United Bankshares, Inc. Announces Record Earnings for the Year 2020

United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today reported earnings for the fourth quarter and the year of 2020. Earnings for the fourth quarter of 2020 were $92.4 million, or $0.71 per diluted share, as compared to earnings of $63.3 million, or $0.62 per diluted share for the fourth quarter of 2019. Earnings for the year of 2020 were a record $289.0 million as compared to earnings of $260.1 million for the year of 2019. Earnings per diluted share for the year of 2020 were $2.40 as compared to earnings per diluted share of $2.55 for the year of 2019.

Fourth quarter 2020 results produced annualized returns on average assets, average equity and average tangible equity of 1.41%, 8.51% and 14.72%, respectively compared to annualized returns on average assets, average equity and average tangible equity of 1.29%, 7.42% and 13.38%, respectively, for the fourth quarter of 2019. For the year of 2020, United’s returns on average assets, average equity and average tangible equity were 1.20%, 7.30% and 12.90%, respectively compared to returns on average assets, average equity and average tangible equity of 1.34%, 7.80% and 14.26%, respectively, for the year of 2019.

The record net income for the year of 2020, as compared to the year of 2019, was primarily due to higher income from mortgage banking activities, driven by an elevated volume of mortgage loan originations and sales in the secondary market, as well as the impact of the Carolina Financial Corporation (“Carolina Financial”) acquisition. Partially offsetting these increases in net income was higher provision for credit losses resulting from an adverse future macroeconomic forecast as a result of the coronavirus (“COVID-19”) pandemic under the Current Expected Credit Loss (“CECL”) accounting standard and merger-related expenses related to the Carolina Financial acquisition.

“During the many challenges of 2020, United delivered a strong performance for our shareholders, our team members, our customers and our communities,” stated Richard M. Adams, United’s Chairman of the Board and Chief Executive Officer. “For 2020, we earned a record $289 million, increased our dividend for the 47^th consecutive year, successfully completed the largest acquisition in our company’s history with Carolina Financial, and maintained our focus on meeting the needs of our customers, our employees and our communities during the COVID-19 pandemic. We enter 2021 with strong credit quality and regulatory ratios that position us well for continued success.”

The results of operations for Carolina Financial are included in the consolidated results of operations from the date of acquisition, May 1, 2020. As a result of the acquisition, the fourth quarter and year of 2020 reflected higher average balances, income, and expense as compared to the fourth quarter and year of 2020. In addition, the fourth quarter and year of 2020 included merger-related expenses of $558 thousand and $54.2 million, respectively, as compared to $589 thousand for both the fourth quarter and year of 2019.

Net Interest Income and Net Interest Margin

Net interest income for the fourth quarter of 2020 was $192.0 million, which was an increase of $50.7 million or 36% from the fourth quarter of 2019, primarily due to an increase in average earning assets from the Carolina Financial acquisition and Paycheck Protection Program (“PPP”) loans. 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 2020 increased $50.9 million or 36% from the fourth quarter of 2019 to $193.0 million. Average earning assets for the fourth quarter of 2020 increased $6.0 billion or 35% from the fourth quarter of 2019 due to a $4.4 billion increase in average net loans and loans held for sale, a $1.2 billion increase in average short-term investments and a $395.1 million increase in average investment securities. The net interest spread for the fourth quarter of 2020 increased 36 basis points from the fourth quarter of 2019 due to a 102 basis point decrease in the average cost of funds primarily due to the decline in market interest rates from the fourth quarter of 2019. The increase in the net interest spread was partially offset by a 66 basis point decrease in the average yield on earning assets from the fourth quarter of 2019 due to the decline in market interest rates and the lower yield on PPP loans. Loan accretion on acquired loans was $10.9 million and $8.6 million for the fourth quarter of 2020 and 2019, respectively, an increase of $2.3 million, primarily driven by the accretion on loans acquired from the Carolina Financial acquisition. The net interest margin of 3.33% for the fourth quarter of 2020 was an increase of 4 basis points from the net interest margin of 3.29% for the fourth quarter of 2019.

Net interest income for the year of 2020 was $689.8 million, which was an increase of $111.9 million or 19% from the year of 2019, primarily due to an increase in average earning assets from the Carolina Financial acquisition. Tax-equivalent net interest income for the year of 2020 was $693.7 million, an increase of $112.0 million or 19% from the year of 2019. Average earning assets for the year of 2020 increased $4.2 billion or 25% from the year of 2019 due to a $3.2 billion increase in average net loans and loans held for sale, a $767.9 million increase in average short-term investments and a $293.2 million increase in average investment securities. The net interest spread for the year of 2020 increased 8 basis points from the year of 2019 due to an 80 basis point decrease in the average cost of funds partially offset by a 72 basis point decrease in the average yield on earning assets. Loan accretion on acquired loans was $41.8 million and $38.8 million for the year of 2020 and 2019, respectively, an increase of $3.0 million. The net interest margin of 3.24% for the year of 2020 was a decrease of 15 basis points from the net interest margin of 3.39% for the year of 2019.

On a linked-quarter basis, net interest income for the fourth quarter of 2020 increased $6.3 million or 3% from the third quarter of 2020. United’s tax-equivalent net interest income for the fourth quarter of 2020 also increased $6.3 million or 3% from the third quarter of 2020. The net interest spread for the fourth quarter of 2020 increased 21 basis points from the third quarter of 2020 due to an 18 basis point decrease in the average cost of funds and a 3 basis point increase in the average yield on earning assets. PPP loan fee income increased $2.2 million to $7.0 million in the fourth quarter of 2020 from the third quarter of 2020, driven by loan forgiveness. Average earning assets decreased approximately $302.1 million or 1% from the third quarter of 2020, driven by a decrease in average net loans and loans held for sale of $165.3 million and average short-term investments of $199.8 million from the third quarter of 2020. Loan accretion on acquired loans decreased approximately $815 thousand from the third quarter of 2020. The net interest margin of 3.33% for the fourth quarter of 2020 was an increase of 15 basis points from the net interest margin of 3.18% for the third quarter of 2020.

Credit Quality

United’s asset quality continues to be sound relative to the current economic environment. At December 31, 2020, nonperforming loans were $132.2 million, or 0.75% of loans & leases, net of unearned income, as compared to nonperforming loans of $131.1 million, or 0.96% of loans & leases, net of unearned income, at December 31, 2019. As of December 31, 2020, the allowance for loan losses was $235.8 million or 1.34% of loans & leases, net of unearned income, as compared to $77.1 million or 0.56% of loans & leases, net of unearned income, at December 31, 2019. The increase in the allowance for loan losses was due to the adoption of CECL, the impact of COVID-19 and the loans acquired from Carolina Financial. Total nonperforming assets of $154.8 million, including OREO of $22.6 million at December 31, 2020, represented 0.59% of total assets as compared to nonperforming assets of $146.6 million or 0.75% of total assets at December 31, 2019.

For the quarters ended December 31, 2020 and 2019, the provision for credit losses was $16.8 million and $5.9 million, respectively. The increase in the provision in relation to the prior year quarter was driven by the impact from the reasonable and supportable forecasts of future macroeconomic conditions used in the estimation of expected credit losses adversely impacted by the COVID-19 pandemic under CECL. The provision for the year of 2020 was $106.6 million as compared to $21.3 million for the year of 2019. In addition to the impact of reasonable and supportable forecasts on reserves, the increase year over year was also driven by the provision for credit losses of $29.0 million recorded on purchased non-credit deteriorated (“non-PCD”) loans from the Carolina Financial acquisition. Net charge-offs were $6.9 million and $5.9 million for the fourth quarter of 2020 and 2019, respectively. Net charge-offs were $23.6 million and $21.0 million for the year of 2020 and 2019, respectively. Annualized net charge-offs as a percentage of average loans & leases, net of unearned income were 0.16% and 0.14% for the fourth quarter and year of 2020, respectively. On a linked-quarter basis, the provision for credit losses remained flat at $16.8 million.

Noninterest Income

Noninterest income for the fourth quarter of 2020 was $94.1 million, which was an increase of $56.8 million or 153% from the fourth quarter of 2019. The increase was driven by a $53.2 million increase in income from mortgage banking activities due to an elevated volume of mortgage loan originations and sales in the secondary market as well as the addition of mortgage banking operations from the Carolina Financial acquisition. Noninterest income for the fourth quarter of 2020 also included $2.3 million in mortgage loan servicing income.

Noninterest income for the year of 2020 was $354.7 million, which was an increase of $204.3 million or 136% from the year of 2019. The increase was due mainly to an increase of $189.1 million in income from mortgage banking activities. Net gains on investment securities were $3.2 million for the year of 2020 as compared to a net gain of $175 thousand for the year of 2019, an increase of approximately $3.0 million. Noninterest income for the year of 2020 also included $6.2 million in mortgage loan servicing income and a $2.2 million gain on the sale of a bank premises.

On a linked-quarter basis, noninterest income for the fourth quarter of 2020 decreased $41.4 million or 31% from the third quarter of 2020 primarily due to a decrease of $38.7 million in income from mortgage banking activities. Mortgage loan originations and sales volumes remained strong in the fourth quarter of 2020. The decrease in the fourth quarter of 2020 in relation to the third quarter of 2020 was primarily due to lower balances and volume of loans held for sale and loan commitments. The third quarter of 2020 also included a $2.2 million gain on the sale of a bank premises.

Noninterest Expense

Noninterest expense for the fourth quarter of 2020 was $156.1 million, an increase of $59.2 million or 61% from the fourth quarter of 2019. Employee compensation increased $32.6 million from the fourth quarter of 2019 due to the Carolina Financial acquisition as well as due to higher employee incentives and commissions expense mainly related to higher mortgage banking production. Additionally, noninterest expense increased from the fourth quarter of 2019 due to a $10.8 million increase in other expense, a $3.4 million increase in mortgage loan servicing expense and impairment, a $3.0 million increase in employee benefits, a $2.9 million increase in equipment expense and a $2.2 million increase in net occupancy expense. Within other expense, the largest drivers of the increase included an increase in the expense for the reserve for unfunded commitments of $3.3 million and an increase in the amortization of income tax credits of $1.9 million. The increases in employee benefits, equipment expense and occupancy expense were mainly from the Carolina Financial acquisition.

Noninterest expense for the year of 2020 was $578.2 million, an increase of $195.6 million or 51% from the year of 2019. Employee compensation increased $100.7 million from the year of 2019 due to the Carolina Financial acquisition as well as due to higher employee incentives and commissions expense mainly related to higher mortgage banking production. Additional employee benefit expense of $13.1 million and occupancy expense of $6.5 million were recognized in the year of 2020 mainly from the Carolina Financial acquisition. Data processing expense increased $13.2 million (including the Carolina Financial data processing contract termination penalty of $9.7 million recorded in the second quarter of 2020), mortgage loan servicing expense and impairment increased $9.0 million (including $1.4 million temporary impairment on mortgage servicing rights) and prepayment penalties on the early payoff of long-term FHLB advances increased $5.3 million. Other expense also increased $39.1 million due to an increase in merger-related expenses of $10.7 million associated with the Carolina Financial acquisition, an increase in the expense for the reserve for unfunded commitments of $11.0 million, and an increase in the amortization of income tax credits of $5.7 million which reduces the effective tax rate.

On a linked-quarter basis, noninterest expense for the fourth quarter of 2020 decreased $15.5 million or 9% from the third quarter of 2020 due primarily to the $10.4 million in prepayment penalties on the early payoff of three long-term FHLB advances recognized in the third quarter of 2020. Additionally, employee compensation decreased $7.5 million due a decline in salaries expense as a result of fewer employees and lower employee incentives and commissions expense recognized in the fourth quarter of 2020 related primarily to mortgage banking production.

Income Tax Expense

For the fourth quarter and year of 2020, income tax expense was $20.8 million and $70.7 million as compared to $12.5 million and $64.3 million, respectively, for the fourth quarter and year of 2019. The increase in the comparative quarter and year periods was due to overall higher earnings. On a linked-quarter basis, income tax expense decreased $8.1 million due to lower earnings and a lower effective tax rate primarily as a result of an increased benefit from income tax credits. United’s effective tax rate was 18.4% for the fourth quarter of 2020, 16.5% for the fourth quarter of 2019 and 21.8% for the third quarter of 2020. For the year of 2020 and 2019, United's effective tax rate was 19.7% and 19.8%, respectively.

Regulatory Capital

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 15.6% at December 31, 2020 while its estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 13.3%, 13.3% and 10.3%, respectively. The December 31, 2020 ratios reflect United’s election of a five-year transition provision, allowed by the Federal Reserve Board and other federal banking agencies in response to the COVID-19 pandemic, to delay for two years the full impact of CECL on regulatory capital, followed by a three-year transition period. The regulatory requirements for a well-capitalized financial institution are a risk-based capital ratio of 10.0%, a Common Equity Tier 1 capital ratio of 6.5%, a Tier 1 capital ratio of 8.0% and a leverage ratio of 5.0%.

About United Bankshares, Inc.

As of December 31, 2020, United had consolidated assets of approximately $26.2 billion. United is the parent company of United Bank, the largest community bank headquartered in the D.C. Metro region. United Bank has 230 offices in West Virginia, Virginia, Ohio, Pennsylvania, Maryland, North Carolina, South Carolina, Georgia, and the nation’s capital. 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, 2020 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, 2020 and will adjust amounts preliminarily reported, if necessary.

Use of non-GAAP Financial Measures

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

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

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

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

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

Forward-Looking Statements

In this report, we have made various statements regarding current expectations or forecasts of future events, which speak only as of the date the statements are made. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are also made from time-to-time in press releases and in oral statements made by the officers of the Company. Forward-looking statements can be identified by the use of the words “expect,” “may,” “could,” “intend,” “project,” “estimate,” “believe,” “anticipate,” and other words of similar meaning. Such forward-looking statements are based on assumptions and estimates, which although believed to be reasonable, may turn out to be incorrect, such as statements about the potential impacts of the COVID-19 pandemic. 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 effect of the COVID-19 pandemic, including the negative impacts and disruptions on United’s colleagues, the communities United serves, and the domestic and global economy, which may have an adverse effect on United’s business; current and future economic and market conditions, including the effects of declines in housing prices, high unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth; fiscal and monetary policies of the Federal Reserve Board; 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; the successful integration of operations of Carolina Financial Corporation; competition; and changes in legislation or regulatory requirements. For more information about factors that could cause actual results to differ materially from United’s expectations, refer to its reports filed with the Securities and Exchange Commission, including the discussion under “Risk Factors” in the Annual Report on Form 10-K for the year ended December 31, 2019, 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 FINANCIAL SUMMARY (In Thousands Except for Per Share Data)
	Three Months Ended							Year Ended
	December 2020			December 2019				December 2020			December 2019
EARNINGS SUMMARY:
Interest income	$	208,914		$	183,869			$	798,382		$	762,562
Interest expense		16,925			42,586				108,609			184,640
Net interest income		191,989			141,283				689,773			577,922
Provision for credit losses		16,751			5,867				106,562			21,313
Noninterest income		94,082			37,242				354,746			150,484
Noninterest expense		156,117			96,900				578,217			382,654
Income before income taxes		113,203			75,758				359,740			324,439
Income taxes		20,833			12,473				70,717			64,340
Net income	$	92,370		$	63,285			$	289,023		$	260,099
PER COMMON SHARE:
Net income:
Basic	$	0.71		$	0.62			$	2.40		$	2.55
Diluted		0.71			0.62				2.40			2.55
Cash dividends	$	0.35		$	0.35				1.40			1.37
Book value									33.27			33.12
Closing market price								$	32.40		$	38.66
Common shares outstanding:
Actual at period end, net of treasury shares									129,188,507			101,553,671
Weighted average-basic		129,371,600			101,250,489				120,017,247			101,585,599
Weighted average-diluted		129,479,390			101,537,640				120,090,232			101,852,577
FINANCIAL RATIOS:
Return on average assets		1.41	%		1.29	%			1.20	%		1.34	%
Return on average shareholders’ equity		8.51	%		7.42	%			7.30	%		7.80	%
Return on average tangible equity (non-GAAP) (1)		14.72	%		13.38	%			12.90	%		14.26	%
Average equity to average assets		16.54	%		17.39	%			16.39	%		17.13	%
Net interest margin		3.33	%		3.29	%			3.24	%		3.39	%
	December 31 2020			December 31 2019				December 31 2018			September 30 2020
PERIOD END BALANCES:
Assets	$	26,184,247		$	19,662,324			$	19,250,498		$	25,931,308
Earning assets		23,172,403			17,344,638				16,971,602			22,903,067
Loans & leases, net of unearned income		17,591,413			13,712,129				13,422,222			17,930,231
Loans held for sale		718,937			387,514				249,846			812,084
Investment securities		3,186,184			2,669,797				2,543,727			3,007,263
Total deposits		20,585,160			13,852,421				13,994,749			20,251,539
Shareholders’ equity		4,297,620			3,363,833				3,251,624			4,267,441
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
	December				December				September				June					March
	2020				2019				2020				2020					2020
Interest & Loan Fees Income (GAAP)	$	208,914			$	183,869			$	210,269			$		198,717			$		180,482
Tax equivalent adjustment		1,042				851				1,046					1,018					782
Interest & Fees Income (FTE) (non-GAAP)		209,956				184,720				211,315					199,735					181,264
Interest Expense		16,925				42,586				24,605					28,115					38,964
Net Interest Income (FTE) (non-GAAP)		193,031				142,134				186,710					171,620					142,300
Provision for Credit Losses		16,751				5,867				16,781					45,911					27,119
Noninterest Income:
Fees from trust services		3,585				3,597				3,574					3,261					3,483
Fees from brokerage services		3,125				2,468				3,066					2,651					2,916
Fees from deposit services		9,501				8,549				9,320					8,055					7,957
Bankcard fees and merchant discounts		1,129				1,154				1,226					718					993
Other charges, commissions, and fees		753				576				715					610					518
Income from bank-owned life insurance		1,479				2,906				2,059					1,291					2,388
Income from mortgage banking activities		70,793				17,547				109,457					68,213					17,631
Mortgage loan servicing income		2,334				0				2,345					1,534					0
Net gain on the sale of bank premises		0				0				2,229					0					0
Net gains on investment securities		589				109				860					1,510					196
Other noninterest income		794				336				617					547					724
Total Noninterest Income		94,082				37,242				135,468					88,390					36,806
Noninterest Expense:
Employee compensation		77,001				44,399				84,455					68,664					44,541
Employee benefits		12,103				9,121				13,202					12,779					10,786
Net occupancy		10,979				8,734				10,944					10,318					9,062
Data processing		7,280				5,727				6,708					15,926					5,506
Amortization of intangibles		1,691				1,754				1,691					1,646					1,577
OREO expense		3,069				1,450				1,166					607					906
Equipment expense		6,396				3,522				5,616					5,004					3,845
FDIC insurance expense		2,250				1,005				2,700					2,782					2,400
Mortgage loan servicing expense and impairment		3,482				119				3,301					2,510					138
Prepayment penalties on FHLB borrowings		0				0				10,385					0					0
Other expenses		31,866				21,069				31,425					29,138					22,372
Total Noninterest Expense		156,117				96,900				171,593					149,374					101,133
Income Before Income Taxes (FTE) (non-GAAP)		114,245				76,609				133,804					64,725					50,854
Tax equivalent adjustment		1,042				851				1,046					1,018					782
Income Before Income Taxes (GAAP)		113,203				75,758				132,758					63,707					50,072
Taxes		20,833				12,473				28,974					11,021					9,889
Net Income	$	92,370			$	63,285			$	103,784			$		52,686			$		40,183
MEMO: Effective Tax Rate		18.40	%			16.46	%			21.82	%				17.30	%				19.75	%

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
	Year Ended
	December				December				December				December
	2020				2019				2018				2017
Interest & Loan Fees Income (GAAP)	$	798,382			$	762,562			$	717,715			$	623,806
Tax equivalent adjustment		3,888				3,735				4,328				8,429
Interest & Fees Income (FTE) (non-GAAP)		802,270				766,297				722,043				632,235
Interest Expense		108,609				184,640				129,070				74,809
Net Interest Income (FTE) (non-GAAP)		693,661				581,657				592,973				557,426
Provision for Credit Losses		106,562				21,313				22,013				28,406
Noninterest Income:
Fees from trust services		13,903				13,873				12,930				11,801
Fees from brokerage services		11,758				10,136				9,347				7,730
Fees from deposit services		34,833				33,768				33,973				33,622
Bankcard fees and merchant discounts		4,066				4,674				5,168				4,795
Other charges, commissions, and fees		2,596				2,241				2,228				2,057
Income from bank-owned life insurance		7,217				7,339				5,045				5,110
Income from mortgage banking activities		266,094				76,951				58,109				58,907
Mortgage loan servicing income		6,213				0				0				0
Net gain on the sale of bank premises		2,229				0				2,763				0
Net gains (losses) on investment securities		3,155				175				(2,618	)			5,584
Other noninterest income		2,682				1,327				1,767				2,039
Total Noninterest Income		354,746				150,484				128,712				131,645
Noninterest Expense:
Employee compensation		274,661				173,962				164,468				166,393
Employee benefits		48,870				35,745				36,172				34,997
Net occupancy		41,303				34,850				36,462				39,067
Data processing		35,420				22,232				23,800				21,019
Amortization of intangibles		6,605				7,016				8,039				7,772
OREO expense		5,748				5,336				3,444				6,003
Equipment expense		20,861				14,210				13,846				10,528
FDIC insurance expense		10,132				8,070				11,464				7,051
Mortgage loan servicing expense and impairment		9,431				423				271				263
Prepayment penalties on FHLB borrowings		10,385				5,105				0				0
Other expenses		114,801				75,705				70,213				74,316
Total Noninterest Expense		578,217				382,654				368,179				367,409
Income Before Income Taxes (FTE) (non-GAAP)		363,628				328,174				331,493				293,256
Tax equivalent adjustment		3,888				3,735				4,328				8,429
Income Before Income Taxes (GAAP)		359,740				324,439				327,165				284,827
Taxes		70,717				64,340				70,823				134,246
Net Income	$	289,023			$	260,099			$	256,342			$	150,581
MEMO: Effective Tax Rate		19.66	%			19.83	%			21.65	%			47.13	%

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 2020				December 2019				December 31				December 31				December 31
	Q-T-D Average				Q-T-D Average				2020				2019				2018
Cash & Cash Equivalents	$	2,048,915			$	777,007			$	2,209,068			$	837,493			$	1,020,396
Securities Available for Sale		2,849,102				2,463,101				2,953,359				2,437,296				2,337,039
Less: Allowance for credit losses		0				0				0				0				0
Net available for sale securities		2,849,102				2,463,101				2,953,359				2,437,296				2,337,039
Securities Held to Maturity		1,235				1,463				1,235				1,446				19,999
Less: Allowance for credit losses		(21	)			0				(23	)			0				0
Net held to maturity securities		1,214				1,463				1,212				1,446				19,999
Equity Securities		10,399				8,984				10,718				8,894				9,734
Other Investment Securities		218,741				210,855				220,895				222,161				176,955
Total Securities		3,079,456				2,684,403				3,186,184				2,669,797				2,543,727
Total Cash and Securities		5,128,371				3,461,410				5,395,252				3,507,290				3,564,123
Loans held for sale		720,896				368,966				718,937				387,514				249,846
Commercial Loans & Leases		13,296,380				9,347,641				13,165,497				9,399,170				9,447,420
Mortgage Loans		3,269,073				3,052,045				3,197,274				3,107,721				2,979,787
Consumer Loans		1,253,421				1,195,999				1,259,812				1,206,657				1,002,325
Gross Loans		17,818,874				13,595,685				17,622,583				13,713,548				13,429,532
Unearned income		(38,502	)			(2,823	)			(31,170	)			(1,419	)			(7,310	)
Loans & Leases, net of unearned income		17,780,372				13,592,862				17,591,413				13,712,129				13,422,222
Allowance for Loan & Leases Losses		(225,918	)			(77,073	)			(235,830	)			(77,057	)			(76,703	)
Net Loans		17,554,454				13,515,789				17,355,583				13,635,072				13,345,519
Mortgage Servicing Rights		20,766				0				20,955				0				0
Goodwill		1,794,997				1,478,014				1,796,848				1,478,014				1,478,014
Other Intangibles		27,580				30,837				26,923				29,931				36,947
Operating Lease Right-of-Use Asset		72,090				59,031				69,520				57,783				0
Other Real Estate Owned		26,316				18,472				22,595				15,515				16,865
Other Assets		771,233				532,561				777,634				551,205				559,184
Total Assets	$	26,116,703			$	19,465,080			$	26,184,247			$	19,662,324			$	19,250,498
MEMO: Interest-earning Assets	$	23,122,784			$	17,165,071			$	23,172,403			$	17,344,638			$	16,971,602
Interest-bearing Deposits	$	13,018,640			$	9,281,403			$	13,179,900			$	9,231,059			$	9,577,934
Noninterest-bearing Deposits		7,495,594				4,647,907				7,405,260				4,621,362				4,416,815
Total Deposits		20,514,234				13,929,310				20,585,160				13,852,421				13,994,749
Short-term Borrowings		144,177				132,621				142,300				374,654				351,327
Long-term Borrowings		901,655				1,836,423				864,369				1,838,029				1,499,103
Total Borrowings		1,045,832				1,969,044				1,006,669				2,212,683				1,850,430
Operating Lease Liability		75,805				62,662				73,213				61,342				0
Other Liabilities		161,580				118,702				221,585				172,045				153,695
Total Liabilities		21,797,451				16,079,718				21,886,627				16,298,491				15,998,874
Preferred Equity		0				0				0				0				0
Common Equity		4,319,252				3,385,362				4,297,620				3,363,833				3,251,624
Total Shareholders' Equity		4,319,252				3,385,362				4,297,620				3,363,833				3,251,624
Total Liabilities & Equity	$	26,116,703			$	19,465,080			$	26,184,247			$	19,662,324			$	19,250,498
MEMO: Interest-bearing Liabilities	$	14,064,472			$	11,250,447			$	14,186,569			$	11,443,742			$	11,428,364

UNITED BANKSHARES, INC. AND SUBSIDIARIES Washington, D.C. and Charleston, WV Stock Symbol: UBSI (In Thousands Except for Per Share Data)
	Three Months Ended
	December				December				September				June				March
Quarterly Share Data:	2020				2019				2020				2020				2020
Earnings Per Share:
Basic	$	0.71			$	0.62			$	0.80			$	0.44			$	0.40
Diluted	$	0.71			$	0.62			$	0.80			$	0.44			$	0.40
Common Dividend Declared Per Share	$	0.35			$	0.35			$	0.35			$	0.35			$	0.35
High Common Stock Price	$	32.86			$	40.70			$	30.07			$	33.12			$	39.07
Low Common Stock Price	$	21.19			$	36.09			$	20.57			$	21.52			$	19.67
Average Shares Outstanding (Net of Treasury Stock):
Basic		129,371,600				101,250,489				129,373,154				119,823,652				101,295,073
Diluted		129,479,390				101,537,640				129,454,966				119,887,823				101,399,181
Common Dividends	$	45,442			$	35,543			$	45,414			$	45,416			$	35,604
Dividend Payout Ratio		49.20	%			56.16	%			43.76	%			86.20	%			88.60	%
					Year Ended
					December				December				December				December
YTD Share Data:					2020				2019				2018				2017
Earnings Per Share:
Basic					$	2.40			$	2.55			$	2.46			$	1.54
Diluted					$	2.40			$	2.55			$	2.45			$	1.54
Common Dividend Declared Per Share					$	1.40			$	1.37			$	1.36			$	1.33
Average Shares Outstanding (Net of Treasury Stock):
Basic						120,017,247				101,585,599				104,015,976				97,502,633
Diluted						120,090,232				101,852,577				104,298,825				97,890,078
Common Dividends					$	171,876			$	139,508			$	141,610			$	131,755
Dividend Payout Ratio						59.47	%			53.64	%			55.24	%			87.50	%
	December 31				December 31				September 30				June 30				March 31
EOP Share Data:	2020				2019				2020				2020				2020
Book Value Per Share	$	33.27			$	33.12			$	32.89			$	32.35			$	32.87
Tangible Book Value Per Share (non-GAAP) (1)	$	19.15			$	18.27			$	18.84			$	18.28			$	18.06
52-week High Common Stock Price	$	39.07			$	40.70			$	40.70			$	40.70			$	40.70
Date		01/02/20				11/05/19				11/05/19				11/05/19				11/05/19
52-week Low Common Stock Price	$	19.67			$	30.67			$	19.67			$	19.67			$	19.67
Date		03/23/20				01/02/19				03/23/20				03/23/20				03/23/20
EOP Shares Outstanding (Net of Treasury Stock):		129,188,507				101,553,671				129,762,348				129,755,395				101,723,600
Memorandum Items:
EOP Employees (full-time equivalent)		3,051				2,204				3,137				3,039				2,206
Note:
(1) Tangible Book Value Per Share:
Total Shareholders' Equity (GAAP)	$	4,297,620			$	3,363,833			$	4,267,441			$	4,197,855			$	3,343,702
Less: Total Intangibles		(1,823,771	)			(1,507,945	)			(1,823,129	)			(1,825,887	)			(1,506,368	)
Tangible Equity (non-GAAP)	$	2,473,849			$	1,855,888			$	2,444,312			$	2,371,968			$	1,837,334
÷ EOP Shares Outstanding (Net of Treasury Stock)		129,188,507				101,553,671				129,762,348				129,755,395				101,723,600
Tangible Book Value Per Share (non-GAAP)	$	19.15			$	18.27			$	18.84			$	18.28			$	18.06

UNITED BANKSHARES, INC. AND SUBSIDIARIES Washington, D.C. and Charleston, WV Stock Symbol: UBSI (In Thousands Except for Per Share Data)
	Three Months Ended
	December				December				September				June				March
Selected Yields and Net Interest Margin:	2020				2019				2020				2020				2020
Net Loans and Loans held for sale		4.18	%			4.65	%			4.17	%			4.21	%			4.60	%
Investment Securities		2.08	%			2.74	%			2.17	%			2.44	%			2.70	%
Money Market Investments/FFS		0.42	%			2.57	%			0.42	%			0.49	%			2.23	%
Average Earning Assets Yield		3.62	%			4.28	%			3.59	%			3.70	%			4.21	%
Interest-bearing Deposits		0.43	%			1.33	%			0.54	%			0.67	%			1.19	%
Short-term Borrowings		0.55	%			1.52	%			0.44	%			0.54	%			1.34	%
Long-term Borrowings		1.15	%			2.35	%			1.65	%			1.68	%			2.21	%
Average Liability Costs		0.48	%			1.50	%			0.66	%			0.82	%			1.37	%
Net Interest Spread		3.14	%			2.78	%			2.93	%			2.88	%			2.84	%
Net Interest Margin		3.33	%			3.29	%			3.18	%			3.18	%			3.30	%
Selected Financial Ratios:
Return on Average Assets		1.41	%			1.29	%			1.56	%			0.87	%			0.82	%
Return on Average Shareholders’ Equity		8.51	%			7.42	%			9.68	%			5.40	%			4.82	%
Return on Average Tangible Equity (non-GAAP) (1)		14.72	%			13.38	%			16.94	%			9.58	%			8.77	%
Efficiency Ratio		54.57	%			54.28	%			53.43	%			57.68	%			56.71	%
Note:
(1) Return on Average Tangible Equity:
(a) Net Income (GAAP)	$	92,370			$	63,285			$	103,784			$	52,686			$	40,183
(b) Number of days		92				92				92				91				91
Average Total Shareholders' Equity (GAAP)	$	4,319,252			$	3,385,362			$	4,263,111			$	3,921,289			$	3,350,652
Less: Average Total Intangibles		(1,822,577	)			(1,508,851	)			(1,826,057	)			(1,708,683	)			(1,507,272	)
(c) Average Tangible Equity (non-GAAP)	$	2,496,675			$	1,876,511			$	2,437,054			$	2,212,606			$	1,843,380
Return on Average Tangible Equity (non-GAAP) [(a) / (b)] x 366 or 365 / (c)		14.72	%			13.38	%			16.94	%			9.58	%			8.77	%

UNITED BANKSHARES, INC. AND SUBSIDIARIES Washington, D.C. and Charleston, WV Stock Symbol: UBSI (In Thousands Except for Per Share Data)
	Year Ended
	December				December				December				December
	2020				2019				2018				2017
Selected Yields and Net Interest Margin:
Net Loans and Loans held for sale		4.27	%			4.85	%			4.77	%			4.56	%
Investment Securities		2.33	%			2.86	%			2.73	%			2.63	%
Money Market Investments/FFS		0.65	%			2.91	%			2.29	%			1.23	%
Average Earning Assets Yield		3.75	%			4.47	%			4.36	%			4.07	%
Interest-bearing Deposits		0.67	%			1.41	%			0.97	%			0.54	%
Short-term Borrowings		0.70	%			1.67	%			1.00	%			0.51	%
Long-term Borrowings		1.76	%			2.56	%			2.34	%			1.80	%
Average Liability Costs		0.80	%			1.60	%			1.15	%			0.69	%
Net Interest Spread		2.95	%			2.87	%			3.21	%			3.38	%
Net Interest Margin		3.24	%			3.39	%			3.58	%			3.58	%
Selected Financial Ratios:
Return on Average Assets		1.20	%			1.34	%			1.36	%			0.85	%
Return on Average Shareholders’ Equity		7.30	%			7.80	%			7.84	%			5.09	%
Return on Average Tangible Equity (non-GAAP) (1)		12.90	%			14.26	%			14.65	%			9.18	%
Loans & Leases, net of unearned income / Deposit Ratio		85.46	%			98.99	%			95.91	%			94.08	%
Allowance for Loan & Lease Losses/ Loans & Leases, net of unearned income		1.34	%			0.56	%			0.57	%			0.59	%
Allowance for Credit Losses (2)/ Loans & Leases, net of unearned income		1.45	%			0.57	%			0.58	%			0.59	%
Nonaccrual Loans / Loans & Leases, net of unearned income		0.36	%			0.46	%			0.51	%			0.84	%
90-Day Past Due Loans/ Loans & Leases, net of unearned income		0.08	%			0.07	%			0.11	%			0.08	%
Non-performing Loans/ Loans & Leases, net of unearned income		0.75	%			0.96	%			1.06	%			1.30	%
Non-performing Assets/ Total Assets		0.59	%			0.75	%			0.83	%			1.01	%
Primary Capital Ratio		17.22	%			17.44	%			17.23	%			17.34	%
Shareholders' Equity Ratio		16.41	%			17.11	%			16.89	%			17.00	%
Price / Book Ratio		0.97	x			1.17	x			0.98	x			1.13	x
Price / Earnings Ratio		13.50	x			15.14	x			12.71	x			22.59	x
Efficiency Ratio		55.36	%			52.53	%			51.32	%			53.98	%
Notes:
(1) Return on Average Tangible Equity:
(a) Net Income (GAAP)	$	289,023			$	260,099			$	256,342			$	150,581
Average Total Shareholders' Equity (GAAP)	$	3,956,969			$	3,336,075			$	3,268,944			$	2,959,293
Less: Average Total Intangibles		(1,716,738	)			(1,511,501	)			(1,519,174	)			(1,319,109	)
(b) Average Tangible Equity (non-GAAP)	$	2,240,231			$	1,824,574			$	1,749,770			$	1,640,184
Return on Average Tangible Equity (non-GAAP) [(a) / (b)]		12.90	%			14.26	%			14.65	%			9.18	%
(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
	December				December				September				June				March
	2020				2019				2020				2020				2020
Mortgage Banking Segment Data:
Applications	$	2,284,532			$	896,000			$	3,460,687			$	2,189,008			$	2,054,000
Loans originated		1,979,284				777,312				2,071,717				1,692,297				904,949
Loans sold	$	2,065,400			$	800,400			$	1,898,539			$	1,636,063			$	793,392
Purchase money % of loans closed		49	%			66	%			48	%			42	%			49	%
Realized gain on sales and fees as a % of loans sold		4.10	%			2.84	%			4.26	%			2.49	%			2.82	%
Net interest income	$	2,918			$	547			$	2,740			$	2,246			$	949
Other income		73,082				19,946				110,900				71,013				21,190
Other expense		41,193				18,419				43,417				35,261				20,757
Income taxes		5,656				192				14,823				6,946				273
Net income	$	29,151			$	1,882			$	55,400			$	31,052			$	1,109
					Year Ended
					December				December				December				December
					2020				2019				2018				2017
Mortgage Banking Segment Data:
Applications					$	9,988,227			$	4,330,000			$	3,912,000			$	3,337,000
Loans originated						6,648,247				2,941,722				2,619,454				2,333,895
Loans sold					$	6,393,394			$	2,804,451			$	2,608,242			$	2,350,813
Purchase money % of loans closed						47	%			72	%			83	%			82	%
Realized gain on sales and fees as a % of loans sold						3.63	%			2.86	%			2.72	%			2.80	%
Net interest income					$	8,853			$	916			$	1,315			$	(69	)
Other income						276,185				83,884				68,555				58,532
Other expense						140,628				72,288				72,632				62,072
Income taxes (benefit)						27,698				2,355				(505	)			(901	)
Net income (loss)					$	116,712			$	10,157			$	(2,257	)		$	(2,708	)
	December 31				December 31				September 30				June 30				March 31
	2020				2019				2020				2020				2020
Period End Mortgage Banking Segment Data:
Locked pipeline	$	989,640			$	143,465			$	1,398,898			$	889,275			$	739,322
Balance of loans serviced	$	3,587,953			$	0			$	3,551,157			$	3,552,292			$	0
Number of loans serviced		25,614				0				25,813				25,609				0

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
	2020				2019				2020				2020						2020
Asset Quality Data:
EOP Non-Accrual Loans	$	62,718			$	63,209			$	71,312			$	67,669					$	64,036
EOP 90-Day Past Due Loans		13,832				9,494				12,583				11,150						7,051
EOP Restructured Loans (1)		55,657				58,369				68,381				77,436						61,470
Total EOP Non-performing Loans	$	132,207			$	131,072			$	152,276			$	156,255					$	132,557
EOP Other Real Estate Owned		22,595				15,515				25,696				29,947						15,849
Total EOP Non-performing Assets	$	154,802			$	146,587			$	177,972			$	186,202					$	148,406
	Three Months Ended
	December				December				September				June						March
	2020				2019				2020				2020						2020
Allowance for Loan Losses:
Beginning Balance	$	225,812			$	77,098			$	215,121			$	154,923					$	77,057
Cumulative Effect Adjustment for CECL		0				0				0				0						57,442
		225,812				77,098				215,121				154,923						134,499
Initial allowance for acquired PCD loans		0				0				0				18,635						0
Gross Charge-offs		(10,120	)			(9,704	)			(8,468	)			(5,634	)					(8,761	)
Recoveries		3,203				3,796				2,820				1,290						2,073
Net Charge-offs		(6,917	)			(5,908	)			(5,648	)			(4,344	)					(6,688	)
Provision for Loan & Lease Losses		16,935				5,867				16,339				45,907						27,112
Ending Balance	$	235,830			$	77,057			$	225,812			$	215,121					$	154,923
Reserve for lending-related commitments		19,250				1,733				15,960				11,946						7,742
Allowance for Credit Losses (2)	$	255,080			$	78,790			$	241,772			$	227,067					$	162,665
					Year Ended
					December				December				December						December
					2020				2019				2018						2017
Allowance for Loan Losses:
Beginning Balance					$	77,057			$	76,703			$	76,627					$	72,771
Cumulative Effect Adjustment for CECL						57,442				0				0						0
						134,499				76,703				76,627						72,771
Initial allowance for acquired PCD loans						18,635				0				0						0
Gross Charge-offs						(32,983	)			(29,110	)			(28,606	)					(32,863	)
Recoveries						9,386				8,151				6,669						8,313
Net Charge-offs						(23,597	)			(20,959	)			(21,937	)					(24,550	)
Provision for Loan & Lease Losses						106,293				21,313				22,013						28,406
Ending Balance					$	235,830			$	77,057			$	76,703					$	76,627
Reserve for lending-related commitments						19,250				1,733				1,389						679
Allowance for Credit Losses (2)					$	255,080			$	78,790			$	78,092					$	77,306

Notes:
(1)	Restructured loans with an aggregate balance of $41,185, $53,665, $59,916, $51,775 and $48,387 at December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020 and December 31, 2019, respectively, were on nonaccrual status, but are not included in “EOP Non-Accrual Loans” above.
(2)	Includes allowances for loan losses and lending-related commitments.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210128005242/en/