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United Bankshares, Inc. Announces Record Earnings for the First Quarter of 2021

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United Bankshares, Inc. (NASDAQ: UBSI) ("United"), today reported record earnings for the first quarter of 2021 of $106.9 million, or $0.83 per diluted share, up significantly from earnings of $40.2 million, or $0.40 per diluted share for the first quarter of 2020.

First quarter of 2021 results produced annualized returns on average assets, average equity and average tangible equity of 1.64%, 9.97% and 17.20%, respectively, compared to annualized returns on average assets, average equity and average tangible equity of 0.82%, 4.82% and 8.77%, respectively, for the first quarter of 2020.

Record earnings for the first quarter of 2021, as compared to the first quarter of 2020, were primarily due to higher income from mortgage banking activities, driven by an elevated volume of mortgage loan originations and sales in the secondary market, the impact of the Carolina Financial Corporation ("Carolina Financial") acquisition and a lower provision for credit losses primarily due to better performance trends within the loan portfolio and an improved future macroeconomic forecast under the Current Expected Credit Loss ("CECL") accounting standard.

"The first quarter of 2021 was another great quarter for United Bankshares, and UBSI continues to be one of the best performing regional banking companies in the nation," stated Richard M. Adams, United’s Chairman of the Board and Chief Executive Officer. "We earned record net income of $107 million, record diluted earnings per share of $0.83 and delivered an annualized return on average assets of 1.64%. Our credit quality and regulatory ratios remain strong and position us well for continued growth as the economy recovers from the effects of the COVID-19 pandemic."

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 first quarter of 2021 reflected higher average balances, income, and expense as compared to the first quarter of 2020. The first quarter of 2020 included merger-related expenses of $1.6 million. There were no merger-related expenses incurred in the first quarter of 2021.

Net Interest Income and Net Interest Margin

Net interest income for the first quarter of 2021 was $191.0 million, which was an increase of $49.4 million or 35% from the first quarter of 2020, 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 first quarter of 2021 increased $49.7 million or 35% from the first quarter of 2020 to $192.0 million. The net interest spread for the first quarter of 2021 increased 30 basis points from the first quarter of 2020 due to a 95 basis point decrease in the average cost of funds partially offset by a 65 basis point decrease in the average yield on earning assets, reflecting the decline in market interest rates. Average earning assets for the first quarter of 2021 increased $6.2 billion or 36% from the first quarter of 2020 due to a $4.1 billion increase in average net loans and loans held for sale, a $1.6 billion increase in average short-term investments and a $572.8 million increase in average investment securities. PPP loan fee income of $11.3 million was recognized in the first quarter of 2021 driven primarily by loan forgiveness. The net interest margin of 3.30% for the first quarter of 2021 was flat from the first quarter of 2020.

On a linked-quarter basis, net interest income for the first quarter of 2021 was relatively flat from the fourth quarter of 2020, decreasing $1.0 million or less than 1%. United’s tax-equivalent net interest income for the first quarter of 2021 was also relatively flat from the fourth quarter of 2020. The net interest spread for the first quarter of 2021 of 3.14% remained flat from the fourth quarter of 2020 due to equal 6 basis point decreases in the average cost of funds and the average yield on earning assets. PPP loan fee income for the first quarter of 2021 increased $4.3 million from the fourth quarter of 2020, driven primarily by higher loan forgiveness. Average earning assets increased approximately $384.6 million or 2% from the fourth quarter of 2020, due mainly to increases in average investment securities of $136.7 million and average short-term investments of $521.6 million partially offset by a decrease in average net loans and loans held for sale of $273.6 million. Loan accretion on acquired loans decreased $1.1 million from the fourth quarter of 2020. The net interest margin of 3.30% for the first quarter of 2021 was a decrease of 3 basis points from the net interest margin of 3.33% for the fourth quarter of 2020.

Credit Quality

United’s asset quality continues to be sound relative to the current economic environment. At March 31, 2021, nonperforming loans were $116.2 million, or 0.67% of loans & leases, net of unearned income, down from $132.2 million, or 0.75% of loans & leases, net of unearned income, at December 31, 2020. Total nonperforming assets of $134.9 million, including OREO of $18.7 million at March 31, 2021, represented 0.50% of total assets as compared to nonperforming assets of $154.8 million, including OREO of $22.6 million or 0.59% of total assets at December 31, 2020.

The provision for credit losses was $143 thousand and $27.1 million for the first quarter of 2021 and 2020, respectively. On a linked-quarter basis, the provision for credit losses for the first quarter of 2021 decreased $16.6 million from $16.8 million for the fourth quarter of 2020. The decrease in the provision in relation to the prior year quarter and in relation to the linked-quarter was primarily driven by the impact of better performance trends within the loan portfolio and improvements in the reasonable and supportable forecasts of future macroeconomic conditions on the estimate of expected credit losses under CECL.

As of March 31, 2021, the allowance for loan losses was $231.6 million or 1.33% of loans & leases, net of unearned income, as compared to $235.8 million or 1.34% of loans & leases, net of unearned income, at December 31, 2020. Net charge-offs were $4.5 million and $6.7 million for the first quarter of 2021 and 2020, respectively. Annualized net charge-offs as a percentage of average loans & leases, net of unearned income were 0.10% for the first quarter of 2021, compared to 0.20% for the first quarter of 2020. Net charge-offs were $6.9 million for the fourth quarter of 2020.

Noninterest Income

Noninterest income for the first quarter of 2021 was $92.6 million, which was an increase of $55.8 million or 152% from the first quarter of 2020. The increase was driven primarily by a $47.8 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 first quarter of 2021 also included $2.4 million in mortgage loan servicing income as a result of the Carolina Financial acquisition and a $2.4 million increase in net gains on investment securities in relation to the first quarter of 2020.

On a linked-quarter basis, noninterest income for the first quarter of 2021 decreased $1.5 million or 2% from the fourth quarter of 2020 primarily due to a decrease of $5.4 million in income from mortgage banking activities. Mortgage loan originations and sales volumes remained strong in the first quarter of 2021, but down from the fourth quarter of 2020. Noninterest income for the first quarter of 2021 included a $2.0 million increase in net gains on investment securities and a $1.2 million increase in fees from brokerage services in relation to the fourth quarter of 2020.

Noninterest Expense

Noninterest expense for the first quarter of 2021 was $148.9 million, an increase of $47.8 million or 47% from the first quarter of 2020. Employee compensation increased $27.9 million from the first quarter of 2020 due to the Carolina Financial acquisition as well as due to higher employee incentives and commissions expense mainly related to higher mortgage banking production. Additionally, noninterest expense increased from the first quarter of 2020 due to increases of $4.7 million in employee benefits, $3.0 million in mortgage loan servicing expense and impairment, $2.7 million in OREO expense, $2.2 million in equipment expense, $1.9 million in net occupancy expense and $4.4 million in other expenses. Within other expenses, the largest driver of the increase was an increase in the amortization of income tax credits of $1.2 million. The increase in OREO expense was due mainly to declines in the fair value of OREO properties while the increases in employee benefits, mortgage loan servicing expense and impairment, equipment expense and net occupancy expense were mainly from the Carolina Financial acquisition.

On a linked-quarter basis, noninterest expense for the first quarter of 2021 decreased $7.2 million or 5% from the fourth quarter of 2020 primarily due to decreases of $4.6 million in employee compensation and $5.1 million in other expenses. Employee compensation declined from the fourth quarter of 2020 primarily due a decline in expenses for salaries (fewer employees), incentives and commissions (lower mortgage banking production) recognized in the first quarter of 2021. Within other expenses, the largest driver of the decrease was a decrease in the expense for the reserve for unfunded commitments of $2.5 million.

Income Tax Expense

For the first quarter of 2021, income tax expense was $27.6 million as compared to $9.9 million for the first quarter of 2020. The increase in the comparative quarter was due to higher earnings and a higher effective tax rate. On a linked-quarter basis, income tax expense increased $6.7 million primarily due to higher earnings and a higher effective tax rate. United’s effective tax rate was 20.5% for the first quarter of 2021, 19.8% for the first quarter of 2020 and 18.4% for the fourth quarter of 2020.

Regulatory Capital

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 15.7% at March 31, 2021 while estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 13.5%, 13.5% and 10.4%, respectively. The March 31, 2021 ratios reflect United’s election of a five-year transition provision, allowed by the Federal Reserve Board and other federal banking agencies in response to the COVID-19 pandemic, to delay for two years the full impact of CECL on regulatory capital, followed by a three-year transition period. The regulatory requirements for a well-capitalized financial institution are a risk-based capital ratio of 10.0%, a Common Equity Tier 1 capital ratio of 6.5%, a Tier 1 capital ratio of 8.0% and a leverage ratio of 5.0%.

About United Bankshares, Inc.

As of March 31, 2021, United had consolidated assets of approximately $27.0 billion. United is the parent company of United Bank, the largest community bank headquartered in the D.C. Metro region. United Bank has 223 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 March 31, 2021 consolidated financial statements on Form 10-Q. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of March 31, 2021 and will adjust amounts preliminarily reported, if necessary.

Use of non-GAAP Financial Measures

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

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

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

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

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

Forward-Looking Statements

In this report, we have made various statements regarding current expectations or forecasts of future events, which speak only as of the date the statements are made. These statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are also made from time-to-time in press releases and in oral statements made by the officers of the Company. Forward-looking statements can be identified by the use of the words "expect," "may," "could," "intend," "project," "estimate," "believe," "anticipate," and other words of similar meaning. Such forward-looking statements are based on assumptions and estimates, which although believed to be reasonable, may turn out to be incorrect, 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, 2020, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov. Further, any forward-looking statement speaks only as of the date on which it is made, and United undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. You are advised to consult further disclosures United may make on related subjects in our filings with the SEC.

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

Three Months Ended

March

March

December

2021

2020

2020

EARNINGS SUMMARY:

Interest income

$

205,657

$

180,482

$

208,914

Interest expense

14,697

38,964

16,925

Net interest income

190,960

141,518

191,989

Provision for credit losses

143

27,119

16,751

Noninterest income

92,573

36,806

94,082

Noninterest expense

148,927

101,133

156,117

Income before income taxes

134,463

50,072

113,203

Income taxes

27,565

9,889

20,833

Net income

$

106,898

$

40,183

$

92,370

PER COMMON SHARE:

Net income:

Basic

$

0.83

$

0.40

$

0.71

Diluted

0.83

0.40

0.71

Cash dividends

0.35

0.35

0.35

Book value

33.54

32.87

33.27

Closing market price

$

38.58

$

23.08

$

32.40

Common shares outstanding:

Actual at period end, net of treasury shares

129,175,800

101,723,600

129,188,507

Weighted average-basic

128,635,740

101,295,073

129,371,600

Weighted average-diluted

128,890,861

101,399,181

129,479,390

FINANCIAL RATIOS:

Return on average assets

1.64%

0.82%

1.41%

Return on average shareholders’ equity

9.97%

4.82%

8.51%

Return on average tangible equity (non-GAAP)(1)

17.20%

8.77%

14.72%

Average equity to average assets

16.41%

17.10%

16.54%

Net interest margin

3.30%

3.30%

3.33%

March 31

March 31

December 31

2021

2020

2020

PERIOD END BALANCES:

Assets

$

27,030,755

$

20,370,653

$

26,184,247

Earning assets

24,023,292

17,966,159

23,172,403

Loans & leases, net of unearned income

17,365,891

13,855,558

17,591,413

Loans held for sale

808,134

503,514

718,937

Investment securities

3,402,922

2,673,415

3,186,184

Total deposits

21,396,474

14,014,168

20,585,160

Shareholders’ equity

4,332,698

3,343,702

4,297,620

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

March

March

December

2021

2020

2020

Interest & Loan Fees Income (GAAP)

$

205,657

$

180,482

$

208,914

Tax equivalent adjustment

1,047

782

1,042

Interest & Fees Income (FTE) (non-GAAP)

206,704

181,264

209,956

Interest Expense

14,697

38,964

16,925

Net Interest Income (FTE) (non-GAAP)

192,007

142,300

193,031

Provision for Credit Losses

143

27,119

16,751

Noninterest Income:

Fees from trust services

3,763

3,483

3,585

Fees from brokerage services

4,323

2,916

3,125

Fees from deposit services

8,896

7,957

9,501

Bankcard fees and merchant discounts

1,064

993

1,129

Other charges, commissions, and fees

759

518

753

Income from bank-owned life insurance

1,403

2,388

1,479

Income from mortgage banking activities

65,395

17,631

70,793

Mortgage loan servicing income

2,355

0

2,334

Net gains on investment securities

2,609

196

589

Other noninterest income

2,006

724

794

Total Noninterest Income

92,573

36,806

94,082

Noninterest Expense:

Employee compensation

72,412

44,541

77,001

Employee benefits

15,450

10,786

12,103

Net occupancy

10,941

9,062

10,979

Data processing

7,026

5,506

7,280

Amortization of intangibles

1,466

1,577

1,691

OREO expense

3,625

906

3,069

Equipment expense

6,044

3,845

6,396

FDIC insurance expense

2,000

2,400

2,250

Mortgage loan servicing expense and impairment

3,177

138

3,482

Other expenses

26,786

22,372

31,866

Total Noninterest Expense

148,927

101,133

156,117

Income Before Income Taxes (FTE) (non-GAAP)

135,510

50,854

114,245

Tax equivalent adjustment

1,047

782

1,042

Income Before Income Taxes (GAAP)

134,463

50,072

113,203

Taxes

27,565

9,889

20,833

Net Income

$

106,898

$

40,183

$

92,370

MEMO: Effective Tax Rate

20.50%

19.75%

18.40%

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

Consolidated Balance Sheets

March 2021

March 2020

March 31

December 31

Q-T-D Average

Q-T-D Average

2021

2020

Cash & Cash Equivalents

$

2,583,986

$

899,899

$

2,963,138

$

2,209,068

Securities Available for Sale

2,984,281

2,410,653

3,171,663

2,953,359

Less: Allowance for credit losses

0

0

0

0

Net available for sale securities

2,984,281

2,410,653

3,171,663

2,953,359

Securities Held to Maturity

1,027

1,238

1,020

1,235

Less: Allowance for credit losses

(23)

(4)

(23)

(23)

Net held to maturity securities

1,004

1,234

997

1,212

Equity Securities

10,893

9,004

11,054

10,718

Other Investment Securities

219,937

222,419

219,208

220,895

Total Securities

3,216,115

2,643,310

3,402,922

3,186,184

Total Cash and Securities

5,800,101

3,543,209

6,366,060

5,395,252

Loans held for sale

621,688

306,435

808,134

718,937

Commercial Loans & Leases

13,298,719

9,423,190

13,126,945

13,165,497

Mortgage Loans

3,114,722

3,102,307

3,021,289

3,197,274

Consumer Loans

1,230,949

1,240,713

1,252,087

1,259,812

Gross Loans

17,644,390

13,766,210

17,400,321

17,622,583

Unearned income

(28,526)

(624)

(34,430)

(31,170)

Loans & Leases, net of unearned income

17,615,864

13,765,586

17,365,891

17,591,413

Allowance for Loan & Leases Losses

(235,795)

(134,084)

(231,582)

(235,830)

Net Loans

17,380,069

13,631,502

17,134,309

17,355,583

Mortgage Servicing Rights

21,186

0

22,018

20,955

Goodwill

1,799,328

1,478,014

1,804,038

1,796,848

Other Intangibles

26,311

29,258

25,457

26,923

Operating Lease Right-of-Use Asset

68,030

57,776

69,369

69,520

Other Real Estate Owned

22,457

15,564

18,690

22,595

Other Assets

751,946

537,495

782,680

777,634

Total Assets

$

26,491,116

$

19,599,253

$

27,030,755

$

26,184,247

MEMO: Interest-earning Assets

$

23,507,417

$

17,295,754

$

24,023,292

$

23,172,403

...

Interest-bearing Deposits

$

13,184,728

$

9,278,782

$

13,302,704

$

13,179,900

Noninterest-bearing Deposits

7,735,638

4,627,044

8,093,770

7,405,260

Total Deposits

20,920,366

13,905,826

21,396,474

20,585,160

Short-term Borrowings

142,155

137,427

145,200

142,300

Long-term Borrowings

833,365

2,002,763

814,195

864,369

Total Borrowings

975,520

2,140,190

959,395

1,006,669

Operating Lease Liability

71,696

61,355

73,531

73,213

Other Liabilities

176,784

141,230

268,657

221,585

Total Liabilities

22,144,366

16,248,601

22,698,057

21,886,627

Preferred Equity

0

0

0

0

Common Equity

4,346,750

3,350,652

4,332,698

4,297,620

Total Shareholders' Equity

4,346,750

3,350,652

4,332,698

4,297,620

Total Liabilities & Equity

$

26,491,116

$

19,599,253

$

27,030,755

$

26,184,247

MEMO: Interest-bearing Liabilities

$

14,160,248

$

11,418,972

$

14,262,099

$

14,186,569

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

Three Months Ended

March

March

December

Quarterly Share Data:

2021

2020

2020

Earnings Per Share:

Basic

$

0.83

$

0.40

$

0.71

Diluted

$

0.83

$

0.40

$

0.71

Common Dividend Declared Per Share

$

0.35

$

0.35

$

0.35

High Common Stock Price

$

41.61

$

39.07

$

32.86

Low Common Stock Price

$

31.57

$

19.67

$

21.19

Average Shares Outstanding (Net of Treasury Stock):

Basic

128,635,740

101,295,073

129,371,600

Diluted

128,890,861

101,399,181

129,479,390

Common Dividends

$

45,254

$

35,604

$

45,442

Dividend Payout Ratio

42.33%

88.60%

49.20%

March 31

March 31

December

EOP Share Data:

2021

2020

2020

Book Value Per Share

$

33.54

$

32.87

$

33.27

Tangible Book Value Per Share (non-GAAP) (1)

$

19.38

$

18.06

$

19.15

52-week High Common Stock Price

$

41.61

$

40.70

$

39.07

Date

03/18/21

11/05/19

01/02/20

52-week Low Common Stock Price

$

20.57

$

19.67

$

19.67

Date

09/25/20

03/23/20

03/23/20

EOP Shares Outstanding (Net of Treasury Stock):

129,175,800

101,723,600

129,188,507

Memorandum Items:

EOP Employees (full-time equivalent)

3,033

2,206

3,051

Note:

(1) Tangible Book Value Per Share:

Total Shareholders' Equity (GAAP)

$

4,332,698

$

3,343,702

$

4,297,620

Less: Total Intangibles

(1,829,495)

(1,506,368)

(1,823,771)

Tangible Equity (non-GAAP)

$

2,503,203

$

1,837,334

$

2,473,849

÷ EOP Shares Outstanding (Net of Treasury Stock)

129,175,800

101,723,600

129,188,507

Tangible Book Value Per Share (non-GAAP)

$

19.38

$

18.06

$

19.15

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

Three Months Ended

March

March

December

2021

2020

2020

Selected Yields and Net Interest Margin:

Net Loans and Loans held for sale

4.26%

4.60%

4.18%

Investment Securities

1.93%

2.70%

2.08%

Money Market Investments/FFS

0.34%

2.23%

0.42%

Average Earning Assets Yield

3.56%

4.21%

3.62%

Interest-bearing Deposits

0.37%

1.19%

0.43%

Short-term Borrowings

0.51%

1.34%

0.55%

Long-term Borrowings

1.23%

2.21%

1.15%

Average Liability Costs

0.42%

1.37%

0.48%

Net Interest Spread

3.14%

2.84%

3.14%

Net Interest Margin

3.30%

3.30%

3.33%

Selected Financial Ratios:

Return on Average Assets

1.64%

0.82%

1.41%

Return on Average Shareholders’ Equity

9.97%

4.82%

8.51%

Return on Average Tangible Equity (non-GAAP) (1)

17.20%

8.77%

14.72%

Loans & Leases, net of unearned income / Deposit Ratio

81.16%

98.87%

85.46%

Allowance for Loan & Lease Losses/ Loans & Leases, net of unearned income

1.33%

1.12%

1.34%

Allowance for Credit Losses (2)/ Loans & Leases, net of unearned income

1.45%

1.17%

1.45%

Nonaccrual Loans / Loans & Leases, net of unearned income

0.28%

0.46%

0.36%

90-Day Past Due Loans/ Loans & Leases, net of unearned income

0.09%

0.05%

0.08%

Non-performing Loans/ Loans & Leases, net of unearned income

0.67%

0.96%

0.75%

Non-performing Assets/ Total Assets

0.50%

0.73%

0.59%

Primary Capital Ratio

16.80%

17.08%

17.22%

Shareholders' Equity Ratio

16.03%

16.41%

16.41%

Price / Book Ratio

1.15

x

0.70

x

0.97

x

Price / Earnings Ratio

11.63

x

14.56

x

11.35

x

Efficiency Ratio

52.53%

56.71%

54.57%

Notes:

(1) Return on Average Tangible Equity:

(a) Net Income (GAAP)

$

106,898

$

40,183

$

92,370

(b) Number of Days

90

91

92

Average Total Shareholders' Equity (GAAP)

$

4,346,750

$

3,350,652

$

4,319,252

Less: Average Total Intangibles

(1,825,639)

(1,507,272)

(1,822,577)

(c) Average Tangible Equity (non-GAAP)

$

2,521,111

$

1,843,380

$

2,496,675

Return on Average Tangible Equity (non-GAAP) [(a) / (b)] x 365 or 366 / (c)

17.20%

8.77%

14.72%

(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

March

March

December

2021

2020

2020

Mortgage Banking Segment Data:

Applications

$

2,630,426

$

2,054,000

$

2,284,532

Loans originated

1,910,619

904,949

1,979,284

Loans sold

$

1,817,884

$

793,392

$

2,065,400

Purchase money % of loans closed

43%

49%

49%

Realized gain on sales and fees as a % of loans sold

4.16%

2.82%

4.10%

Net interest income

$

2,650

$

949

$

2,918

Other income

67,507

21,190

73,082

Other expense

41,183

20,757

41,193

Income taxes

5,940

273

5,656

Net income

$

23,034

$

1,109

$

29,151

March 31

March 31

December 31

2021

2020

2020

Period End Mortgage Banking Segment Data:

Locked pipeline

$

979,842

$

739,322

$

989,640

Balance of loans serviced

$

3,585,890

$

0

$

3,587,953

Number of loans serviced

25,443

0

25,614

March 31

March 31

December 31

2021

2020

2020

Asset Quality Data:

EOP Non-Accrual Loans

$

48,985

$

64,036

$

62,718

EOP 90-Day Past Due Loans

15,719

7,051

13,832

EOP Restructured Loans (1)

51,529

61,470

55,657

Total EOP Non-performing Loans

$

116,233

$

132,557

$

132,207

EOP Other Real Estate Owned

18,690

15,849

22,595

Total EOP Non-performing Assets

$

134,923

$

148,406

$

154,802

Three Months Ended

March

March

December

2021

2020

2020

Allowance for Loan Losses:

Beginning Balance

$

235,830

$

77,057

$

225,812

Cumulative Effect Adjustment for CECL

0

57,442

0

235,830

134,499

225,812

Initial allowance for acquired PCD loans

0

0

0

Gross Charge-offs

(6,957)

(8,761)

(10,120)

Recoveries

2,415

2,073

3,203

Net Charge-offs

(4,542)

(6,688)

(6,917)

Provision for Loan & Lease Losses

294

27,112

16,935

Ending Balance

$

231,582

$

154,923

$

235,830

Reserve for lending-related commitments

20,024

7,742

19,250

Allowance for Credit Losses (2)

$

251,606

$

162,665

$

255,080

Notes:

(1)

Restructured loans with an aggregate balance of $38,023, $51,775 and $41,185 at March 31, 2021, March 31, 2020 and December 31, 2020, 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/20210423005101/en/

Contacts

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