United Bankshares, Inc. Announces Earnings for the Third Quarter and First Nine Months of 2018

United Bankshares, Inc. (NASDAQ: UBSI), today reported earnings for the third quarter and the first nine months of 2018. Earnings for the third quarter of 2018 were $64.4 million as compared to earnings of $56.7 million for the third quarter of 2017. Diluted earnings per share were $0.62 for the third quarter of 2018 as compared to diluted earnings per share of $0.54 for the third quarter of 2017. Earnings for the first nine months of 2018 were a record $192.4 million as compared to earnings of $132.6 million for the first nine months of 2017. Diluted earnings per share were $1.83 for the first nine months of 2018 as compared to diluted earnings per share of $1.39 per diluted share for the first nine months of 2017.

Third quarter of 2018 results produced an annualized return on average assets of 1.34% and an annualized return on average equity of 7.83%, respectively. For the first nine months of 2018, Uniteds return on average assets was 1.37% while the return on average equity was 7.86%. Uniteds annualized returns on average assets and average equity were 1.19% and 6.89%, respectively, for the third quarter of 2017 while the returns on average assets and average equity were 1.03% and 6.22%, respectively, for the first nine months of 2017.

Our earnings continue to be strong, achieving record earnings and outperforming peer profitability, stated Richard M. Adams, Uniteds Chairman of the Board and Chief Executive Officer.

On April 21, 2017, United completed its acquisition of Cardinal Financial Corporation (Cardinal) of Tysons Corner, Virginia. The results of operations of Cardinal are included in the consolidated results of operations from the date of acquisition. As a result of the Cardinal acquisition, the first nine months of 2018 were impacted by increased levels of average balances, income, and expense as compared to the first nine months of 2017. In addition, the third quarter and first nine months of 2017 included $532 thousand and $25.0 million, respectively, of merger-related expenses from the Cardinal acquisition.

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Net interest income for the third quarter of 2018 was $148.8 million, which was a decrease of $1.5 million or 1% from the third quarter of 2017. Tax-equivalent net interest income, which adjusts for the tax-favored status of income from certain loans and investments, for the third quarter of 2018 was $149.8 million, a decrease of $2.5 million or 2% from the third quarter of 2017 due mainly to an increase of 54 basis points in the average cost of funds as compared to the third quarter of 2017 due to higher market interest rates.

In addition, loan accretion on acquired loans was $11.6 million and $12.8 million for the third quarter of 2018 and 2017, respectively, decreasing $1.2 million or 10%. Partially offsetting these decreases to tax-equivalent net interest income for the third quarter of 2018 was an increase of 26 basis points in the average yield on earning assets as compared to the third quarter of 2017 due to higher market interest rates. In addition, average earning assets for the third quarter of 2018 increased $172.5 million or 1% from the third quarter of 2017 due mainly to an increase of $491.9 million or 27% in average investment securities. Partially offsetting this increase was a decrease in average short-term investments of $335.3 million or 27%. Average net loans remained flat for the third quarter, increasing $15.9 million or less than 1% from the third quarter of 2017. The net interest margin of 3.56% for the third quarter of 2018 was a decrease of 9 basis points from the net interest margin of 3.65% for the third quarter of 2017.

Net interest income for the first nine months of 2018 was $441.9 million, which was an increase of $47.8 million or 12% from the first nine months of 2017. Tax-equivalent net interest income for the first nine months of 2018 was $445.2 million, an increase of $44.9 million or 11% from the first nine months of 2017. This increase in tax-equivalent net interest income was primarily attributable to an increase in average earning assets from the Cardinal acquisition. Average earning assets increased $1.3 billion or 8% from the first nine months of 2017 as average net loans increased $1.1 billion or 9% for the first nine months of 2018. Average investment securities increased $613.1 million or 37% while short-term investments decreased $436.1 million or 34%. The first nine months of 2018 average yield on earning assets increased 34 basis points from the first nine months of 2017 due to higher market interest rates and additional loan accretion of $10.0 million on acquired loans. Loan accretion was $34.4 million and $24.4 million for the first nine months of 2018 and 2017, respectively. Partially offsetting the increases to tax-equivalent net interest income for the first nine months of 2018 was an increase of 39 basis points in the average cost of funds as compared to the first nine months of 2017 due to higher market interest rates. The net interest margin of 3.61% for the first nine months of 2018 was an increase of 9 basis points from the net interest margin of 3.52% for the first nine months of 2017.

On a linked-quarter basis, net interest income for the third quarter of 2018 was relatively flat from the second quarter of 2018, decreasing $347 thousand or less than 1%. Uniteds tax-equivalent net interest income for the third quarter of 2018 was also relatively flat, decreasing $413 thousand or less than 1% due to a combination of a $265.9 million or 2% increase in interest bearing funds and an increase of 22 basis points in the average cost of funds as a result of higher market interest rates. In addition, loan accretion on acquired loans decreased $497 thousand. Partially offsetting these increases to tax-equivalent net interest income for the third quarter of 2018 was a $334.5 million or 2% increase in the average earning assets and a 5 basis points increase in the yield on average earning assets. Specifically, average short-term investments increased $262.1 million or 40%. Average net loans and average investment securities were relatively flat for the third quarter of 2018, increasing $80.2 million and decreasing $7.8 million, respectively from the second quarter of 2018. The net interest margin of 3.56% for the third quarter of 2018 decreased 11 basis points from the net interest margin of 3.67% for the second quarter of 2018.

For the quarters ended September 30, 2018 and 2017, the provision for loan losses was $4.8 million and $7.3 million, respectively, while the provision for the first nine months of 2018 was $16.2 million as compared to $21.4 million for the first nine months of 2017. Net charge-offs were $5.0 million and $15.9 million for the third quarter and first nine months of 2018, respectively, as compared to $5.3 million and $19.3 million for the third quarter and first nine months of 2017, respectively. Annualized net charge-offs as a percentage of average loans were 0.15% and 0.16% for the third quarter and first nine months of 2018, respectively. On a linked-quarter basis, the provision for loan losses decreased $1.4 million while net charge-offs decreased $720 thousand from the second quarter of 2018.

Noninterest income for the third quarter of 2018 was $31.7 million, which was a decrease of $6.5 million or 17% from the third quarter of 2017. The decrease was due mainly to a decrease of $7.1 million in income from mortgage banking activities due to decreased production and sales of mortgage loans in the secondary market by Uniteds mortgage banking subsidiary, George Mason. However, George Mason did originate approximately $178.3 million of portfolio mortgage loan products for United Bank during the third quarter of 2018. In addition, net gains and losses on investment securities activity declined $619 thousand.

Noninterest income for the first nine months of 2018 was $98.9 million, which was flat from the first nine months of 2017, increasing $4 thousand or less than 1%. Income from mortgage banking activities for the first nine months of 2018 increased $2.9 million from the first nine months of 2017. This increase was mainly due to including the production and sales of mortgage loans in the secondary market by George Mason for nine months in 2018 as compared to slightly over five months in 2017. In addition, fees from brokerage services and bankcard fees increased $1.1 million and $952 thousand, respectively, due to increased volume. Fees from trust services increased $680 thousand due to an increase in the value of managed assets while fees from deposit services increased $345 thousand mainly due to higher income from debit card and automated teller machine (ATM) fees. Mostly offsetting these increases was a decline in net gains and losses on investment securities activity of $5.8 million for the first nine months of 2018 from the first nine months of 2017 due mainly to a net gain of $3.8 million on the redemption of an investment security during the first quarter of 2017.

On a linked-quarter basis, noninterest income for the third quarter of 2018 decreased $4.3 million or 12% from the second quarter of 2018. The decrease was due mainly to a decrease of $5.4 million in income from mortgage banking activities due mainly to a change in fair value of $6.2 million on George Masons interest rate lock commitments. In addition, net gains and losses on investment securities activity decreased $97 thousand. Partially offsetting these decreases in noninterest income was a $834 thousand increase in fees from brokerage services as well as a $253 thousand increase in fees from deposit services and a $246 thousand increase in fees from trust services mainly due to increased volume.

Noninterest expense for the third quarter of 2018 was $93.3 million, a decrease of $3.3 million or 3% from the third quarter of 2017. In particular, employee compensation decreased $3.6 million due mainly to a decrease of $3.2 million in commissions expense, other real estate owned (OREO) expense decreased $1.8 million and merger expenses decreased $434 thousand. Partially offsetting these decreases was an increase in Federal Deposit Insurance Corporation (FDIC) insurance expense of $2.0 million as United Bank is now considered a large institution and subject to increased assessment rates. In addition, equipment expense increased $835 thousand due to increased maintenance expense and data processing expense increased $471 thousand due to additional processing.

Noninterest expense for the first nine months of 2018 was $277.2 million, an increase of $5.5 million or 2% from the first nine months of 2017 due mainly to the additional employees and branch offices from the Cardinal acquisition as most major categories of noninterest expense showed increases partially offset by a decline in the associated merger-related expenses of the acquisition. In particular, employee benefits increased $1.8 million, employee compensation increased $323 thousand, equipment expense increased $2.8 million, and data processing expense increased $2.8 million. In addition, FDIC insurance expense increased $3.2 million due to United Bank now being considered a large institution as previously mentioned. Partially offsetting these increases was a decrease in net occupancy expense of $2.3 million due to the expense for the termination of leases and the reduction in value of leasehold improvements for closed offices in the Cardinal acquisition being included in the first nine months of 2017. In addition, OREO expense decreased $2.2 million and other expense decreased $943 thousand due to a decrease in merger-related expenses.

On a linked-quarter basis, noninterest expense for the third quarter of 2018 was flat from the second quarter of 2018, decreasing $95 thousand or less than 1%. In particular, employee compensation and employee benefits decreased $1.8 million and $653 thousand, respectively, as a result of lower commissions expense and fewer employees related to a decrease in production and sales of mortgage loans at George Mason. Mostly offsetting these decreases in noninterest expense was an increase in FDIC insurance expense of $688 thousand due to United Bank now being considered a large institution as previously mentioned. In addition, equipment expense increased $613 thousand, data processing expense increased $251 thousand, OREO expense increased $365 thousand, and net occupancy expense increased $197 thousand.

For the third quarter and first nine months of 2018, income tax expense was $17.9 million and $55.1 million, respectively, as compared to $27.8 million and $67.4 million, respectively, in the third quarter and first nine months of 2017. The decreases in 2018 were mainly due to a decline in the effective tax rate as a result of the Tax Cuts and Jobs Act of 2017 (the Tax Act). On a linked-quarter basis, income tax expense for the third quarter of 2018 decreased $1.3 million from the second quarter of 2018 due to a combination of lower earnings and a lower effective tax rate. Uniteds effective tax rate was 21.77% for the third quarter of 2018, 22.50% for the second quarter of 2018 and 32.91% for the third quarter of 2017. For the first nine months of 2018 and 2017, United’s effective tax rate was 22.25% and 33.68%, respectively. The lower effective tax rate for the time periods in 2018 was due to the impact of the Tax Act.

Uniteds asset quality continues to be sound. At September 30, 2018, nonperforming loans were $146.1 million, or 1.10% of loans, net of unearned income, down from nonperforming loans of $168.7 million, or 1.30% of loans, net of unearned income, at December 31, 2017. As of September 30, 2018, the allowance for loan losses was $76.9 million or 0.58% of loans, net of unearned income, as compared to $76.6 million or 0.59% of loans, net of unearned income, at December 31, 2017. Total nonperforming assets of $164.9 million, including OREO of $18.8 million at September 30, 2018, represented 0.86% of total assets as compared to nonperforming assets of $193.1 million or 1.01%, including OREO of $24.3 million at December 31, 2017.

United continues to be well-capitalized based upon regulatory guidelines. Uniteds estimated risk-based capital ratio is 14.6% at September 30, 2018 while its estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 12.4%, 12.4% and 10.3%, respectively. 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%.

As of September 30, 2018, United had consolidated assets of approximately $19.2 billion with 140 full service offices in West Virginia, Virginia, Maryland, Ohio, Pennsylvania and Washington, D.C. United Bankshares 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 September 30, 2018 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 September 30, 2018 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 Uniteds results of operations or financial position. Presentation of these non-GAAP financial measures is consistent with how Uniteds 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 and tangible book value per share. Management believes these non-GAAP financial measures to be helpful in understanding Uniteds 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, Uniteds 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% for 2018 and 35% for 2017.

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. Management provides these amounts to facilitate the understanding of as well as to assess the quality and composition of Uniteds 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 two measures, along with others, are used by management to analyze capital adequacy.

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 Uniteds 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

This press release contains certain forward-looking statements, including certain plans, expectations, goals and projections, which are subject to numerous assumptions, risks and uncertainties. Actual results could differ materially from those contained in or implied by such statements for a variety of factors including: changes in economic conditions; movements in interest rates; competitive pressures on product pricing and services; success and timing of business strategies; the nature and extent of governmental actions and reforms; and rapidly changing technology and evolving banking industry standards.

UNITED BANKSHARES, INC. AND SUBSIDIARIES

FINANCIAL SUMMARY

(In Thousands Except for Per Share Data)

Three Months EndedNine Months Ended

September 30 2018

September 30 2017

September 30 2018

September 30 2017

EARNINGS SUMMARY:
Interest income$185,030$171,583$530,215$447,288
Interest expense36,25521,30788,27553,147
Net interest income148,775150,276441,940394,141
Provision for loan losses4,8087,27916,19021,429
Noninterest income31,68638,22998,88598,881
Noninterest expenses93,31596,652277,177271,631
Income before income taxes82,33884,574247,458199,962
Income taxes17,92627,83655,06667,356
Net income$64,412$56,738$192,392$132,606
PER COMMON SHARE:
Net income:
Basic$0.62$0.54$1.84$1.39
Diluted0.620.541.831.39
Cash dividends$0.34$0.331.020.99
Book value31.3231.09
Closing market price$36.35$37.15
Common shares outstanding:
Actual at period end, net of treasury shares103,805,836104,983,126
Weighted average – basic103,617,590104,760,153104,382,09495,040,664
Weighted average – diluted103,933,959105,068,122104,679,87695,450,626
FINANCIAL RATIOS:
Return on average assets1.34%1.19%1.37%1.03%
Return on average shareholders equity7.83%6.89%7.86%6.22%
Average equity to average assets17.13%17.25%17.43%16.58%
Net interest margin3.56%3.65%3.61%3.52%

September 30 2018

September 30 2017

December 31 2017

June 30 2018

PERIOD END BALANCES:
Assets$19,187,643$19,129,978$19,058,959$19,207,603
Earning assets16,872,38416,751,64316,741,81916,852,952
Loans, net of unearned income13,276,74013,140,46813,011,42113,516,629
Loans held for sale234,196315,031265,955285,194
Investment securities2,375,5121,836,7252,071,6452,266,303
Total deposits14,091,17213,875,29713,830,59113,830,766
Shareholders equity3,251,1283,263,8433,240,5303,242,565
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 EndedYear to Date
SeptemberSeptemberJuneMarchSeptemberSeptember
201820172018201820182017
Interest & Loan Fees Income (GAAP)$185,030$ 171,583$ 178,000$167,185$530,215$447,288
Tax equivalent adjustment1,0492,0921,1151,1043,2686,168
Interest & Fees Income (FTE) (non-GAAP)186,079173,675179,115168,289533,483453,456
Interest Expense36,25521,30728,87823,14288,27553,147
Net Interest Income (FTE) (non-GAAP)149,824152,368150,237145,147445,208400,309
Provision for Loan Losses4,8087,2796,2045,17816,19021,429
Non-Interest Income:
Fees from trust services3,3502,9723,1043,0919,5458,865
Fees from brokerage services2,7872,0801,9532,2246,9645,818
Fees from deposit services8,6738,7448,4208,23025,32324,978
Bankcard fees and merchant discounts1,5491,3321,4791,3564,3843,432
Other charges, commissions, and fees5325355995091,6401,533
Income from bank-owned life insurance1,2511,4031,2711,2543,7763,878
Income from mortgage banking activities13,27720,38518,69214,57046,53943,597
Net (losses) gains on investment securities(152)467(55)(485)(692)5,154
Other non-interest revenue4193115444431,4061,626
Total Non-Interest Income31,68638,22936,00731,19298,88598,881
Non-Interest Expense:
Employee compensation41,31244,88243,12040,836125,268124,945
Employee benefits8,6459,0049,2989,57127,51425,667
Net occupancy9,2739,3649,0769,42727,77630,061
Data processing6,0685,5975,8175,85017,73514,971
Amortization of intangibles2,0092,2402,0102,0106,0295,381
OREO expense9212,7135569462,4234,651
FDIC expense3,5301,5402,8421,8488,2205,062
Other expenses21,55721,31220,69119,96462,21260,893
Total Non-Interest Expense93,31596,65293,41090,452277,177271,631
Income Before Income Taxes (FTE) (non-GAAP)83,38786,66686,63080,709250,726206,130
Tax equivalent adjustment1,0492,0921,1151,1043,2686,168
Income Before Income Taxes (GAAP)82,33884,57485,51579,605247,458199,962
Taxes17,92627,83619,24117,89955,06667,356
Net Income$64,412$ 56,738$ 66,274$61,706$192,392$132,606
MEMO: Effective Tax Rate21.77%32.91%22.50%22.48%22.25%33.68%
UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

Consolidated Balance Sheets

September 30September 30
20182017September 30December 31September 30
Q-T-D AverageQ-T-D Average201820172017
Cash & Cash Equivalents$1,105,876$1,443,491$1,254,686$1,666,167$1,747,037
Securities Available for Sale2,087,1331,612,3352,178,5671,888,7561,649,634
Held to Maturity Securities20,36820,35320,35120,42820,335
Equity Securities9,73409,84500
Other Investment Securities167,294159,945166,749162,461166,756
Total Securities2,284,5291,792,6332,375,5122,071,6451,836,725
Total Cash and Securities3,390,4053,236,1243,630,1983,737,8123,583,762
Loans held for sale257,008294,971234,196265,955315,031
Commercial Loans9,628,90410,111,2139,451,4969,822,0279,943,254
Mortgage Loans2,821,7222,488,6712,870,8402,443,7802,475,092
Consumer Loans931,226730,798964,375761,530738,508
Gross Loans13,381,85213,330,68213,286,71113,027,33713,156,854
Unearned income(10,928)(17,720)(9,971)(15,916)(16,386)
Loans, net of unearned income13,370,92413,312,96213,276,74013,011,42113,140,468
Allowance for Loan Losses(77,103)(73,031)(76,941)(76,627)(74,926)
Goodwill1,478,0141,484,4881,478,0141,478,3801,487,607
Other Intangibles40,10552,64938,95744,98647,526
Total Intangibles1,518,1191,537,1371,516,9711,523,3661,535,133
Other Real Estate Owned19,69427,88918,78624,34826,826
Other Assets568,642591,733587,693572,684603,684
Total Assets$19,047,689$18,927,785$19,187,643$19,058,959$19,129,978

MEMO: Interest-earning Assets

$16,746,772$16,574,277$16,872,384$16,741,819$16,751,643
Interest-bearing Deposits$9,588,327$9,837,967$9,620,357$9,535,904$9,741,278
Noninterest-bearing Deposits4,338,3094,036,6534,470,8154,294,6874,134,019
Total Deposits13,926,63613,874,62014,091,17213,830,59113,875,297
Short-term Borrowings212,566325,631379,508477,587492,036
Long-term Borrowings1,543,0041,364,4171,319,3711,363,9771,364,246
Total Borrowings1,755,5701,690,0481,698,8791,841,5641,856,282
Other Liabilities102,53497,575146,464146,274134,556
Total Liabilities15,784,74015,662,24315,936,51515,818,42915,866,135
Preferred Equity
Common Equity3,262,9493,265,5423,251,1283,240,5303,263,843
Total Shareholders’ Equity3,262,9493,265,5423,251,1283,240,5303,263,843
Total Liabilities & Equity$19,047,689$18,927,785$19,187,643$19,058,959$19,129,978

MEMO: Interest-bearing Liabilities

$11,343,897$11,528,015$11,319,236$11,377,468$11,597,560

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

Three Months EndedYear to Date
SeptemberSeptemberJuneMarchSeptemberSeptember
201820172018201820182017

Quarterly/Year-to-Date Share Data:

Earnings Per Share:

Basic$0.62$ 0.54$0.63$0.59$1.84$1.39
Diluted$0.62$ 0.54$0.63$0.59$1.83$1.39

Common Dividend Declared Per Share:

$0.34$ 0.33$0.34$0.34$1.02$0.99
High Common Stock Price$39.95$ 40.45$38.80$38.55$39.95$47.30
Low Common Stock Price$34.75$ 31.70$33.40$33.60$33.40$31.70

Average Shares Outstanding (Net of Treasury Stock):

Basic103,617,590104,760,153104,682,910104,859,427104,382,09495,040,664
Diluted103,933,959105,068,122104,952,788105,162,858104,679,87695,450,626

Memorandum Items:

Common Dividends$35,303$ 34,642$35,584$35,748$106,635$96,040
Dividend Payout Ratio54.81%61.06%53.69%57.93%55.43%72.43%
SeptemberSeptemberJune 30March 31
2018201720182018

EOP Share Data:

Book Value Per Share$31.32$31.09$31.12$30.92
Tangible Book Value Per Share (non-GAAP) (1)$16.71$16.47$16.54$16.45
52-week High Common Stock Price$39.95$49.35$40.45$42.60
Date08/21/1812/12/1607/03/1704/03/17
52-week Low Common Stock Price$33.40$31.70$31.70$31.70
Date05/01/1809/07/1709/07/1709/07/17

EOP Shares Outstanding (Net of Treasury Stock):

103,805,836104,983,126104,203,542105,141,170

Memorandum Items:

EOP Employees (full-time equivalent)2,2902,4512,3002,341

Note:

(1) Tangible Book Value Per Share:
Total Shareholders’ Equity (GAAP)$3,251,128$3,263,843$3,242,565$3,251,313
Less: Total Intangibles(1,516,971)(1,535,133)(1,518,980)(1,521,556)
Tangible Equity (non-GAAP)$1,734,157$1,728,710$1,723,585$1,729,757
· EOP Shares Outstanding (Net of Treasury Stock)103,805,836104,983,126104,203,542105,141,170
Tangible Book Value Per Share (non-GAAP)$16.71$16.47$16.54$16.45

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

Three Months EndedYear to Date
SeptemberSeptemberJuneMarchSeptemberSeptember
201820172018201820182017

Selected Yields and Net Interest Margin:

Loans4.83%4.61%4.76%4.63%4.74%4.46%
Investment Securities2.74%2.61%2.73%2.52%2.66%2.64%
Money Market Investments/FFS2.39%1.55%2.14%2.04%2.19%1.18%
Average Earning Assets Yield4.42%4.16%4.37%4.19%4.33%3.99%
Interest-bearing Deposits1.09%0.57%0.83%0.68%0.87%0.52%
Short-term Borrowings1.15%0.52%0.89%0.60%0.85%0.52%
Long-term Borrowings2.38%1.93%2.26%2.12%2.26%1.74%
Average Liability Costs1.27%0.73%1.05%0.85%1.06%0.67%
Net Interest Spread3.15%3.43%3.32%3.34%3.27%3.32%
Net Interest Margin3.56%3.65%3.67%3.61%3.61%3.52%

Selected Performance Ratios:

Return on Average Common Equity7.83%6.89%8.11%7.65%7.86%6.22%
Return on Average Assets1.34%1.19%1.42%1.35%1.37%1.03%
Efficiency Ratio51.71%51.27%50.46%51.62%51.25%55.10%
SeptemberSeptemberJuneMarchDecember
20182017201820182017

Selected Financial Ratios:

Loan / Deposit Ratio94.22%94.70%97.73%95.15%94.08%
Allowance for Loan Losses/ Loans, Net of Unearned Income0.58%0.57%0.57%0.59%0.59%
Allowance for Credit Losses (1)/ Loans, Net of Unearned Income0.59%0.58%0.58%0.60%0.59%
Nonaccrual Loans / Loans, Net of Unearned Income0.50%0.76%0.55%0.77%0.84%
90-Day Past Due Loans/ Loans, Net of Unearned Income0.12%0.17%0.12%0.07%0.08%
Non-performing Loans/ Loans, Net of Unearned Income1.10%1.28%1.12%1.21%1.30%
Non-performing Assets/ Total Assets0.86%1.02%0.90%0.97%1.01%
Primary Capital Ratio17.28%17.39%17.21%17.80%17.34%
Shareholders’ Equity Ratio16.94%17.06%16.88%17.46%17.00%
Price / Book Ratio

1.16

x

1.19

x

1.17

x

1.14

x

1.13

x

Price / Earnings Ratio14.66

x

17.20

x

14.41

x

15.02

x

22.59

x

Note:

(1) 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 EndedYear to Date
SeptemberSeptemberJuneMarchSeptemberSeptember
201820172018201820182017

Mortgage Banking Data “ George Mason:

Applications$854,000$1,064,000$1,195,000$1,149,000$3,198,000$2,431,000
Loans originated641,141858,625874,493573,7322,089,3661,644,943
Loans sold$692,270$887,711$784,727$616,951$2,093,948$1,597,808
Purchase money % of loans closed88%81%83%75%82%84%
Realized gain on sales and fees as a % of loans sold2.85%2.75%2.62%2.62%2.70%2.84%
Net interest income$388$(36)$264$376$ 1,028$54
Other income16,47819,93623,46814,88354,82942,329
Other expense17,95724,03621,22518,38457,56642,744
Income taxes(245)(1,332)564(703)(384)(39)
Net income$(846)$(2,804)$1,943$(2,422)$ (1,325)$(322)
SeptemberSeptemberDecemberJuneMarch

Period End Mortgage Banking Data “ George Mason:

20182017201720182018
Locked pipeline$170,545$245,986$157,130$221,317$206,883
SeptemberSeptemberDecemberJuneMarch

Asset Quality Data:

20182017201720182018
EOP Non-Accrual Loans$66,554$100,016$108,803$74,114$100,172
EOP 90-Day Past Due Loans15,94922,2499,80316,4229,165
EOP Restructured Loans (1)63,62646,13250,12960,38448,271
Total EOP Non-performing Loans$146,129$168,397$168,735$150,920$157,608
EOP Other Real Estate Owned18,78626,82624,34821,92622,778
Total EOP Non-performing Assets$164,915$195,223$193,083$172,846$180,386
Three Months EndedYear to Date
SeptemberSeptember

    June    

   March   

SeptemberSeptember
Allowance for Loan Losses:201820172018201820182017
Beginning Balance$77,135$72,983$76,653$76,627$76,627$72,771
Provision for Loan Losses4,8087,2796,2045,17816,19021,429
81,94380,26282,85781,80592,81794,200
Gross Charge-offs(7,044)(6,357)(7,712)(5,858)(20,614)(23,564)
Recoveries2,0421,021

 1,990

 706

4,7384,290
Net Charge-offs(5,002)(5,336)(5,722)(5,152)(15,876)(19,274)
Ending Balance

$

76,941

$

74,926

$77,135$76,653

$

76,941

$

74,926

Reserve for lending-related commitments1,144804927

755

1,144804
Allowance for Credit Losses (2)$78,085$75,730$78,062$77,408$78,085$75,730

Notes:

(1) Restructured loans with an aggregate balance of $50,974, $29,717, $46,652, $33,592 and $30,868 at September 30, 2018, September 30, 2017, June 30, 2018, March 31, 2018 and December 31, 2017, respectively, were on nonaccrual status, but are not included in EOP Non-Accrual Loans above.
(2) Includes allowance for loan losses and reserve for lending-related commitments.

United Bankshares, Inc.
W. Mark Tatterson, 800-445-1347, ext. 8716
Chief
Financial Officer