United Bankshares, Inc. Announces Earnings for the Fourth Quarter and Year of 2023

United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today reported earnings for the fourth quarter of 2023 of $79.4 million, or $0.59 per diluted share. Fourth quarter of 2023 results produced annualized returns on average assets, average equity and average tangible equity, a non-GAAP measure, of 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, for the year of 2023.

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.

“We closed the year with another excellent quarter,” stated Richard M. Adams, Jr., United’s Chief Executive Officer. “We saw loan growth, deposit growth, margin expansion, and strong asset quality metrics and capital levels. I’m proud of what we accomplished in the quarter and for the full year of 2023.”

Earnings for the third quarter of 2023 were $96.2 million, or $0.71 per diluted share, and annualized returns on average assets, average equity and average tangible equity for the third quarter of 2023 were 1.31%, 8.14% and 13.71%, respectively. Earnings for the fourth quarter of 2022 were $99.8 million, or $0.74 per diluted share, and annualized returns on average assets, average equity and average tangible equity were 1.36%, 8.80% and 15.28%, respectively, for the fourth quarter of 2022. Earnings for the year of 2022 were $379.6 million, or $2.80 per diluted share, and returns on average assets, average equity and average tangible equity were 1.31%, 8.25% and 14.11%, respectively, for the year of 2022.

Fourth quarter of 2023 compared to the third quarter of 2023

Net interest income for the fourth quarter of 2023 increased $1.2 million, or 1%, from the third quarter of 2023. Tax-equivalent net interest income, a non-GAAP measure which adjusts for the tax-favored status of income from certain loans and investments, for the fourth quarter of 2023 also increased $1.2 million, or 1%, from the third quarter of 2023. The increase in net interest income and tax-equivalent net interest income was primarily due to organic loan growth and a higher yield on net loans and loans held for sale partially offset by higher interest expense driven by the impact of deposit rate repricing. Average net loans and loans held for sale increased $313.9 million, or 6% on an annualized basis, from the third quarter of 2023. The yield on average net loans and loans held for sale increased 15 basis points to 6.07% for the fourth quarter of 2023. The yield on average interest-bearing deposits increased 25 basis points to 2.95% for the fourth quarter of 2023. The net interest margin of 3.55% for the fourth quarter of 2023 was an increase of 1 basis point from the net interest margin of 3.54% for the third quarter of 2023.

The provision for credit losses was $6.9 million for the fourth quarter of 2023 as compared to $5.9 million for the third quarter of 2023. The higher amount of provision expense for the fourth quarter of 2023 as compared to the third quarter of 2023 was mainly due to the impact of reasonable and supportable forecasts of future macroeconomic conditions and loan growth.

Noninterest income for the fourth quarter of 2023 was flat from the third quarter of 2023, increasing $14 thousand, or less than 1%. Other noninterest income increased $3.1 million to $5.2 million for the fourth quarter of 2023 driven by a $2.7 million gain from the payoff of a fixed rate commercial loan that had an associated interest rate swap derivative. Mostly offsetting the increase in other noninterest income was a $2.8 million decrease in income from mortgage banking activities primarily due to a lower quarter-end valuation of our mortgage derivatives and a lower margin on loans sold.

Noninterest expense for the fourth quarter of 2023 increased $17.1 million, or 13%, from the third quarter of 2023. The increase in noninterest expense was primarily due to the $12.0 million FDIC special assessment and increases of $5.4 million in other noninterest expense and $3.9 million in the expense for the reserve for unfunded loan commitments. These increases in noninterest expense were partially offset by decreases of $3.2 million in employee benefits and $1.2 million in employee compensation. The increase in other noninterest expense was driven by an increase of $2.4 million of tax credit investment amortization, an increase of $1.9 million of expense related to community development lending programs and $1.3 million related to trade name intangible impairments. The decrease in employee benefits was primarily due to lower postretirement benefit costs, lower health insurance costs and lower Federal Insurance Contributions Act (“FICA”) costs. The decrease in employee compensation was primarily due to lower headcount.

Income tax expense was $24.8 million for both the fourth and third quarters of 2023. United’s effective tax rate was 23.8% and 20.5% for the fourth quarter of 2023 and third quarter of 2023, respectively. The higher effective tax rate was primarily driven by the impact of provision to return adjustments in the fourth quarter of 2023.

Fourth quarter of 2023 compared to the fourth quarter of 2022

Earnings for the fourth quarter of 2023 were $79.4 million, or $0.59 per diluted share, as compared to earnings of $99.8 million, or $0.74 per diluted share, for the fourth quarter of 2022.

Net interest income for the fourth quarter of 2023 decreased $19.7 million, or 8%, from the fourth quarter of 2022. Tax-equivalent net interest income for the fourth quarter of 2023 decreased $20.0 million, or 8%, from the fourth quarter of 2022. The decrease in net interest income and tax-equivalent net interest income was primarily due to higher interest expense driven by deposit rate repricing partially offset by the impact of rising market interest rates on earning assets and organic loan growth. The average cost of funds increased 170 basis points from the fourth quarter of 2022 to 3.07% driven by an increase in the yield on average interest-bearing deposits of 179 basis points. The yield on average earning assets increased 91 basis points from the fourth quarter of 2022 to 5.68% driven by increases in the yield on average net loans and loans held for sale of 89 basis points and in the yield on average investment securities of 64 basis points. Average net loans and loans held for sale increased $903.6 million, or 4%, from the fourth quarter of 2022. The net interest margin of 3.55% for the fourth quarter of 2023 was a decrease of 32 basis points from the net interest margin of 3.87% for the fourth quarter of 2022.

The provision for credit losses was $6.9 million for the fourth quarter of 2023 as compared to $16.4 million for the fourth quarter of 2022.

Noninterest income for the fourth quarter of 2023 was $33.7 million, an increase of $2.8 million, or 9%, from the fourth quarter of 2022 driven by an increase of $2.7 million in other noninterest income and smaller increases in most other categories of noninterest income. The increase in other noninterest income was primarily due to the $2.7 million gain from the payoff of a fixed rate commercial loan that had an associated interest rate swap derivative during the fourth quarter of 2023. This increase in noninterest income was partially offset by a $1.4 million decrease in mortgage loan servicing income due to lower mortgage servicing rights (“MSRs”) balances after the sale of MSRs during the second quarter of 2023.

Noninterest expense for the fourth quarter of 2023 was $152.3 million, an increase of $14.7 million, or 11% from the fourth quarter of 2022 primarily due to increases of $13.4 million in FDIC insurance expense and $8.6 million in other noninterest expense partially offset by a decrease of $5.6 million in the expense for the reserve for unfunded loan commitments. The increase in FDIC insurance expense was due to the $12.0 million special assessment recognized in the fourth quarter of 2023 and a higher overall assessment rate for the fourth quarter of 2023. Other noninterest expense for the fourth quarter of 2022 was reduced by a $3.9 million partial recovery of a prior period litigation accrual. The remainder of the increase in other noninterest expense was driven by an increase of $2.2 million of tax credit amortization, $1.3 million related to trade name intangible impairments and an increase of $1.0 million of expense related to community development lending programs. The decrease in the expense for the reserve for unfunded loan commitments was driven by a decrease in the outstanding balance of loan commitments.

For the fourth quarter of 2023, income tax expense was $24.8 million as compared to $26.6 million for the fourth quarter of 2022. The decrease of $1.8 million was due to lower earnings partially offset by a higher effective tax rate. United’s effective tax rate was 23.8% and 21.1% for the fourth quarter of 2023 and fourth quarter of 2022, respectively. The higher effective tax rate for the fourth quarter of 2023 was primarily driven by the impact of provision to return adjustments.

Year of 2023 compared to the Year of 2022

Earnings for the year of 2023 were $366.3 million, or $2.71 per diluted share, as compared to earnings of $379.6 million, or $2.80 per diluted share, for the year of 2022.

Net interest income for the year of 2023 increased $23.5 million, or 3%, from the year of 2022. Tax-equivalent net interest income, a non-GAAP measure which adjusts for the tax-favored status of income from certain loans and investments, for the year of 2023 increased $23.0 million, or 3%, from the year of 2022. The increase in net interest income and tax-equivalent net interest income was primarily due to the impact of rising market interest rates on earning assets, organic loan growth and a change in the asset mix to higher earning assets. These increases were partially offset by higher interest expense primarily driven by deposit rate repricing, lower income from Paycheck Protection Program (“PPP”) loan fees and lower acquired loan accretion income. The yield on average earning assets increased 150 basis points from the year of 2022 to 5.41% driven by increases in the yield on average net loans and loans held for sale of 131 basis points and in the yield on average investments securities of 110 basis points. Average earning assets for the year of 2023 increased $271.0 million, or 1%, from the year of 2022 due to a $1.5 billion increase in average net loans and loans held for sale partially offset by a $697.0 million decrease in average short-term investments and a $522.5 million decrease in average investment securities. The average cost of funds increased 205 basis points from the year of 2022 to 2.69% driven by an increase in the yield on average interest-bearing deposits of 196 basis points. Net PPP loan fee income decreased $9.2 million from the year of 2022. Acquired loan accretion income was $11.5 million and $18.3 million for the years of 2023 and 2022, respectively, a decrease of $6.8 million. The net interest margin of 3.56% for the year of 2023 was an increase of 6 basis points from the net interest margin of 3.50% for the year of 2022.

The provision for credit losses was $31.2 million for the year of 2023 as compared to $18.8 million for the year of 2022. The higher amount of provision expense for the year of 2023 as compared to the year of 2022 was mainly due to the impact of qualitative adjustments, reasonable and supportable forecasts of future macroeconomic conditions and loan growth.

Noninterest income for the year of 2023 was $135.3 million, which was a decrease of $18.0 million, or 12%, from the year of 2022. Income from mortgage banking activities decreased $16.1 million from the year of 2022 mainly due to lower mortgage loan origination and sale volume and a lower margin on loans sold. Additionally, net losses on investment securities were $7.6 million for the year of 2023 as compared to net gains on investment securities of $776 thousand for the year of 2022 mainly driven by a $7.2 million loss on the sale of available for sale (“AFS”) investment securities in the second quarter of 2023. The decrease in noninterest income was partially offset by a $4.5 million increase in mortgage loan servicing income mainly driven by an $8.1 million gain on sale of MSRs in the second quarter of 2023 partially offset by lower MSR balances after the sale. Other noninterest income increased $3.7 million to $11.1 million for the year of 2023 driven by the aforementioned $2.7 million gain from the payoff of a fixed rate commercial loan that had an associated interest rate swap derivative.

Noninterest expense for the year of 2023 was $560.2 million, an increase of $5.1 million, or 1%, from the year of 2022 driven by increases of $18.4 million in FDIC insurance expense and $14.5 million in other noninterest expense partially offset by decreases of $16.2 million in the expense for the reserve for unfunded loan commitments and $11.6 million in employee compensation. The increase in FDIC insurance expense was due to the $12.0 million special assessment recognized in the fourth quarter of 2023 and a higher overall assessment rate for 2023. The increase in other noninterest expense was driven by an increase of $2.6 million of expense related to community development lending programs, an increase of $1.7 million of tax credit investment amortization, $1.3 million related to trade name intangible impairments and by higher amounts of certain general operating expenses. The decrease in employee compensation was primarily due to lower employee commissions and incentives related to mortgage banking production.

For the year of 2023, income tax expense was $97.5 million as compared to $96.2 million for the year of 2022 primarily due to a higher effective tax rate partially offset by lower earnings. United’s effective tax rate was 21.0% and 20.2% for the years of 2023 and 2022, respectively.

Credit Quality

United’s asset quality continues to be sound. At December 31, 2023, non-performing loans were $45.5 million, or 0.21% of loans & leases, net of unearned income. Total non-performing assets were $48.1 million, including OREO of $2.6 million, or 0.16% of total assets at December 31, 2023. At December 31, 2022, non-performing loans were $58.6 million, or 0.29% of loans & leases, net of unearned income. Total non-performing assets were $60.7 million, including OREO of $2.1 million, or 0.21% of total assets at December 31, 2022.

On January 1, 2023, United adopted ASU 2022-02, “Troubled Debt Restructurings and Vintage Disclosures” which eliminated the accounting guidance on troubled debt restructurings and enhanced creditors’ disclosure requirements related to loan refinancings and restructurings for borrowers experiencing financial difficulty. After the adoption of ASU 2022-02, United no longer considers accruing restructured loans that are fewer than 90 days past due as non-performing loans or non-performing assets. December 31, 2022 non-performing loans and non-performing assets included $9.1 million of troubled debt restructurings that were on accruing status and fewer than 90 days past due but classified as non-performing loans and non-performing assets. Restructured loans that are on non-accrual or 90-day past due are included in the respective non-performing loan and non-performing asset categories for periods subsequent to adoption.

As of December 31, 2023, the allowance for loan & lease losses was $259.2 million, or 1.21% of loans & leases, net of unearned income, as compared to $234.7 million, or 1.14% of loans & leases, net of unearned income, at December 31, 2022. Net charge-offs were $2.5 million for the fourth quarter of 2023 compared to $1.2 million for the fourth quarter of 2022. Net charge-offs were $6.7 million for the year of 2023 compared to $101 thousand for the year of 2022. Annualized net charge-offs as a percentage of average loans & leases, net of unearned income were 0.05% and 0.02% for the fourth quarter of 2023 and 2022, respectively. Net charge-offs as a percentage of average loans & leases, net of unearned income were 0.03% and zero for the year of 2023 and 2022, respectively. Net charge-offs were $1.8 million for the third quarter of 2023.

Capital

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 15.4% at December 31, 2023, while estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 13.1%, 13.1% and 11.4%, respectively. The December 31, 2023 ratios reflect United’s election of a five-year transition provision, allowed by the Federal Reserve Board and other federal banking agencies in response to the COVID-19 pandemic, to delay for two years the full impact of CECL on regulatory capital, followed by a three-year transition period. The regulatory requirements for a well-capitalized financial institution are a risk-based capital ratio of 10.0%, a Common Equity Tier 1 capital ratio of 6.5%, a Tier 1 capital ratio of 8.0% and a leverage ratio of 5.0%.

During the year of 2022, United repurchased, under a previously announced stock repurchase plan, approximately 2.3 million shares of its common stock at an average price per share of $34.69. United did not repurchase any shares of its common stock during 2023.

About United Bankshares, Inc.

As of December 31, 2023, United had consolidated assets of approximately $29.9 billion. United is the parent company of United Bank which comprises nearly 250 offices in Virginia, Maryland, Washington, D.C., North Carolina, South Carolina, Georgia, Pennsylvania, West Virginia, and Ohio. United’s stock is traded on the NASDAQ Global Select Market under the quotation symbol "UBSI".

Cautionary Statements

The Company is required under generally accepted accounting principles to evaluate subsequent events through the filing of its December 31, 2023 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, 2023 and will adjust amounts preliminarily reported, if necessary.

Use of non-GAAP Financial Measures

This press release contains certain financial measures that are not recognized under U.S. generally accepted accounting principles ("GAAP"). Generally, United has presented these “non-GAAP” financial measures because it believes that these measures provide meaningful additional information to assist in the evaluation of United’s results of operations or financial position. Presentation of these non-GAAP financial measures is consistent with how United’s management evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the banking industry.

Specifically, this press release contains certain references to financial measures identified as tax-equivalent (FTE) net interest income, average tangible equity, return on average tangible equity and tangible book value per share. Management believes these non-GAAP financial measures to be helpful in understanding United’s results of operations or financial position.

Net interest income is presented in this press release on a tax-equivalent basis. The tax-equivalent basis adjusts for the tax-favored status of income from certain loans and investments. Although this is a non-GAAP measure, United’s management believes this measure is more widely used within the financial services industry and provides better comparability of net interest income arising from taxable and tax-exempt sources. United uses this measure to monitor net interest income performance and to manage its balance sheet composition. The tax-equivalent adjustment combines amounts of interest income on federally nontaxable loans and investment securities using the statutory federal income tax rate of 21%.

Tangible equity is calculated as GAAP total shareholders’ equity minus total intangible assets. Tangible equity can thus be considered the most conservative valuation of the company. Tangible equity is also presented on a per common share basis and considering net income, a return on average tangible equity. Management provides these amounts to facilitate the understanding of as well as to assess the quality and composition of United’s capital structure. By removing the effect of intangible assets that result from merger and acquisition activity, the “permanent” items of equity are presented. These measures, along with others, are used by management to analyze capital adequacy and performance.

Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as reconciliation to that comparable GAAP financial measure can be found in the attached financial information tables to this press release. Investors should recognize that United’s presentation of these non-GAAP financial measures might not be comparable to similarly titled measures at other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and United strongly encourages a review of its condensed consolidated financial statements in their entirety.

Forward-Looking Statements

In this report, we have made various statements regarding current expectations or forecasts of future events, which speak only as of the date the statements are made. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are also made from time-to-time in press releases and in oral statements made by the officers of the Company. Forward-looking statements can be identified by the use of the words “expect,” “may,” “could,” “intend,” “project,” “estimate,” “believe,” “anticipate,” and other words of similar meaning. Such forward-looking statements are based on assumptions and estimates, which although believed to be reasonable, may turn out to be incorrect. Therefore, undue reliance should not be placed upon these estimates and statements. United cannot assure that any of these statements, estimates, or beliefs will be realized and actual results may differ from those contemplated in these “forward-looking statements.” The following factors, among others, could cause the actual results of United’s operations to differ materially from its expectations: the uncertainty as to the extent of the duration, scope and impacts of the COVID-19 pandemic on United, its colleagues, the communities United serves, and the domestic and global economy; uncertainty in U.S. fiscal and monetary policies, including the interest rate policies of the Federal Reserve Board; volatility and disruptions in global capital and credit markets, interest rate, securities market and monetary supply fluctuations; increasing rates of inflation and slower growth rates; reform of LIBOR; the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations, including those involving the Federal Reserve, FDIC, and CFPB; the effect of changes in the level of checking or savings account deposits on United’s funding costs and net interest margin; future provisions for credit losses on loans and debt securities; changes in nonperforming assets; competition; 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, 2022, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov. Further, any forward-looking statement speaks only as of the date on which it is made, and United undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. You are advised to consult further disclosures United may make on related subjects in our filings with the SEC.

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 2023				December 2022				September 2023				December 2023				December 2022
Interest income				$	369,175			$	307,741			$	356,910			$	1,401,320			$	1,001,990
Interest expense					139,485				58,337				128,457				481,396				105,559
Net interest income					229,690				249,404				228,453				919,924				896,431
Provision for credit losses					6,875				16,368				5,948				31,153				18,822
Noninterest income					33,675				30,879				33,661				135,258				153,261
Noninterest expense					152,287				137,542				135,230				560,224				555,087
Income before income taxes					104,203				126,373				120,936				463,805				475,783
Income taxes					24,813				26,608				24,779				97,492				96,156
Net income				$	79,390			$	99,765			$	96,157			$	366,313			$	379,627
PER COMMON SHARE:
Net income:
Basic				$	0.59			$	0.74			$	0.71			$	2.72			$	2.81
Diluted					0.59				0.74				0.71				2.71				2.80
Cash dividends				$	0.37			$	0.36				0.36				1.45				1.44
Book value													34.45				35.36				33.52
Closing market price												$	27.59			$	37.55			$	40.49
Common shares outstanding:
Actual at period end, net of treasury shares													134,933,015				134,949,063				134,745,122
Weighted average-basic					134,691,360				134,267,532				134,685,041				134,505,058				134,776,241
Weighted average-diluted					134,984,970				134,799,436				134,887,776				134,753,820				135,117,512
FINANCIAL RATIOS:
Return on average assets					1.08	%			1.36	%			1.31	%			1.25	%			1.31	%
Return on average shareholders’ equity					6.70	%			8.80	%			8.14	%			7.87	%			8.25	%
Return on average tangible equity (non-GAAP)(1)					11.27	%			15.28	%			13.71	%			13.33	%			14.11	%
Average equity to average assets					16.11	%			15.45	%			16.12	%			15.89	%			15.83	%
Net interest margin					3.55	%			3.87	%			3.54	%			3.56	%			3.50	%
PERIOD END BALANCES:								December 31 2023				December 31 2022				September 30 2023				June 30 2023
Assets								$	29,926,482			$	29,489,380			$	29,224,794			$	29,694,651
Earning assets									26,623,652				26,135,400				25,883,462				26,335,600
Loans & leases, net of unearned income									21,359,084				20,558,166				21,097,883				20,764,291
Loans held for sale									56,261				56,879				59,614				91,296
Investment securities									4,125,754				4,872,604				4,066,299				4,342,714
Total deposits									22,819,319				22,303,166				22,676,854				22,369,753
Shareholders’ equity									4,771,240				4,516,193				4,648,878				4,637,043

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)
	Three Months Ended																				Year Ended
Consolidated Statements of Income	December				December				September				June				March				December				December
	2023				2022				2023				2023				2023				2023				2022
Interest & Loan Fees Income (GAAP)	$	369,175			$	307,741			$	356,910			$	345,932			$	329,303			$	1,401,320			$	1,001,990
Tax equivalent adjustment		866				1,149				869				1,144				1,135				4,014				4,467
Interest & Fees Income (FTE) (non-GAAP)		370,041				308,890				357,779				347,076				330,438				1,405,334				1,006,457
Interest Expense		139,485				58,337				128,457				118,471				94,983				481,396				105,559
Net Interest Income (FTE) (non-GAAP)		230,556				250,553				229,322				228,605				235,455				923,938				900,898
Provision for Credit Losses		6,875				16,368				5,948				11,440				6,890				31,153				18,822
Noninterest Income:
Fees from trust services		4,508				4,411				4,514				4,516				4,780				18,318				17,216
Fees from brokerage services		4,360				3,729				4,433				3,918				4,200				16,911				16,412
Fees from deposit services		9,107				9,510				9,282				9,325				9,362				37,076				40,557
Bankcard fees and merchant discounts		1,923				1,673				1,676				1,707				1,707				7,013				6,580
Other charges, commissions, and fees		924				805				850				949				1,138				3,861				3,267
Income from bank-owned life insurance		1,855				1,402				2,562				2,022				1,891				8,330				9,188
Income from mortgage banking activities		4,746				4,620				7,556				7,907				6,384				26,593				42,690
Mortgage loan servicing income		783				2,218				846				9,841				2,276				13,746				9,235
Net gains (losses) on investment securities		276				51				(181	)			(7,336	)			(405	)			(7,646	)			776
Other noninterest income		5,193				2,460				2,123				2,329				1,411				11,056				7,340
Total Noninterest Income		33,675				30,879				33,661				35,178				32,744				135,258				153,261
Noninterest Expense:
Employee compensation		57,829				57,537				59,064				58,502				55,414				230,809				242,408
Employee benefits		9,771				10,296				12,926				12,236				13,435				48,368				45,944
Net occupancy		11,690				11,455				11,494				11,409				11,833				46,426				45,129
Data processing		7,261				7,463				7,405				7,256				7,473				29,395				29,997
Amortization of intangibles		1,279				1,379				1,279				1,279				1,279				5,116				5,516
OREO expense		188				202				185				315				667				1,355				2,138
Net (gains) losses on the sale of OREO properties		(126	)			1,062				93				16				(43	)			(60	)			700
Equipment expense		7,539				6,868				7,170				8,026				6,996				29,731				29,320
FDIC insurance expense		16,621				3,248				4,598				4,570				4,587				30,376				11,988
Mortgage loan servicing expense and impairment		962				1,826				1,051				1,699				1,884				5,596				7,099
Expense for the reserve for unfunded loan commitments		940				6,492				(3,002	)			(2,021	)			2,600				(1,483	)			14,747
Other noninterest expense		38,333				29,714				32,967				32,001				31,294				134,595				120,101
Total Noninterest Expense		152,287				137,542				135,230				135,288				137,419				560,224				555,087
Income Before Income Taxes (FTE) (non-GAAP)		105,069				127,522				121,805				117,055				123,890				467,819				480,250
Tax equivalent adjustment		866				1,149				869				1,144				1,135				4,014				4,467
Income Before Income Taxes (GAAP)		104,203				126,373				120,936				115,911				122,755				463,805				475,783
Taxes		24,813				26,608				24,779				23,452				24,448				97,492				96,156
Net Income	$	79,390			$	99,765			$	96,157			$	92,459			$	98,307			$	366,313			$	379,627
MEMO: Effective Tax Rate		23.81	%			21.06	%			20.49	%			20.23	%			19.92	%			21.02	%			20.21	%

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 2023				December 2022				December 31				December 31				September 30
		Q-T-D Average				Q-T-D Average				2023				2022				2023
Cash & Cash Equivalents		$	1,073,118			$	1,053,162			$	1,598,943			$	1,176,652			$	1,184,054
Securities Available for Sale			3,710,447				4,590,452				3,786,377				4,541,925				3,749,357
Less: Allowance for credit losses			0				0				0				0				0
Net available for sale securities			3,710,447				4,590,452				3,786,377				4,541,925				3,749,357
Securities Held to Maturity			1,020				1,020				1,020				1,020				1,020
Less: Allowance for credit losses			(18	)			(19	)			(17	)			(18	)			(18	)
Net held to maturity securities			1,002				1,001				1,003				1,002				1,002
Equity Securities			8,598				7,305				8,945				7,629				8,548
Other Investment Securities			311,922				286,253				329,429				322,048				307,392
Total Securities			4,031,969				4,885,011				4,125,754				4,872,604				4,066,299
Total Cash and Securities			5,105,087				5,938,173				5,724,697				6,049,256				5,250,353
Loans held for sale			53,499				56,849				56,261				56,879				59,614
Commercial Loans & Leases			15,510,282				14,830,629				15,535,204				14,986,117				15,416,232
Mortgage Loans			4,576,046				4,045,587				4,728,374				4,158,226				4,519,845
Consumer Loans			1,156,339				1,430,837				1,109,607				1,435,820				1,178,898
Gross Loans			21,242,667				20,307,053				21,373,185				20,580,163				21,114,975
Unearned income			(16,722	)			(23,110	)			(14,101	)			(21,997	)			(17,092	)
Loans & Leases, net of unearned income			21,225,945				20,283,943				21,359,084				20,558,166				21,097,883
Allowance for Loan & Lease Losses			(255,032	)			(219,933	)			(259,237	)			(234,746	)			(254,886	)
Net Loans			20,970,913				20,064,010				21,099,847				20,323,420				20,842,997
Mortgage Servicing Rights			4,573				21,590				4,554				21,022				4,616
Goodwill			1,888,889				1,888,889				1,888,889				1,888,889				1,888,889
Other Intangibles			14,569				19,767				12,505				18,897				15,060
Operating Lease Right-of-Use Asset			80,622				72,666				86,986				71,144				80,259
Other Real Estate Owned			2,885				10,003				2,615				2,052				3,181
Bank-Owned Life Insurance			484,987				478,516				486,895				480,184				485,386
Other Assets			558,122				558,901				563,233				577,637				594,439
Total Assets		$	29,164,146			$	29,109,364			$	29,926,482			$	29,489,380			$	29,224,794
MEMO: Interest-earning Assets		$	25,875,812			$	25,742,282			$	26,623,652			$	26,135,400			$	25,883,462
Interest-bearing Deposits		$	16,414,152			$	15,166,408			$	16,670,239			$	15,103,488			$	16,423,511
Noninterest-bearing Deposits			6,175,309				7,507,329				6,149,080				7,199,678				6,253,343
Total Deposits			22,589,461				22,673,737				22,819,319				22,303,166				22,676,854
Short-term Borrowings			198,453				154,894				196,095				160,698				188,274
Long-term Borrowings			1,394,361				1,527,904				1,789,103				2,197,656				1,388,770
Total Borrowings			1,592,814				1,682,798				1,985,198				2,358,354				1,577,044
Operating Lease Liability			85,063				77,338				92,885				75,749				84,569
Other Liabilities			199,128				177,113				257,840				235,918				237,449
Total Liabilities			24,466,466				24,610,986				25,155,242				24,973,187				24,575,916
Preferred Equity			0				0				0				0				0
Common Equity			4,697,680				4,498,378				4,771,240				4,516,193				4,648,878
Total Shareholders' Equity			4,697,680				4,498,378				4,771,240				4,516,193				4,648,878
Total Liabilities & Equity		$	29,164,146			$	29,109,364			$	29,926,482			$	29,489,380			$	29,224,794
MEMO: Interest-bearing Liabilities		$	18,006,966			$	16,849,206			$	18,655,437			$	17,461,842			$	18,000,555

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				March				December				December
Quarterly/Year-to-Date Share Data:	2023				2022				2023				2023				2023				2023				2022
Earnings Per Share:
Basic	$	0.59			$	0.74			$	0.71			$	0.68			$	0.73			$	2.72			$	2.81
Diluted	$	0.59			$	0.74			$	0.71			$	0.68			$	0.73			$	2.71			$	2.80
Common Dividend Declared Per Share	$	0.37			$	0.36			$	0.36			$	0.36			$	0.36			$	1.45			$	1.44
High Common Stock Price	$	38.74			$	44.15			$	34.30			$	35.61			$	42.45			$	42.45			$	44.15
Low Common Stock Price	$	25.35			$	35.73			$	26.49			$	27.68			$	33.35			$	25.35			$	33.11
Average Shares Outstanding (Net of Treasury Stock):
Basic		134,691,360				134,267,532				134,685,041				134,683,010				134,411,166				134,505,058				134,776,241
Diluted		134,984,970				134,799,436				134,887,776				134,849,818				134,840,328				134,753,820				135,117,512
Common Dividends	$	50,066			$	48,603			$	48,706			$	48,628			$	48,720			$	196,120			$	194,977
Dividend Payout Ratio		63.06	%			48.72	%			50.65	%			52.59	%			49.56	%			53.54	%			51.36	%
													December 31				December 31				September 30				June 30
EOP Share Data:													2023				2022				2023				2023
Book Value Per Share													$	35.36			$	33.52			$	34.45			$	34.37
Tangible Book Value Per Share (non-GAAP) (1)													$	21.27			$	19.36			$	20.34			$	20.25
52-week High Common Stock Price													$	42.45			$	44.15			$	44.15			$	44.15
Date													2/3/2023				11/11/22				11/11/22				11/11/22
52-week Low Common Stock Price													$	25.35			$	33.11			$	26.49			$	27.68
Date													10/24/23				5/2/22				9/22/23				5/12/23
EOP Shares Outstanding (Net of Treasury Stock):														134,949,063				134,745,122				134,933,015				134,934,858
Memorandum Items:
EOP Employees (full-time equivalent)														2,736				2,856				2,803				2,799
Note:
(1) Tangible Book Value Per Share:
Total Shareholders' Equity (GAAP)													$	4,771,240			$	4,516,193			$	4,648,878			$	4,637,043
Less: Total Intangibles														(1,901,394	)			(1,907,786	)			(1,903,949	)			(1,905,228	)
Tangible Equity (non-GAAP)													$	2,869,846			$	2,608,407			$	2,744,929			$	2,731,815
÷ EOP Shares Outstanding (Net of Treasury Stock)														134,949,063				134,745,122				134,933,015				134,934,858
Tangible Book Value Per Share (non-GAAP)													$	21.27			$	19.36			$	20.34			$	20.25

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 2023										Three Months Ended December 2022										Three Months Ended September 2023
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									5.60	%									4.82	%									5.50	%
agreements to resell and other short-term investments		$	819,431			$	11,570					$	736,412			$	8,946					$	852,224			$	11,810
Investment securities:
Taxable			3,836,498				35,710		3.72	%			4,508,813				34,568		3.07	%			3,994,073				35,730		3.58	%
Tax-exempt			195,471				1,471		3.01	%			376,198				2,717		2.89	%			211,178				1,482		2.81	%
Total securities			4,031,969				37,181		3.69	%			4,885,011				37,285		3.05	%			4,205,251				37,212		3.54	%
Loans and loans held for sale, net of unearned income (2)			21,279,444				321,290		6.00	%			20,340,792				262,659		5.13	%			20,961,313				308,757		5.85	%
Allowance for loan losses			(255,032	)									(219,933	)									(250,810	)
Net loans and loans held for sale			21,024,412						6.07	%			20,120,859						5.18	%			20,710,503						5.92	%
Total earning assets			25,875,812			$	370,041		5.68	%			25,742,282			$	308,890		4.77	%			25,767,978			$	357,779		5.52	%
Other assets			3,288,334										3,367,082										3,307,943
TOTAL ASSETS		$	29,164,146									$	29,109,364									$	29,075,921
LIABILITIES:
Interest-Bearing Liabilities:
Interest-bearing deposits		$	16,414,152			$	122,132		2.95	%		$	15,166,408			$	44,265		1.16	%		$	15,993,991			$	108,793		2.70	%
Short-term borrowings			198,453				1,998		3.99	%			154,894				874		2.24	%			188,945				1,805		3.79	%
Long-term borrowings			1,394,361				15,355		4.37	%			1,527,904				13,198		3.43	%			1,590,763				17,859		4.45	%
Total interest-bearing liabilities			18,006,966				139,485		3.07	%			16,849,206				58,337		1.37	%			17,773,699				128,457		2.87	%
Noninterest-bearing deposits			6,175,309										7,507,329										6,337,052
Accrued expenses and other liabilities			284,191										254,451										278,046
TOTAL LIABILITIES			24,466,466										24,610,986										24,388,797
SHAREHOLDERS’ EQUITY			4,697,680										4,498,378										4,687,124
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	29,164,146									$	29,109,364									$	29,075,921
NET INTEREST INCOME						$	230,556									$	250,553									$	229,322
INTEREST RATE SPREAD									2.61	%									3.40	%									2.65	%
NET INTEREST MARGIN									3.55	%									3.87	%									3.54	%
(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 2023										Year Ended December 2022
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										5.23	%									1.44	%
agreements to resell and other short-term investments			$	900,077			$	47,069					$	1,597,108			$	22,950
Investment securities:
Taxable				4,125,467				144,420		3.50	%			4,532,713				105,780		2.33	%
Tax-exempt				294,802				8,411		2.85	%			410,037				10,983		2.68	%
Total securities				4,420,269				152,831		3.46	%			4,942,750				116,763		2.36	%
Loans and loans held for sale, net of unearned income (2)				20,909,248				1,205,434		5.77	%			19,389,485				866,744		4.47	%
Allowance for loan losses				(245,386	)									(216,104	)
Net loans and loans held for sale				20,663,862						5.83	%			19,173,381						4.52	%
Total earning assets				25,984,208			$	1,405,334		5.41	%			25,713,239			$	1,006,457		3.91	%
Other assets				3,311,450										3,360,609
TOTAL ASSETS			$	29,295,658									$	29,073,848
LIABILITIES:
Interest-Bearing Liabilities:
Interest-bearing deposits			$	15,782,761			$	391,094		2.48	%		$	15,466,386			$	80,237		0.52	%
Short-term borrowings				182,936				6,449		3.53	%			140,773				1,785		1.27	%
Long-term borrowings				1,923,924				83,853		4.36	%			1,014,655				23,537		2.32	%
Total interest-bearing liabilities				17,889,621				481,396		2.69	%			16,621,814				105,559		0.64	%
Noninterest-bearing deposits				6,475,051										7,580,624
Accrued expenses and other liabilities				276,883										269,970
TOTAL LIABILITIES				24,641,555										24,472,408
SHAREHOLDERS’ EQUITY				4,654,103										4,601,440
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			$	29,295,658									$	29,073,848
NET INTEREST INCOME							$	923,938									$	900,898
INTEREST RATE SPREAD										2.72	%									3.27	%
NET INTEREST MARGIN										3.56	%									3.50	%
(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					March					December					December
Selected Financial Ratios:	2023					2022					2023					2023					2023					2023					2022
Return on Average Assets		1.08	%				1.36	%				1.31	%				1.26	%				1.35		%			1.25		%			1.31	%
Return on Average Shareholders’ Equity		6.70	%				8.80	%				8.14	%				7.96	%				8.72		%			7.87		%			8.25	%
Return on Average Tangible Equity (non-GAAP) (1)		11.27	%				15.28	%				13.71	%				13.47	%				14.97		%			13.33		%			14.11	%
Efficiency Ratio		57.82	%				49.07	%				51.59	%				51.51	%				51.46		%			53.09		%			52.88	%
Price / Earnings Ratio		16.00			x		13.71			x		9.70			x		10.84			x		12.10			x		13.85			x		14.46			x
Note:
(1) Return on Average Tangible Equity:
(a) Net Income (GAAP)	$	79,390				$	99,765				$	96,157				$	92,459				$	98,307				$	366,313				$	379,627
(b) Number of Days		92					92					92					91					90					365					365
Average Total Shareholders' Equity (GAAP)	$	4,697,680				$	4,498,378				$	4,687,124				$	4,659,094				$	4,570,288				$	4,654,103				$	4,601,440
Less: Average Total Intangibles		(1,903,458	)				(1,908,656	)				(1,904,769	)				(1,906,053	)				(1,907,331		)			(1,905,390		)			(1,910,377	)
(c) Average Tangible Equity (non-GAAP)	$	2,794,222				$	2,589,722				$	2,782,355				$	2,753,041				$	2,662,957				$	2,748,713				$	2,691,063
Return on Average Tangible Equity (non-GAAP)\ [(a) / (b)] x 365 / (c)		11.27	%				15.28	%				13.71	%				13.47	%				14.97		%			13.33		%			14.11	%
Selected Financial Ratios:																December 31 2023					December 31 2022					September 30 2023					June 30 2023
Loans & Leases, net of unearned income / Deposit Ratio																	93.60	%				92.18		%			93.04		%			92.82	%
Allowance for Loan & Lease Losses/ Loans & Leases, net of unearned income																	1.21	%				1.14		%			1.21		%			1.21	%
Allowance for Credit Losses (2)/ Loans & Leases, net of unearned income																	1.42	%				1.37		%			1.42		%			1.43	%
Nonaccrual Loans / Loans & Leases, net of unearned income																	0.14	%				0.12		%			0.12		%			0.13	%
90-Day Past Due Loans/ Loans & Leases, net of unearned income																	0.07	%				0.08		%			0.09		%			0.07	%
Non-performing Loans/ Loans & Leases, net of unearned income																	0.21	%				0.29		%			0.20		%			0.20	%
Non-performing Assets/ Total Assets																	0.16	%				0.21		%			0.16		%			0.15	%
Primary Capital Ratio																	16.79	%				16.11		%			16.76		%			16.45	%
Shareholders' Equity Ratio																	15.94	%				15.31		%			15.91		%			15.62	%
Price / Book Ratio																	1.06			x		1.21			x		0.80			x		0.86			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				December				September				June				March				December				December
Mortgage Banking Segment Data:	2023				2022				2023				2023				2023				2023				2022
Applications	$	564,766			$	447,951			$	458,818			$	588,734			$	505,840			$	2,118,158			$	4,089,086
Loans originated		431,351				399,706				342,131				416,255				312,077				1,501,814				2,913,708
Loans sold	$	370,213			$	396,735			$	367,679			$	399,632			$	301,476			$	1,439,000			$	3,203,749
Purchase money % of loans closed		87	%			85	%			94	%			94	%			92	%			92	%			81	%
Realized gain on sales and fees as a % of loans sold		2.11	%			1.82	%			2.29	%			2.27	%			2.17	%			2.22	%			2.40	%
Net interest income	$	2,635			$	2,654			$	2,558			$	2,155			$	2,122			$	9,470			$	10,599
Other income		7,680				10,693				10,871				19,946				10,861				49,358				69,307
Other expense		14,287				17,097				14,119				15,706				15,085				59,197				88,983
Income taxes		(1,268	)			(810	)			(141	)			1,270				(424	)			(563	)			(1,858	)
Net (loss) income	$	(2,704	)		$	(2,940	)		$	(549	)		$	5,125			$	(1,678	)		$	194			$	(7,219	)
									December 31				December 31				September 30				June 30				March 31
Period End Mortgage Banking Segment Data:									2023				2022				2023				2023				2023
Locked pipeline									$	93,368			$	68,654			$	99,988			$	93,417			$	92,639
Balance of loans serviced									$	1,202,448			$	3,381,485			$	1,216,805			$	1,242,441			$	3,280,741
Number of loans serviced										12,419				23,510				12,596				12,843				22,436

UNITED BANKSHARES, INC. AND SUBSIDIARIES Washington, D.C. and Charleston, WV Stock Symbol: UBSI (In Thousands Except for Per Share Data)
									December 31				December 31				September 30				June 30				March 31
Asset Quality Data:									2023				2022				2023				2023				2023
EOP Non-Accrual Loans									$	30,919			$	23,685			$	24,456			$	26,545			$	29,296
EOP 90-Day Past Due Loans										14,579				15,565				18,283				15,007				13,105
EOP Restructured Loans (1)										n/a				19,388				n/a				n/a				n/a
Total EOP Non-performing Loans									$	45,498			$	58,638			$	42,739			$	41,552			$	42,401
EOP Other Real Estate Owned										2,615				2,052				3,181				3,756				4,086
Total EOP Non-performing Assets									$	48,113			$	60,690			$	45,920			$	45,308			$	46,487
	Three Months Ended																				Year Ended
	December 31				December 31				September 30				June 30				March 31				December 31				December 31
Allowance for Loan & Lease Losses:	2023				2022				2023				2023				2023				2023				2022
Beginning Balance	$	254,886			$	219,611			$	250,721			$	240,491			$	234,746			$	234,746			$	216,016
Gross Charge-offs		(3,258	)			(2,968	)			(2,836	)			(2,274	)			(2,936	)			(11,304	)			(9,650	)
Recoveries		733				1,734				1,052				1,065				1,791				4,641				9,549
Net (Charge-offs) Recoveries		(2,525	)			(1,234	)			(1,784	)			(1,209	)			(1,145	)			(6,663	)			(101	)
Provision for Loan & Lease Losses		6,876				16,369				5,949				11,439				6,890				31,154				18,831
Ending Balance	$	259,237			$	234,746			$	254,886			$	250,721			$	240,491			$	259,237			$	234,746
Reserve for lending-related commitments		44,706				46,189				43,766				46,768				48,789				44,706				46,189
Allowance for Credit Losses (2)	$	303,943			$	280,935			$	298,652			$	297,489			$	289,280			$	303,943			$	280,935

Notes:
(1)	On January 1, 2023, United adopted ASU 2022-02, “Troubled Debt Restructurings and Vintage Disclosures” which eliminated the accounting guidance on troubled debt restructurings and enhanced creditors’ disclosure requirements related to loan refinancings and restructurings for borrowers experiencing financial difficulty. After the adoption of ASU 2022-02, United no longer considers accruing restructured loans that are fewer than 90 days past due as non-performing loans or non-performing assets. December 31, 2022 non-performing loans and non-performing assets included $9,127 of troubled debt restructurings that were on accruing status and fewer than 90 days past due but classified as non-performing loans and non-performing assets. Restructured loans that are on non-accrual or 90-day past due are included in the respective non-performing loan and non-performing asset categories for periods subsequent to adoption.
	Restructured loans with an aggregate balance of $7,186 at December 31, 2022 were on nonaccrual status, but are not included in “EOP Non-Accrual Loans” above. Restructured loans with an aggregate balance of $3,075 at December 31, 2022 were 90 days past due, but not included in "EOP 90-Day Past Due Loans" above.
(2)	Includes allowances for loan losses and lending-related commitments.

 

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The United Bankshares (W Va) Stock at the time of publication of the news with a raise of 0,00 % to 34,20USD on Tradegate stock exchange (25. Januar 2024, 22:26 Uhr).