,291			1,403			3,061			3,679
Income from mortgage banking activities		36,943			68,213			65,395			102,338			85,844
Mortgage loan servicing income		2,386			1,534			2,355			4,741			1,534
Net gains on investment securities		24			1,510			2,609			2,633			1,706
Other noninterest income		2,449			547			2,006			4,455			1,271
Total Noninterest Income		62,846			88,390			92,573			155,419			125,196

Noninterest Expense:
Employee compensation		68,557			68,664			72,412			140,969			113,205
Employee benefits		14,470			12,779			15,450			29,920			23,565
Net occupancy		10,101			10,318			10,941			21,042			19,380
Data processing		6,956			15,926			7,026			13,982			21,432
Amortization of intangibles		1,467			1,646			1,466			2,933			3,223
OREO expense		372			607			3,625			3,997			1,513
Equipment expense		5,830			5,004			6,044			11,874			8,849
FDIC insurance expense		1,800			2,782			2,000			3,800			5,182
Mortgage loan servicing expense and impairment		3,599			2,510			3,177			6,776			2,648
Other expenses		25,799			29,138			26,786			52,585			51,510
Total Noninterest Expense		138,951			149,374			148,927			287,878			250,507

Income Before Income Taxes (FTE) (non-GAAP)		120,366			64,725			135,510			255,876			115,579

Tax equivalent adjustment		1,075			1,018			1,047			2,122			1,800

Income Before Income Taxes (GAAP)		119,291			63,707			134,463			253,754			113,779

Taxes		24,455			11,021			27,565			52,020			20,910

Net Income	$	94,836		$	52,686		$	106,898		$	201,734		$	92,869

MEMO: Effective Tax Rate		20.50	%		17.30	%		20.50	%		20.50	%		18.38	%

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 2021			June 2020			June 30			December 31			June 30
	Q-T-D Average			Q-T-D Average				2021			2020			2020

Cash & Cash Equivalents	$	3,203,664		$	1,803,632		$	3,677,396		$	2,209,068		$	2,062,813

Securities Available for Sale		3,234,581			2,671,202			3,277,074			2,953,359			2,799,941
Less: Allowance for credit losses		0			0			0			0			0
Net available for sale securities		3,234,581			2,671,202			3,277,074			2,953,359			2,799,941
Securities Held to Maturity		1,020			1,235			1,020			1,235			1,235
Less: Allowance for credit losses		(23	)		(10	)		(31	)		(23	)		(14	)
Net held to maturity securities		997			1,225			989			1,212			1,221
Equity Securities		11,454			8,940			11,507			10,718			9,875
Other Investment Securities		221,093			249,555			221,931			220,895			251,161
Total Securities		3,468,125			2,930,922			3,511,501			3,186,184			3,062,198
Total Cash and Securities		6,671,789			4,734,554			7,188,897			5,395,252			5,125,011

Loans held for sale		618,306			566,381			576,827			718,937			625,984

Commercial Loans & Leases		13,068,138			11,795,853			12,723,654			13,165,497			13,043,554
Mortgage Loans		2,950,453			3,730,995			2,946,352			3,197,274			3,745,085
Consumer Loans		1,224,973			1,259,424			1,251,646			1,259,812			1,243,915

Gross Loans		17,243,564			16,786,272			16,921,652			17,622,583			18,032,554
Unearned income		(36,437	)		(7,645	)		(33,651	)		(31,170	)		(40,152	)
Loans & Leases, net of unearned income		17,207,127			16,778,627			16,888,001			17,591,413			17,992,402
Allowance for Loan & Leases Losses		(231,422	)		(170,947	)		(217,545	)		(235,830	)		(215,121	)
Net Loans		16,975,705			16,607,680			16,670,456			17,355,583			17,777,281

Mortgage Servicing Rights		22,385			21,171			22,540			20,955			20,200
Goodwill		1,810,045			1,679,530			1,810,040			1,796,848			1,794,779
Other Intangibles		24,875			29,153			23,990			26,923			31,108
Operating Lease Right-of-Use Asset		68,191			65,115			66,635			69,520			70,655
Other Real Estate Owned		18,740			17,797			18,474			22,595			29,947
Other Assets		795,922			681,219			813,067			777,634			760,008
Total Assets	$	27,005,958		$	24,402,600		$	27,190,926		$	26,184,247		$	26,234,973

MEMO: Interest-earning Assets	$	23,967,740		$	21,653,742		$	24,129,532		$	23,172,403		$	23,253,983

Interest-bearing Deposits	$	13,219,572		$	11,600,243		$	13,283,937		$	13,179,900		$	12,797,269
Noninterest-bearing Deposits		8,227,147			6,412,124			8,283,454			7,405,260			7,096,574
Total Deposits		21,446,719			18,012,367			21,567,391			20,585,160			19,893,843

Short-term Borrowings		136,801			144,866			127,745			142,300			176,168
Long-term Borrowings		814,151			2,070,557			814,022			864,369			1,633,891
Total Borrowings		950,952			2,215,423			941,767			1,006,669			1,810,059

Operating Lease Liability		72,254			68,917			70,546			73,213			74,435
Other Liabilities		157,135			184,604			217,509			221,585			258,781
Total Liabilities		22,627,060			20,481,311			22,797,213			21,886,627			22,037,118

Preferred Equity		0			0			0			0			0
Common Equity		4,378,898			3,921,289			4,393,713			4,297,620			4,197,855
Total Shareholders' Equity		4,378,898			3,921,289			4,393,713			4,297,620			4,197,855

Total Liabilities & Equity	$	27,005,958		$	24,402,600		$	27,190,926		$	26,184,247		$	26,234,973

MEMO: Interest-bearing Liabilities	$	14,170,524		$	13,815,666		$	14,225,704		$	14,186,569		$	14,607,328

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:		2021			2020			2021			2021			2020
Earnings Per Share:
Basic	$	0.73		$	0.44		$	0.83		$	1.56		$	0.84
Diluted	$	0.73		$	0.44		$	0.83		$	1.56		$	0.84
Common Dividend Declared Per Share	$	0.35		$	0.35		$	0.35		$	0.70		$	0.70
High Common Stock Price	$	42.50		$	33.12		$	41.61		$	42.50		$	39.07
Low Common Stock Price	$	36.19		$	21.52		$	31.57		$	31.57		$	19.67

Average Shares Outstanding (Net of Treasury Stock):
Basic		128,750,851			119,823,652			128,635,740			128,693,616			110,559,363
Diluted		129,033,988			119,887,823			128,890,861			128,946,280			110,624,976

Common Dividends	$	45,268		$	45,416		$	45,254		$	90,522		$	81,020
Dividend Payout Ratio		47.73	%		86.20	%		42.33	%		44.87	%		87.24	%


							June 30			June 30			March
EOP Share Data:								2021			2020			2021
Book Value Per Share							$	34.01		$	32.35		$	33.54
Tangible Book Value Per Share (non-GAAP) ⁽¹⁾							$	19.81		$	18.28		$	19.38
52-week High Common Stock Price							$	42.50		$	40.70		$	41.61
Date							05/18/21			11/05/19			03/18/21
52-week Low Common Stock Price							$	20.57		$	19.67		$	20.57
Date							09/25/20			03/23/20			09/25/20

EOP Shares Outstanding (Net of Treasury Stock):								129,203,593			129,755,395			129,175,800

Memorandum Items:
EOP Employees (full-time equivalent)								3,012			3,039			3,033

Note:
(1) Tangible Book Value Per Share:
Total Shareholders' Equity (GAAP)							$	4,393,713		$	4,197,855		$	4,332,698
Less: Total Intangibles								(1,834,030	)		(1,825,887	)		(1,829,495	)
Tangible Equity (non-GAAP)							$	2,559,683		$	2,371,968		$	2,503,203
÷ EOP Shares Outstanding (Net of Treasury Stock)								129,203,593			129,755,395			129,175,800
Tangible Book Value Per Share (non-GAAP)							$	19.81		$	18.28		$	19.38

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
		2021			2020				2021				2021				2020
Selected Yields and Net Interest Margin:
Net Loans and Loans held for sale		4.18	%		4.21	%			4.26	%			4.22	%			4.38	%
Investment Securities		1.87	%		2.44	%			1.93	%			1.90	%			2.56	%
Money Market Investments/FFS		0.24	%		0.49	%			0.34	%			0.28	%			1.04	%
Average Earning Assets Yield		3.37	%		3.70	%			3.56	%			3.46	%			3.93	%
Interest-bearing Deposits		0.33	%		0.67	%			0.37	%			0.35	%			0.90	%
Short-term Borrowings		0.54	%		0.54	%			0.51	%			0.52	%			0.93	%
Long-term Borrowings		1.22	%		1.68	%			1.23	%			1.23	%			1.95	%
Average Liability Costs		0.39	%		0.82	%			0.42	%			0.40	%			1.07	%
Net Interest Spread		2.98	%		2.88	%			3.14	%			3.06	%			2.86	%
Net Interest Margin		3.14	%		3.18	%			3.30	%			3.22	%			3.24	%

Selected Financial Ratios:
Return on Average Assets		1.41	%		0.87	%			1.64	%			1.52	%			0.85	%
Return on Average Shareholders’ Equity		8.69	%		5.40	%			9.97	%			9.32	%			5.16	%
Return on Average Tangible Equity (non-GAAP) ⁽¹⁾		14.95	%		9.58	%			17.20	%			16.06	%			9.28	%
Efficiency Ratio		55.72	%		57.68	%			52.53	%			54.02	%			57.28	%

Note:
(1) Return on Average Tangible Equity:
(a) Net Income (GAAP)	$	94,836		$	52,686			$	106,898			$	201,734			$	92,869
(b) Number of Days		91			91				90				181				182
Average Total Shareholders' Equity (GAAP)	$	4,378,898		$	3,921,289			$	4,346,750			$	4,363,053			$	3,620,425
Less: Average Total Intangibles		(1,834,920	)		(1,708,683	)			(1,825,639	)			(1,830,305	)			(1,607,977	)
(c) Average Tangible Equity (non-GAAP)	$	2,543,978		$	2,212,606			$	2,521,111			$	2,532,748			$	2,012,448
Return on Average Tangible Equity (non-GAAP) [(a) / (b)] x 365 or 366 / (c)		14.95	%		9.58	%			17.20	%			16.06	%			9.28	%



Selected Financial Ratios:				June 30 2021				June 30 2020				December 31 2020				March 31 2021
Loans & Leases, net of unearned income / Deposit Ratio					78.30	%			90.44	%			85.46	%			81.16	%
Allowance for Loan & Lease Losses/ Loans & Leases, net of unearned income					1.29	%			1.20	%			1.34	%			1.33	%
Allowance for Credit Losses ⁽²⁾/ Loans & Leases, net of unearned income					1.41	%			1.26	%			1.45	%			1.45	%
Nonaccrual Loans / Loans & Leases, net of unearned income					0.24	%			0.38	%			0.36	%			0.28	%
90-Day Past Due Loans/ Loans & Leases, net of unearned income					0.08	%			0.06	%			0.08	%			0.09	%
Non-performing Loans/ Loans & Leases, net of unearned income					0.61	%			0.87	%			0.75	%			0.67	%
Non-performing Assets/ Total Assets					0.45	%			0.71	%			0.59	%			0.50	%
Primary Capital Ratio					16.89	%			16.72	%			17.22	%			16.80	%
Shareholders' Equity Ratio					16.16	%			16.00	%			16.41	%			16.03	%
Price / Book Ratio					1.07		x		0.85		x		0.97		x		1.15		x
Price / Earnings Ratio					12.42		x		15.74		x		11.35		x		11.63		x

Note:
(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 and Number of Loans Serviced)


	Three Months Ended									Six Months Ended
	June			June			March			June			June
		2021			2020			2021			2021			2020
Mortgage Banking Segment Data:
Applications	$	2,029,846		$	2,189,008		$	2,630,426		$	4,660,272		$	4,243,008
Loans originated		1,658,128			1,692,297			1,910,619			3,568,747			2,597,246
Loans sold	$	1,877,772		$	1,636,063		$	1,817,884		$	3,695,656		$	2,429,455
Purchase money % of loans closed		69	%		42	%		43	%		55	%		44	%
Realized gain on sales and fees as a % of loans sold		2.90	%		2.49	%		4.16	%		3.52	%		2.60	%
Net interest income	$	2,871		$	2,246		$	2,650		$	5,521		$	3,195
Other income		39,764			71,013			67,507			107,271			92,203
Other expense		36,390			35,261			41,183			77,573			56,018
Income taxes		1,280			6,946			5,940			7,220			7,219
Net income	$	4,965		$	31,052		$	23,034		$	27,999		$	32,161

				June 30			June 30			December 31			March 31
Period End Mortgage Banking Segment Data:					2021			2020			2020			2021
Locked pipeline				$	660,258		$	889,275		$	989,640		$	979,842
Balance of loans serviced				$	3,674,023		$	3,552,292		$	3,587,953		$	3,585,890
Number of loans serviced					25,526			25,609			25,614			25,443

				June 30			June 30			December 31			March 31
					2021			2020			2020			2021
Asset Quality Data:
EOP Non-Accrual Loans				$	41,182		$	67,669		$	62,718		$	48,985
EOP 90-Day Past Due Loans					14,135			11,150			13,832			15,719
EOP Restructured Loans ⁽¹⁾					47,271			77,436			55,657			51,529
Total EOP Non-performing Loans				$	102,588		$	156,255		$	132,207		$	116,233
EOP Other Real Estate Owned					18,474			29,947			22,595			18,690
Total EOP Non-performing Assets				$	121,062		$	186,202		$	154,802		$	134,923

	Three Months Ended									Six Months Ended
	June			June			March			June			June
Allowance for Loan Losses:		2021			2020			2021			2021			2020
Beginning Balance	$	231,582		$	154,923		$	235,830		$	235,830		$	77,057
Cumulative Effect Adjustment for CECL		0			0			0			0			57,442
		231,582			154,923			235,830			235,830			134,499
Initial allowance for acquired PCD loans		0			18,635			0			0			18,635
Gross Charge-offs		(6,131	)		(5,634	)		(6,957	)		(13,088	)		(14,395	)
Recoveries		910			1,290			2,415			3,325			3,363
Net Charge-offs		(5,221	)		(4,344	)		(4,542	)		(9,763	)		(11,032	)
Provision for Loan & Lease Losses		(8,816	)		45,907			294			(8,522	)		73,019
Ending Balance	$	217,545		$	215,121		$	231,582		$	217,545		$	215,121
Reserve for lending-related commitments		20,897			11,946			20,024			20,897			11,946
Allowance for Credit Losses ⁽²⁾	$	238,442		$	227,067		$	251,606		$	238,442		$	227,067

Notes:
(1) Restructured loans with an aggregate balance of $32,471, $59,916, $41,185 and $38,023 at June 30, 2021, June 30, 2020, December 31, 2020 and March 31, 2021 respectively, were on nonaccrual status, but are not included in “EOP Non-Accrual Loans” above. A restructured loan with a balance of $46 thousand at June 30, 2021 was 90 days past due, but not included in “EOP Non-Accrual Loans” above.
(2) Includes allowances for loan losses and lending-related commitments.

Contacts

W. Mark Tatterson
Chief Financial Officer
(800) 445-1347 ext. 8716

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