United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today
reported earnings for the fourth quarter of 2024 of $94.4 million,
or $0.69 per diluted share. Fourth quarter of 2024 results produced
annualized returns on average assets, average equity, and average
tangible equity, a non-GAAP measure, of 1.25%, 7.48%, and 12.03%,
respectively. Earnings for the year of 2024 were $373.0 million, or
$2.75 per diluted share, and returns on average assets, average
equity, and average tangible equity were 1.26%, 7.61%, and 12.43%,
respectively.
“UBSI capped off a successful 2024 with another high quality
quarter,” stated Richard M. Adams, Jr., United’s Chief Executive
Officer. “Strong earnings, credit, and capital continue to be the
story, and we also received regulatory approval of our acquisition
in Atlanta. As we turn our sights towards 2025, we are excited
about the opportunities we see in front of us.”
Earnings for the third quarter of 2024 were $95.3 million, or
$0.70 per diluted share, and annualized returns on average assets,
average equity, and average tangible equity were 1.28%, 7.72%, and
12.59%, respectively. Earnings for the fourth quarter of 2023 were
$79.4 million, or $0.59 per diluted share, and annualized returns
on average assets, average equity, and average tangible equity were
1.08%, 6.70%, and 11.27%, respectively. Earnings for the year of
2023 were $366.3 million, or $2.71 per diluted share, and returns
on average assets, average equity, and average tangible equity were
1.25%, 7.87%, and 13.33%, respectively. The fourth quarter of 2023
included approximately $12.0 million of noninterest expense for the
Federal Deposit Insurance Corporation’s (“FDIC”) special assessment
levied on banking organizations to recover losses to the Deposit
Insurance Fund.
On January 10, 2025, United consummated its acquisition of
Atlanta-based Piedmont Bancorp, Inc. (“Piedmont”). As of January
10, 2025, Piedmont had total assets of approximately $2.4 billion,
total loans of approximately $2.1 billion, total liabilities of
approximately $2.2 billion, total deposits of approximately $2.1
billion, and total shareholders’ equity of approximately $202
million. Merger-related expenses for the fourth quarter and year of
2024 were $1.3 million and $2.9 million, respectively.
Fourth quarter of 2024 compared to the third quarter of
2024
Earnings for the fourth quarter of 2024 were $94.4 million, or
$0.69 per diluted share, as compared to earnings of $95.3 million,
or $0.70 per diluted share, for the third quarter of 2024.
Net interest income for the fourth quarter of 2024 was $232.6
million, an increase of $2.4 million, or 1%, from the third quarter
of 2024. Tax-equivalent net interest income, a non-GAAP measure
which adjusts for the tax-favored status of income from certain
loans and investments, of $233.4 million for the fourth quarter of
2024 increased $2.3 million, or 1%, from the third quarter of 2024.
The increase in net interest income and tax-equivalent net interest
income was mainly due to a lower average rate paid on deposits and
an increase in average earning assets that was largely funded by
deposit growth. This increase in net interest income and
tax-equivalent net interest income was partially offset by a lower
yield on average net loans and loans held for sale. The yield on
average interest-bearing deposits decreased 26 basis points from
the third quarter of 2024. Average earning assets increased $556.2
million, or 2%, from the third quarter of 2024 due to a $419.7
million increase in average short-term investments, a $121.5
million increase in average net loans and loans held for sale, and
a $14.9 million increase in average investment securities. The
yield on average net loans and loans held for sale decreased 18
basis points from the third quarter of 2024. The net interest
margin was 3.49% for the fourth quarter of 2024 as compared to
3.52% for the third quarter of 2024.
The provision for credit losses was $6.7 million for the fourth
quarter of 2024 as compared to $6.9 million for the third quarter
of 2024.
Noninterest income for the fourth quarter of 2024 was $29.3
million, a decrease of $2.6 million, or 8%, from the third quarter
of 2024 driven by decreases in mortgage loan servicing income of
$7.4 million and income from mortgage banking activities of $2.2
million partially offset by lower net losses on investment
securities of $6.0 million and increases in several other
categories of noninterest income, none of which were significant.
During the third quarter of 2024, United sold its remaining
mortgage servicing rights (“MSRs”) at a gain of $7.1 million. The
decrease in income from mortgage banking activities was mainly due
to lower mortgage loan sale volume and a lower quarter-end
valuation of mortgage derivatives and mortgage loans held for sale.
Net losses on investment securities were $688 thousand for the
fourth quarter of 2024 compared to $6.7 million for the third
quarter of 2024. During the fourth quarter of 2024, $2.4 million of
losses on sales of $170.9 million of available for sale (“AFS”)
investment securities were partially offset by net unrealized fair
value gains on equity securities of $1.7 million. During the third
quarter of 2024, United sold $196.7 million of AFS investment
securities at a loss of $6.9 million.
Noninterest expense for the fourth quarter of 2024 of $134.2
million was flat from the third quarter of 2024, decreasing $1.2
million, or less than 1%. The slight decrease in noninterest
expense was driven by decreases in several categories of
noninterest expense, none of which were significant. Within other
noninterest expense, an increase in merger-related expenses was
mostly offset by lower amounts of certain general operating
expenses. Merger-related expenses for the fourth quarter of 2024
were $1.3 million as compared to $332 thousand for the third
quarter of 2024.
For the fourth quarter of 2024, income tax expense was $26.7
million as compared to $24.6 million for the third quarter of 2024.
The increase was driven by a higher effective tax rate and slightly
higher pre-tax earnings. United’s effective tax rate was 22.0% and
20.6% for the fourth quarter of 2024 and third quarter of 2024,
respectively. The higher effective tax rate was primarily due to
the impact of provision to return adjustments in the fourth quarter
of 2024.
Fourth quarter of 2024 compared to the fourth quarter of
2023
Earnings for the fourth quarter of 2024 were $94.4 million, or
$0.69 per diluted share, as compared to earnings of $79.4 million,
or $0.59 per diluted share, for the fourth quarter of 2023.
Net interest income for the fourth quarter of 2024 was $232.6
million, an increase of $2.9 million, or 1%, from the fourth
quarter of 2023. Tax-equivalent net interest income for the fourth
quarter of 2024 increased $2.8 million, or 1%, from the fourth
quarter of 2023. The increase in net interest income and
tax-equivalent net interest income was primarily due to an increase
in average short-term investments, a decrease in average long-term
borrowings, and loan growth. This increase in net interest income
and tax-equivalent net interest income was partially offset by a
lower yield on average short-term investments, an increase in
average interest-bearing deposits, and a decrease in average
investment securities. Average earning assets for the fourth
quarter of 2024 increased $812.0 million, or 3%, from the fourth
quarter of 2023 due to a $987.8 million increase in average
short-term investments and a $418.0 million increase in average net
loans and loans held for sale partially offset by a $593.7 million
decrease in average investment securities. Average long-term
borrowings decreased $854.1 million, or 61%, from the fourth
quarter of 2023. The yield on average short-term investments
decreased 78 basis points from the fourth quarter of 2023. Average
interest-bearing deposits increased $1.5 billion, or 9%, from the
fourth quarter of 2023. The net interest margin for the fourth
quarter of 2024 and 2023 was 3.49% and 3.55%, respectively.
The provision for credit losses was $6.7 million for the fourth
quarter of 2024 as compared to $6.9 million for the fourth quarter
of 2023.
Noninterest income for the fourth quarter of 2024 was $29.3
million, which was a decrease of $4.4 million, or 13%, from the
fourth quarter of 2023. This decrease in noninterest income was
driven by decreases in other noninterest income of $3.3 million and
income from mortgage banking activities of $2.4 million partially
offset by an increase in income from bank-owned life insurance
(“BOLI”) of $1.4 million. Other noninterest income for the fourth
quarter of 2023 included a $2.7 million gain from the payoff of a
fixed rate commercial loan that had an associated interest rate
swap derivative. The decrease in income from mortgage banking
activities was mainly due to lower mortgage loan origination and
sale volume. The increase in BOLI income was primarily due to the
impact of higher market values of underlying investments and higher
amounts of death benefits recognized in the fourth quarter of
2024.
Noninterest expense for the fourth quarter of 2024 decreased
$18.1 million, or 12%, from the fourth quarter of 2023. The
decrease in noninterest expense was driven by decreases in FDIC
insurance expense of $12.7 million, the expense for the reserve for
unfunded loan commitments of $4.0 million, and other noninterest
expense of $4.0 million partially offset by increases in employee
benefits of $3.9 million. FDIC insurance expense for the fourth
quarter of 2023 included $12.0 million for the FDIC special
assessment. The decrease in the expense for the reserve for
unfunded loan commitments was mainly due to a decrease in loan
commitments. The decrease in other noninterest expense was
primarily driven by a decrease in certain general operating
expenses and an impairment recognized during the fourth quarter of
2023 of trade name intangibles partially offset by merger-related
expenses recognized during the fourth quarter of 2024. The increase
in employee benefits was driven by higher health insurance costs
and higher postretirement benefit costs.
For the fourth quarter of 2024, income tax expense was $26.7
million as compared to $24.8 million for the fourth quarter of
2023. The increase was driven by higher pre-tax earnings partially
offset by a lower effective tax rate. United’s effective tax rate
was 22.0% and 23.8% for the fourth quarter of 2024 and fourth
quarter of 2023, respectively. The effective tax rates for the
fourth quarter of 2024 and 2023 reflect the impact of provision to
return adjustments during each period.
Year of 2024 compared to the year of 2023
Earnings for the year of 2024 were $373.0 million, or $2.75 per
diluted share, as compared to earnings of $366.3 million, or $2.71
per diluted share, for the year of 2023.
Net interest income for the year of 2024 decreased $8.9 million,
or 1%, from the year of 2023. Tax-equivalent net interest income
for the year of 2024 decreased $9.5 million, or 1%, from the year
of 2023. The decrease in net interest income and tax-equivalent net
interest income was primarily due to a higher average rate paid on
deposits, an increase in average interest-bearing deposits, a
decrease in average investment securities, and a decrease in
acquired loan accretion income. These decreases were partially
offset by a higher yield on average net loans and loans held for
sale, loan growth, a decrease in average long-term borrowings, and
an increase in average short-term investments. The yield on average
interest-bearing deposits increased 66 basis points from the year
of 2023. Average interest-bearing deposits increased $1.4 billion
from the year of 2023. Average investment securities decreased
$790.7 million from the year of 2023. Acquired loan accretion
income for the year of 2024 of $9.3 million was a decrease of $2.3
million from the year of 2023. The yield on average earning assets
increased 33 basis points from the year of 2023 to 5.74% driven by
an increase in the yield on average net loans and loans held for
sale of 28 basis points. Average net loans and loans held for sale
increased $683.7 million from the year of 2023. Average long-term
borrowings decreased $906.1 million from the year of 2023. Average
short-term investments increased $353.8 million from the year of
2023. The net interest margin for the year of 2024 and 2023 was
3.49% and 3.56%, respectively.
The provision for credit losses was $25.2 million for the year
of 2024 as compared to $31.2 million for the year of 2023.
Noninterest income for the year of 2024 was $123.7 million,
which was a decrease of $11.6 million, or 9%, from the year of
2023. Income from mortgage banking activities decreased $10.5
million from the year of 2023 mainly due to lower mortgage loan
origination and sale volume. Mortgage loan servicing income for the
year of 2024 of $9.0 million included a $7.1 million gain on the
sale of MSRs while mortgage loan servicing income for the year of
2023 of $13.7 million included $8.3 million in gains on sales of
MSRs with the remainder of the decrease due to lower serviced loan
balances. Other noninterest income decreased $3.3 million from the
year of 2023 primarily due to the aforementioned $2.7 million gain
from the payoff of a fixed rate commercial loan that had an
associated interest rate swap derivative in the fourth quarter of
2023. Fees from brokerage services increased $3.4 million from the
year of 2023 primarily due to higher volume. BOLI income increased
$2.9 million from the year of 2023 mainly due to higher market
values of underlying investments and higher amounts of death
benefits recognized during the year of 2024. Net losses on
investment securities of $7.7 million for the year of 2024 included
$16.0 million in losses on sales of AFS investment securities
partially offset by a $6.9 million gain on the VISA share exchange
and $1.7 million net unrealized fair value gains on equity
securities. Net losses on investment securities of $7.6 million for
the year of 2023 were driven by a $7.2 million loss on sale of AFS
investment securities during the second quarter of 2023.
Noninterest expense for the year of 2024 was $545.0 million, a
decrease of $15.2 million, or 3%, from the year of 2023 driven by
decreases in FDIC insurance expense of $10.6 million, the expense
for the reserve for unfunded loan commitments of $8.3 million,
mortgage loan servicing expense of $3.2 million, and amortization
of intangibles of $1.5 million. These decreases in noninterest
expense were partially offset by increases in employee benefits of
$5.3 million and employee compensation of $3.8 million. The
decrease in FDIC insurance expense was driven by $12.0 million in
expense recognized for the FDIC special assessment in 2023 as
compared to $1.5 million in 2024. The decrease in the expense for
the reserve for unfunded loan commitments was driven by decreases
in loan commitments. The decrease in mortgage loan servicing
expense was driven by the aforementioned sales of MSRs in 2023 and
2024. The decrease in the amortization of intangibles was due to
lower core deposit intangible balances. The increase in employee
benefits was primarily due to higher postretirement benefit costs.
The increase in employee compensation was driven by higher employee
incentives and base salaries, as well as employee severance
associated with the previously announced mortgage delivery channel
consolidation partially offset by lower employee commissions and
incentives related to mortgage banking production.
For the year of 2024, income tax expense was $91.6 million as
compared to $97.5 million for the year of 2023. The decrease was
primarily due to the impact of discrete tax benefits recognized in
the second quarter of 2024 and the impact of higher provision to
return adjustments recognized in the fourth quarter of 2023 as
compared to the fourth quarter of 2024. United’s effective tax rate
was 19.7% for the year of 2024 and 21.0% for the year of 2023.
Credit Quality
United’s asset quality continues to be sound. At December 31,
2024, non-performing loans (“NPLs”) were $73.4 million, or 0.34% of
loans & leases, net of unearned income. Total non-performing
assets (“NPAs”) were $73.7 million, including other real estate
owned (“OREO”) of $327 thousand, or 0.25% of total assets at
December 31, 2024. At September 30, 2024, NPLs were $65.2 million,
or 0.30% of loans & leases, net of unearned income. Total NPAs
were $65.4 million, including OREO of $169 thousand, or 0.22% of
total assets at September 30, 2024. At December 31, 2023, NPLs were
$45.5 million, or 0.21% of loans & leases, net of unearned
income. Total NPAs were $48.1 million, including OREO of $2.6
million, or 0.16% of total assets at December 31, 2023.
As of December 31, 2024, the allowance for loan & lease
losses was $271.8 million, or 1.25% of loans & leases, net of
unearned income. At September 30, 2024, the allowance for loan
& lease losses was $270.8 million, or 1.25% of loans &
leases, net of unearned income. At December 31, 2023, the allowance
for loan & lease losses was $259.2 million, or 1.21% of loans
& leases, net of unearned income.
Net charge-offs were $5.6 million, or 0.10% on an annualized
basis as a percentage of average loans & leases, net of
unearned income for the fourth quarter of 2024. Net charge-offs
were $3.6 million, or 0.07% on an annualized basis as a percentage
of average loans & leases, net of unearned income for the third
quarter of 2024. Net charge-offs were $2.5 million, or 0.05% on an
annualized basis as a percentage of average loans & leases, net
of unearned income for the fourth quarter of 2023. Net charge-offs
were $12.5 million for the year of 2024 compared to $6.7 million
for the year of 2023. Net charge-offs as a percentage of average
loans & leases, net of unearned income were 0.06% and 0.03% for
the years of 2024 and 2023, respectively.
Capital
United continues to be well-capitalized based upon regulatory
guidelines. United’s estimated risk-based capital ratio is 16.5% at
December 31, 2024, while estimated Common Equity Tier 1 capital,
Tier 1 capital, and leverage ratios are 14.2%, 14.2%, and 11.7%,
respectively. The December 31, 2024 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%. United
did not repurchase any shares of its common stock during 2024 or
2023.
About United Bankshares, Inc.
As of December 31, 2024, United had consolidated assets of
approximately $30 billion and is the 41st largest banking company
in the U.S. based on market capitalization. United is the parent
company of United Bank, which comprises more than 225 offices
located throughout Washington, D.C., Virginia, West Virginia,
Maryland, North Carolina, South Carolina, Ohio, Pennsylvania, and
Georgia. 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
December 31, 2024 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, 2024 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: 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; 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; risks relating to the
merger with Piedmont, including the successful integration of
operations of Piedmont; competition; changes in legislation or
regulatory requirements; and the impact of natural disasters,
extreme weather events, military conflict (including the
Russia/Ukraine conflict, the conflict in Israel and surrounding
areas, the possible expansion of such conflicts and potential
geopolitical consequences), terrorism or other geopolitical events.
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, 2023, 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
Year Ended
EARNINGS
SUMMARY:
December 2024
December 2023
September 2024
December 2024
December 2023
Interest income
$
376,034
$
369,175
$
382,723
$
1,502,121
$
1,401,320
Interest expense
143,426
139,485
152,467
591,053
481,396
Net interest income
232,608
229,690
230,256
911,068
919,924
Provision for credit losses
6,691
6,875
6,943
25,153
31,153
Noninterest income
29,318
33,675
31,942
123,695
135,258
Noninterest expense
134,176
152,287
135,339
545,031
560,224
Income before income taxes
121,059
104,203
119,916
464,579
463,805
Income taxes
26,651
24,813
24,649
91,583
97,492
Net income
$
94,408
$
79,390
$
95,267
$
372,996
$
366,313
PER COMMON
SHARE:
Net income:
Basic
$
0.70
$
0.59
$
0.70
$
2.76
$
2.72
Diluted
0.69
0.59
0.70
2.75
2.71
Cash dividends
$
0.37
$
0.37
0.37
1.48
1.45
Book value
36.74
36.89
35.36
Closing market price
$
37.10
$
37.55
$
37.55
Common shares outstanding:
Actual at period end, net of treasury
shares
135,220,770
135,346,628
134,949,063
Weighted average-basic
135,235,641
134,691,360
135,158,476
134,947,592
134,505,058
Weighted average-diluted
135,732,069
134,984,970
135,504,911
135,225,417
134,753,820
FINANCIAL
RATIOS:
Return on average assets
1.25
%
1.08
%
1.28
%
1.26
%
1.25
%
Return on average shareholders’ equity
7.48
%
6.70
%
7.72
%
7.61
%
7.87
%
Return on average tangible equity
(non-GAAP)(1)
12.03
%
11.27
%
12.59
%
12.43
%
13.33
%
Average equity to average assets
16.72
%
16.11
%
16.64
%
16.57
%
15.89
%
Net interest margin
3.49
%
3.55
%
3.52
%
3.49
%
3.56
%
PERIOD END
BALANCES:
December 31
2024
December 31
2023
September 30
2024
June 30 2024
Assets
$
30,023,545
$
29,926,482
$
29,863,262
$
29,957,418
Earning assets
26,650,661
26,623,652
26,461,342
26,572,087
Loans & leases, net of unearned
income
21,673,493
21,359,084
21,621,968
21,598,727
Loans held for sale
44,360
56,261
46,493
66,475
Investment securities
3,259,296
4,125,754
3,538,415
3,650,582
Total deposits
23,961,859
22,819,319
23,828,345
23,066,440
Shareholders’ equity
4,993,223
4,771,240
4,967,820
4,856,633
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
Year Ended
December
December
September
June
December
December
2024
2023
2024
2024
2024
2023
Interest & Loan Fees Income
(GAAP)
$
376,034
$
369,175
$
382,723
$
374,184
$
1,502,121
$
1,401,320
Tax equivalent adjustment
795
866
828
867
3,362
4,014
Interest & Fees Income (FTE)
(non-GAAP)
376,829
370,041
383,551
375,051
1,505,483
1,405,334
Interest Expense
143,426
139,485
152,467
148,469
591,053
481,396
Net Interest Income (FTE) (non-GAAP)
233,403
230,556
231,084
226,582
914,430
923,938
Provision for Credit Losses
6,691
6,875
6,943
5,779
25,153
31,153
Noninterest Income:
Fees from trust services
5,156
4,508
4,904
4,744
19,450
18,318
Fees from brokerage services
4,978
4,360
5,073
4,959
20,277
16,911
Fees from deposit services
9,473
9,107
9,413
9,326
37,183
37,076
Bankcard fees and merchant discounts
2,056
1,923
1,775
1,355
7,059
7,013
Other charges, commissions, and fees
868
924
890
869
3,485
3,861
Income from bank-owned life insurance
3,226
1,855
3,032
2,549
11,225
8,330
Income from mortgage banking
activities
2,314
4,746
4,544
3,901
16,057
26,593
Mortgage loan servicing income
-
783
7,385
783
8,957
13,746
Net (losses) gains on investment
securities
(688
)
276
(6,715
)
(218
)
(7,720
)
(7,646
)
Other noninterest income
1,935
5,193
1,641
1,955
7,722
11,056
Total Noninterest Income
29,318
33,675
31,942
30,223
123,695
135,258
Noninterest Expense:
Employee compensation
58,343
57,829
58,481
58,501
234,618
230,809
Employee benefits
13,719
9,771
13,084
12,147
53,621
48,368
Net occupancy
11,070
11,690
11,271
11,400
46,084
46,426
Data processing
7,437
7,261
7,456
7,290
29,646
29,395
Amortization of intangibles
910
1,279
909
910
3,639
5,116
OREO expense
45
188
104
268
576
1,355
Net losses (gains) on the sale of OREO
properties
10
(126
)
(34
)
32
(75
)
(60
)
Equipment expense
7,474
7,539
7,811
7,548
29,686
29,731
FDIC insurance expense
3,884
16,621
4,338
5,058
19,735
30,376
Mortgage loan servicing expense and
impairment
-
962
403
1,011
2,429
5,596
Expense for the reserve for unfunded loan
commitments
(3,062
)
940
(2,766
)
(2,177
)
(9,795
)
(1,483
)
Other noninterest expense
34,346
38,333
34,282
32,786
134,867
134,595
Total Noninterest Expense
134,176
152,287
135,339
134,774
545,031
560,224
Income Before Income Taxes (FTE)
(non-GAAP)
121,854
105,069
120,744
116,252
467,941
467,819
Tax equivalent adjustment
795
866
828
867
3,362
4,014
Income Before Income Taxes
(GAAP)
121,059
104,203
119,916
115,385
464,579
463,805
Taxes
26,651
24,813
24,649
18,878
91,583
97,492
Net Income
$
94,408
$
79,390
$
95,267
$
96,507
$
372,996
$
366,313
MEMO: Effective Tax Rate
22.01
%
23.81
%
20.56
%
16.36
%
19.71
%
21.02
%
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 2024
December 2023
December 31
December 31
September 30
Q-T-D Average
Q-T-D Average
2024
2023
2024
Cash & Cash Equivalents
$
2,036,079
$
1,073,118
$
2,292,244
$
1,598,943
$
1,908,832
Securities Available for Sale
3,245,428
3,710,447
2,959,719
3,786,377
3,239,501
Less: Allowance for credit losses
-
-
-
-
-
Net available for sale securities
3,245,428
3,710,447
2,959,719
3,786,377
3,239,501
Securities Held to Maturity
1,020
1,020
1,020
1,020
1,020
Less: Allowance for credit losses
(19
)
(18
)
(18
)
(17
)
(19
)
Net held to maturity securities
1,001
1,002
1,002
1,003
1,001
Equity Securities
9,012
8,598
21,058
8,945
9,082
Other Investment Securities
288,453
311,922
277,517
329,429
288,831
Total Securities
3,543,894
4,031,969
3,259,296
4,125,754
3,538,415
Total Cash and Securities
5,579,973
5,105,087
5,551,540
5,724,697
5,447,247
Loans held for sale
45,143
53,499
44,360
56,261
46,493
Commercial Loans & Leases
16,093,104
15,510,282
16,152,453
15,535,204
16,015,679
Mortgage Loans
4,709,802
4,576,046
4,702,720
4,728,374
4,722,997
Consumer Loans
873,961
1,156,339
825,325
1,109,607
892,377
Gross Loans
21,676,867
21,242,667
21,680,498
21,373,185
21,631,053
Unearned income
(8,862
)
(16,722
)
(7,005
)
(14,101
)
(9,085
)
Loans & Leases, net of unearned
income
21,668,005
21,225,945
21,673,493
21,359,084
21,621,968
Allowance for Loan & Lease Losses
(270,751
)
(255,032
)
(271,844
)
(259,237
)
(270,767
)
Net Loans
21,397,254
20,970,913
21,401,649
21,099,847
21,351,201
Mortgage Servicing Rights
-
4,573
-
4,554
-
Goodwill
1,888,889
1,888,889
1,888,889
1,888,889
1,888,889
Other Intangibles
9,446
14,569
8,866
12,505
9,776
Operating Lease Right-of-Use Asset
82,505
80,622
81,742
86,986
82,114
Other Real Estate Owned
190
2,885
327
2,615
169
Bank-Owned Life Insurance
495,839
484,987
497,181
486,895
495,784
Other Assets
513,487
558,122
548,991
563,233
541,589
Total Assets
$
30,012,726
$
29,164,146
$
30,023,545
$
29,926,482
$
29,863,262
MEMO: Interest-earning Assets
$
26,687,835
$
25,875,812
$
26,650,661
$
26,623,652
$
26,461,342
Interest-bearing Deposits
$
17,871,685
$
16,414,152
$
17,826,446
$
16,670,239
$
17,790,247
Noninterest-bearing Deposits
6,099,264
6,175,309
6,135,413
6,149,080
6,038,098
Total Deposits
23,970,949
22,589,461
23,961,859
22,819,319
23,828,345
Short-term Borrowings
180,070
198,453
176,090
196,095
181,969
Long-term Borrowings
540,247
1,394,361
540,420
1,789,103
540,091
Total Borrowings
720,317
1,592,814
716,510
1,985,198
722,060
Operating Lease Liability
87,935
85,063
86,771
92,885
88,464
Other Liabilities
214,456
199,128
265,182
257,840
256,573
Total Liabilities
24,993,657
24,466,466
25,030,322
25,155,242
24,895,442
Preferred Equity
-
-
-
-
-
Common Equity
5,019,069
4,697,680
4,993,223
4,771,240
4,967,820
Total Shareholders' Equity
5,019,069
4,697,680
4,993,223
4,771,240
4,967,820
Total Liabilities & Equity
$
30,012,726
$
29,164,146
$
30,023,545
$
29,926,482
$
29,863,262
MEMO: Interest-bearing
Liabilities
$
18,592,002
$
18,006,966
$
18,542,956
$
18,655,437
$
18,512,307
UNITED BANKSHARES, INC. AND
SUBSIDIARIES
Washington, D.C. and
Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per
Share Data)
Three Months Ended
Year Ended
December
December
September
June
December
December
Quarterly/Year-to-Date Share Data:
2024
2023
2024
2024
2024
2023
Earnings Per Share:
Basic
$
0.70
$
0.59
$
0.70
$
0.71
$
2.76
$
2.72
Diluted
$
0.69
$
0.59
$
0.70
$
0.71
$
2.75
$
2.71
Common Dividend Declared Per
Share
$
0.37
$
0.37
$
0.37
$
0.37
$
1.48
$
1.45
High Common Stock Price
$
44.43
$
38.74
$
39.93
$
36.08
$
44.43
$
42.45
Low Common Stock Price
$
35.31
$
25.35
$
31.47
$
30.68
$
30.68
$
25.35
Average Shares Outstanding (Net of
Treasury Stock):
Basic
135,235,641
134,691,360
135,158,476
135,137,901
134,947,592
134,505,058
Diluted
135,732,069
134,984,970
135,504,911
135,314,785
135,225,417
134,753,820
Common Dividends
$
50,259
$
50,066
$
50,213
$
50,204
$
200,889
$
196,120
Dividend Payout Ratio
53.24
%
63.06
%
52.71
%
52.02
%
53.86
%
53.54
%
December 31
December 31
September 30
June 30
EOP Share
Data:
2024
2023
2024
2024
Book Value Per Share
$
36.89
$
35.36
$
36.74
$
35.92
Tangible Book Value Per Share (non-GAAP)
(1)
$
22.87
$
21.27
$
22.70
$
21.87
52-week High Common Stock Price
$
44.43
$
42.45
$
39.93
$
38.74
Date
11/25/24
2/3/23
7/31/24
12/14/23
52-week Low Common Stock Price
$
30.68
$
25.35
$
25.35
$
25.35
Date
06/11/24
10/24/23
10/24/23
10/24/23
EOP Shares
Outstanding (Net of Treasury Stock):
135,346,628
134,949,063
135,220,770
135,195,704
Memorandum
Items:
Employees (full-time equivalent)
2,591
2,736
2,651
2,644
Note:
(1) Tangible Book Value Per Share:
Total Shareholders' Equity (GAAP)
$
4,993,223
$
4,771,240
$
4,967,820
$
4,856,633
Less: Total Intangibles
(1,897,755
)
(1,901,394
)
(1,898,665
)
(1,899,574
)
Tangible Equity (non-GAAP)
$
3,095,468
$
2,869,846
$
3,069,155
$
2,957,059
÷ EOP Shares Outstanding (Net of Treasury
Stock)
135,346,628
134,949,063
135,220,770
135,195,704
Tangible Book Value Per Share
(non-GAAP)
$
22.87
$
21.27
$
22.70
$
21.87
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 2024
Three Months Ended
December 2023
Three Months Ended
September 2024
Selected Average
Balances and Yields:
Average
Average
Average
Average
Average
Average
ASSETS:
Balance
Interest(1)
Rate(1)
Balance
Interest(1)
Rate(1)
Balance
Interest(1)
Rate(1)
Earning Assets:
Federal funds sold and securities
purchased under agreements to resell and other short-term
investments
$
1,807,207
$
21,876
4.82
%
$
819,431
$
11,570
5.60
%
$
1,387,462
$
19,241
5.52
%
Investment securities:
Taxable
3,242,979
29,244
3.61
%
3,836,498
35,710
3.72
%
3,218,258
30,797
3.83
%
Tax-exempt
195,252
1,374
2.81
%
195,471
1,471
3.01
%
205,080
1,461
2.85
%
Total securities
3,438,231
30,618
3.56
%
4,031,969
37,181
3.69
%
3,423,338
32,258
3.77
%
Loans and loans held for sale, net of
unearned income (2)
21,713,148
324,335
5.95
%
21,279,444
321,290
6.00
%
21,588,333
332,052
6.12
%
Allowance for loan losses
(270,751
)
(255,032
)
(267,457
)
Net loans and loans held for sale
21,442,397
6.02
%
21,024,412
6.07
%
21,320,876
6.20
%
Total earning assets
26,687,835
$
376,829
5.62
%
25,875,812
$
370,041
5.68
%
26,131,676
$
383,551
5.85
%
Other assets
3,324,891
3,288,334
3,371,648
TOTAL ASSETS
$
30,012,726
$
29,164,146
$
29,503,324
LIABILITIES:
Interest-Bearing Liabilities:
Interest-bearing deposits
$
17,871,685
$
135,690
3.02
%
$
16,414,152
$
122,132
2.95
%
$
17,399,368
$
143,313
3.28
%
Short-term borrowings
180,070
1,630
3.60
%
198,453
1,998
3.99
%
191,954
2,048
4.24
%
Long-term borrowings
540,247
6,106
4.50
%
1,394,361
15,355
4.37
%
748,608
7,106
3.78
%
Total interest-bearing liabilities
18,592,002
143,426
3.07
%
18,006,966
139,485
3.07
%
18,339,930
152,467
3.31
%
Noninterest-bearing deposits
6,099,264
6,175,309
5,957,184
Accrued expenses and other liabilities
302,391
284,191
297,344
TOTAL LIABILITIES
24,993,657
24,466,466
24,594,458
SHAREHOLDERS’ EQUITY
5,019,069
4,697,680
4,908,866
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY
$
30,012,726
$
29,164,146
$
29,503,324
NET INTEREST INCOME
$
233,403
$
230,556
$
231,084
INTEREST RATE SPREAD
2.55
%
2.61
%
2.54
%
NET INTEREST MARGIN
3.49
%
3.55
%
3.52
%
Notes:
(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.
UNITED BANKSHARES, INC. AND
SUBSIDIARIES
Washington, D.C. and
Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per
Share Data)
Year Ended
December 2024
Year Ended
December 2023
Selected Average
Balances and Yields:
Average
Average
Average
Average
ASSETS:
Balance
Interest(1)
Rate(1)
Balance
Interest(1)
Rate(1)
Earning Assets:
Federal funds sold and securities
purchased under agreements to resell and other short-term
investments
$
1,253,832
$
66,207
5.28
%
$
900,077
$
47,069
5.23
%
Investment securities:
Taxable
3,424,113
128,731
3.76
%
4,125,467
144,420
3.50
%
Tax-exempt
205,427
5,796
2.82
%
294,802
8,411
2.85
%
Total securities
3,629,540
134,527
3.71
%
4,420,269
152,831
3.46
%
Loans and loans held for sale, net of
unearned income (2)
21,612,707
1,304,749
6.04
%
20,909,248
1,205,434
5.77
%
Allowance for loan losses
(265,171
)
(245,386
)
Net loans and loans held for sale
21,347,536
6.11
%
20,663,862
5.83
%
Total earning assets
26,230,908
$
1,505,483
5.74
%
25,984,208
$
1,405,334
5.41
%
Other assets
3,349,451
3,311,450
TOTAL ASSETS
$
29,580,359
$
29,295,658
LIABILITIES:
Interest-Bearing Liabilities:
Interest-bearing deposits
$
17,171,286
$
539,805
3.14
%
$
15,782,761
$
391,094
2.48
%
Short-term borrowings
195,406
7,966
4.08
%
182,936
6,449
3.53
%
Long-term borrowings
1,017,823
43,282
4.25
%
1,923,924
83,853
4.36
%
Total interest-bearing liabilities
18,384,515
591,053
3.21
%
17,889,621
481,396
2.69
%
Noninterest-bearing deposits
5,994,009
6,475,051
Accrued expenses and other liabilities
300,766
276,883
TOTAL LIABILITIES
24,679,290
24,641,555
SHAREHOLDERS’ EQUITY
4,901,069
4,654,103
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
$
29,580,359
$
29,295,658
NET INTEREST INCOME
$
914,430
$
923,938
INTEREST RATE SPREAD
2.53
%
2.72
%
NET INTEREST MARGIN
3.49
%
3.56
%
Notes:
(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.
UNITED BANKSHARES, INC. AND
SUBSIDIARIES
Washington, D.C. and
Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per
Share Data)
Three Months Ended
Year Ended
December
December
September
June
December
December
Selected
Financial Ratios:
2024
2023
2024
2024
2024
2023
Return on Average Assets
1.25
%
1.08
%
1.28
%
1.32
%
1.26
%
1.25
%
Return on Average Shareholders’ Equity
7.48
%
6.70
%
7.72
%
7.99
%
7.61
%
7.87
%
Return on Average Tangible Equity
(non-GAAP) (1)
12.03
%
11.27
%
12.59
%
13.12
%
12.43
%
13.33
%
Efficiency Ratio
51.23
%
57.82
%
51.62
%
52.66
%
52.67
%
53.09
%
Price / Earnings Ratio
13.53
x
16.00
x
13.22
x
11.40
x
13.64
x
13.85
x
Note:
(1) Return on Average Tangible Equity:
(a) Net Income (GAAP)
$
94,408
$
79,390
$
95,267
$
96,507
$
372,996
$
366,313
(b) Number of Days
92
92
92
91
366
365
Average Total Shareholders' Equity
(GAAP)
$
5,019,069
$
4,697,680
$
4,908,866
$
4,857,893
$
4,901,069
$
4,654,103
Less: Average Total Intangibles
(1,898,335
)
(1,903,458
)
(1,899,261
)
(1,900,164
)
(1,899,704
)
(1,905,390
)
(c) Average Tangible Equity (non-GAAP)
$
3,120,734
$
2,794,222
$
3,009,605
$
2,957,729
$
3,001,365
$
2,748,713
Return on Average Tangible Equity
(non-GAAP) [(a) / (b)] x 366 or 365 / (c)
12.03
%
11.27
%
12.59
%
13.12
%
12.43
%
13.33
%
Selected
Financial Ratios:
December 31
2024
December 31
2023
September 30
2024
June 30 2024
Loans & Leases, net of unearned income
/ Deposit Ratio
90.45
%
93.60
%
90.74
%
93.64
%
Allowance for Loan & Lease Losses /
Loans & Leases, net of unearned income
1.25
%
1.21
%
1.25
%
1.24
%
Allowance for Credit Losses(2) / Loans
& Leases, net of unearned income
1.42
%
1.42
%
1.43
%
1.43
%
Nonaccrual Loans / Loans & Leases, net
of unearned income
0.26
%
0.14
%
0.24
%
0.25
%
90-Day Past Due Loans / Loans &
Leases, net of unearned income
0.08
%
0.07
%
0.06
%
0.06
%
Non-performing Loans / Loans & Leases,
net of unearned income
0.34
%
0.21
%
0.30
%
0.30
%
Non-performing Assets / Total Assets
0.25
%
0.16
%
0.22
%
0.23
%
Primary Capital Ratio
17.47
%
16.79
%
17.49
%
17.06
%
Shareholders' Equity Ratio
16.63
%
15.94
%
16.64
%
16.21
%
Price / Book Ratio
1.02
x
1.06
x
1.01
x
0.90
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)
Three Months Ended
Year Ended
December 31
December 31
September 30
June 30
December 31
December 31
Mortgage Banking
Data: (1)
2024
2023
2024
2024
2024
2023
Loans originated
$
132,381
$
225,319
$
151,333
$
185,322
$
645,942
$
860,901
Loans sold
134,514
228,672
171,315
163,273
657,843
861,519
December 31
December 31
September 30
June 30
Mortgage Loan
Servicing Data: (2)
2024
2023
2024
2024
Balance of loans serviced
$
-
$
1,202,448
$
-
$
1,138,443
Number of loans serviced
-
12,419
-
11,853
December 31
December 31
September 30
June 30
Asset Quality
Data:
2024
2023
2024
2024
EOP Non-Accrual Loans
$
56,460
$
30,919
$
52,446
$
52,929
EOP 90-Day Past Due Loans
16,940
14,579
12,794
12,402
Total EOP Non-performing Loans
$
73,400
$
45,498
$
65,240
$
65,331
EOP Other Real Estate Owned
327
2,615
169
2,156
Total EOP Non-performing Assets
$
73,727
$
48,113
$
65,409
$
67,487
Three Months Ended
Year Ended
December 31
December 31
September 30
June 30
December 31
December 31
Allowance for
Loan & Lease Losses:
2024
2023
2024
2024
2024
2023
Beginning Balance
$
270,767
$
254,886
$
267,423
$
262,905
$
259,237
$
234,746
Gross Charge-offs
(6,509
)
(3,258
)
(4,903
)
(2,542
)
(17,530
)
(11,304
)
Recoveries
894
733
1,304
1,281
4,985
4,641
Net Charge-offs
(5,615
)
(2,525
)
(3,599
)
(1,261
)
(12,545
)
(6,663
)
Provision for Loan & Lease Losses
6,692
6,876
6,943
5,779
25,152
31,154
Ending Balance
$
271,844
$
259,237
$
270,767
$
267,423
$
271,844
$
259,237
Reserve for lending-related
commitments
34,911
44,706
37,973
40,739
34,911
44,706
Allowance for Credit Losses (3)
$
306,755
$
303,943
$
308,740
$
308,162
$
306,755
$
303,943
Notes:
(1) During the first quarter of 2024,
United completed its previously announced consolidation of its
mortgage delivery channels. Based on an evaluation performed in
accordance with ASC 280, Segment Reporting, beginning with the
periods as of March 31, 2024, United operates one reportable
business segment. Mortgage banking data above is presented on a
consolidated basis for all current and prior periods.
(2) As previously disclosed, United sold
its remaining mortgage servicing rights during the third quarter of
2024.
(3) Includes allowances for loan losses
and lending-related commitments.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250124255504/en/
W. Mark Tatterson Chief Financial Officer (800) 445-1347 ext.
8716
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