8-K
UNITED BANKSHARES INC/WV (UBSI)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
October 24, 2024
United Bankshares, Inc.
(Exact name of registrant as specified in its charter)
| West Virginia | No. 002-86947 | 55-0641179 |
|---|---|---|
| (State or other jurisdiction of<br> <br>incorporation or organization) | (Commission<br> <br>File Number) | (I.R.S. Employer<br> <br>Identification No.) |
300 United Center
500 Virginia Street, East
Charleston, West Virginia 25301
(Address of Principal Executive Offices)
(304) 424-8800
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br> <br>Symbol(s) | Name of each exchange<br> <br>on which registered |
|---|---|---|
| Common Stock, par value $2.50 per share | UBSI | NASDAQ Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02. | Results of Operations and Financial Condition |
|---|
On October 24, 2024 United Bankshares, Inc. (“United”) announced its financial results for the third quarter and first nine months of 2024. A copy of the press release is attached as Exhibit 99.1 to this report. The press release is being furnished under Item 2.02 of this Form 8-K.
| Item 9.01. | Financial Statements and Exhibits |
|---|
(c) The following exhibits are being furnished herewith:
| 99.1 | Press Release, dated October 24, 2024, issued by United Bankshares, Inc. |
|---|---|
| 99.2 | Slide presentation of financial information for the third quarter of 2024 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| UNITED BANKSHARES, INC. | ||
|---|---|---|
| Date: October 24, 2024 | By: | /s/ W. Mark Tatterson |
| W. Mark Tatterson, Executive Vice President and<br>Chief Financial Officer |
EX-99.1
Exhibit 99.1
News Release
| For Immediate Release | Contact: W. Mark Tatterson |
|---|---|
| October 24, 2024 | Chief Financial Officer |
| (800) 445-1347 ext. 8716 |
United Bankshares, Inc. Announces Earnings
for the Third Quarter and First Nine Months of 2024
WASHINGTON, D.C. and CHARLESTON, WV-- United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today reported earnings for the third quarter of 2024 of $95.3 million, or $0.70 per diluted share. Third quarter of 2024 results produced annualized returns on average assets, average equity, and average tangible equity, a non-GAAP measure, of 1.28%, 7.72%, and 12.59%, respectively.
“We are excited to announce this quarter’s earnings,” stated Richard M. Adams, Jr., United’s Chief Executive Officer. “It was another successful quarter for UBSI, and we continue to perform at a high level. Profitability metrics stayed strong, growth trends continued upward, and expenses were well-controlled. In addition, asset quality, liquidity, and capital levels remain a source of strength.”
United previously announced during the second quarter of 2024 that it entered into a definitive merger agreement with Piedmont Bancorp, Inc. (“Piedmont”). The combined organization will have approximately $32 billion in assets and a network of over 240 locations across eight states and Washington, D.C., in some of the most desirable banking markets in the nation. The merger is expected to close late in the fourth quarter of 2024 or early in the first quarter of 2025, subject to satisfaction of customary closing conditions.
Earnings for the second quarter of 2024 were $96.5 million, or $0.71 per diluted share, and annualized returns on average assets, average equity, and average tangible equity were 1.32%, 7.99%, and 13.12%, respectively. Earnings for the third quarter of 2023 were $96.2 million, or $0.71 per diluted share, and annualized returns on average assets, average equity, and average tangible equity were 1.31%, 8.14%, and 13.71%, respectively.
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United Bankshares, Inc. Announces…
October 24, 2024
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Third quarter of 2024 compared to the second quarter of 2024
Net interest income for the third quarter of 2024 was $230.3 million, an increase of $4.5 million, or 2%, from the second quarter of 2024. Tax-equivalent net interest income, a non-GAAP measure which adjusts for the tax-favored status of income from certain loans and investments, of $231.1 million for the third quarter of 2024 also increased $4.5 million, or 2%, from the second quarter of 2024. The increase in net interest income and tax-equivalent net interest income was driven by an increase in average short-term investments, a higher yield on average net loans and loans held for sale, and a decrease in average long-term borrowings partially offset by an increase in average interest-bearing deposits as well as a higher average rate paid on deposits. Average short-term investments increased $457.0 million, or 49%, from the second quarter of 2024 primarily driven by cash received from deposit growth. The yield on average net loans and loans held for sale increased 6 basis points to 6.20% for the third quarter of 2024. As previously disclosed, the second quarter of 2024 included a $654 thousand interest recovery from a commercial real estate nonaccrual loan payoff. Average long-term borrowings decreased $541.8 million, or 42%, from the second quarter of 2024. Average interest-bearing deposits increased $659.2 million, or 4%, from the second quarter of 2024. The yield on average interest-bearing deposits increased 10 basis points to 3.28% for the third quarter of 2024. The net interest margin of 3.52% for the third quarter of 2024 was an increase of 2 basis points from the net interest margin of 3.50% for the second quarter of 2024.
The provision for credit losses was $6.9 million for the third quarter of 2024 as compared to $5.8 million for the second quarter of 2024.
Noninterest income for the third quarter of 2024 was $31.9 million, an increase of $1.7 million, or 6%, from the second quarter of 2024. The increase in noninterest income was driven by an increase in income from mortgage banking activities of $643 thousand as well as increases in several additional categories of noninterest income, none of which were significant. The increase in income from mortgage banking activities was primarily due to higher mortgage loan sale volume and a higher quarter-end valuation of mortgage loans held for sale. Additionally, in comparison to the second quarter of 2024, an increase in mortgage loan servicing income was mostly offset by higher net losses on investment securities. Mortgage loan servicing income was $7.4 million for the third quarter of 2024, an increase of $6.6 million from the second quarter of 2024. During the third quarter of 2024, United sold its remaining mortgage servicing rights (“MSRs”) with an aggregate unpaid principal balance of $1.1 billion at a gain of $7.1 million. Net losses on investment securities were $6.7 million for the third quarter of 2024 compared to $218 thousand for the second quarter of 2024. During the third quarter of 2024, United sold $196.7 million of available for sale (“AFS”) investment securities at a loss of $6.9 million. Net losses on investment securities for the second quarter of 2024 included a $6.9 million gain on the VISA share exchange and a $6.8 million loss on the sale of $102.7 million of AFS investment securities.
Noninterest expense for the third quarter of 2024 of $135.3 million was flat from the second quarter of 2024, increasing $565 thousand, or less than 1%. A $1.5 million increase in other noninterest expense from the second quarter of 2024, driven by higher amounts of certain general operating expenses, was mostly offset by smaller decreases in several other categories of noninterest expense. Within other noninterest expense, merger-related expenses for the third quarter of 2024 were $332 thousand compared to $1.3 million for the second quarter of 2024.
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United Bankshares, Inc. Announces…
October 24, 2024
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For the third quarter of 2024, income tax expense was $24.6 million as compared to $18.9 million for the second quarter of 2024. The increase was driven by higher pre-tax earnings and the impact of discrete tax benefits recognized in the second quarter of 2024. United’s effective tax rate was 20.6% and 16.4% for the third quarter of 2024 and second quarter of 2024, respectively.
Third quarter of 2024 compared to the thirdquarter of 2023
Earnings for the third quarter of 2024 were $95.3 million, or $0.70 per diluted share, as compared to earnings of $96.2 million, or $0.71 per diluted share, for the third quarter of 2023.
Net interest income for the third quarter of 2024 of $230.3 million was flat from the third quarter of 2023, increasing $1.8 million, or less than 1%. Tax-equivalent net interest income for the third quarter of 2024 was also flat from the third quarter of 2023, increasing $1.8 million, or less than 1%. The slight increase in net interest income and tax-equivalent net interest income was primarily due to a higher yield on average net loans and loans held for sale, a decrease in average long-term borrowings, organic loan growth, and an increase in average short-term investments. This increase in net interest income and tax-equivalent net interest income was partially offset by the impact of deposit rate repricing and an increase in average interest-bearing deposits. The yield on average earning assets increased 33 basis points from the third quarter of 2023 to 5.85% driven by an increase in the yield on average net loans and loans held for sale of 28 basis points. Average long-term borrowings decreased $842.2 million, or 53%, from the third quarter of 2023. Average earning assets for the third quarter of 2024 increased $363.7 million, or 1%, from the third quarter of 2023 due to a $610.4 million increase in average net loans and loans held for sale and a $535.2 million increase in average short-term investments partially offset by a $781.9 million decrease in average investment securities. The yield on average interest-bearing deposits increased 58 basis points from the third quarter of 2023. Average interest-bearing deposits increased $1.4 billion, or 9%, from the third quarter of 2023. The net interest margin for the third quarter of 2024 and 2023 was 3.52% and 3.54%, respectively.
The provision for credit losses was $6.9 million for the third quarter of 2024 as compared to $5.9 million for the third quarter of 2023.
Noninterest income for the third quarter of 2024 was $31.9 million, which was a decrease of $1.7 million, or 5%, from the third quarter of 2023. Income from mortgage banking activities decreased $3.0 million from the third quarter of 2023 mainly due to lower mortgage loan origination and sale volume. This decrease in income from mortgage banking activities was partially offset by increases in several categories of noninterest income, none of which were significant. Additionally, in comparison to the third quarter of 2023, an increase in mortgage loan servicing income was mostly offset by higher net losses on investment securities. Mortgage loan servicing income was $7.4 million for the third quarter of 2024, an increase of $6.5 million from the third quarter of 2023 driven by the aforementioned $7.1 million gain on the sale of MSRs in the third quarter of 2024. Net losses on investment securities were $6.7 million for the third quarter of 2024 as compared to $181 thousand for the third quarter of 2023 driven by the aforementioned $6.9 million loss on sale of AFS investment securities in the third quarter of 2024.
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United Bankshares, Inc. Announces…
October 24, 2024
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Noninterest expense for the third quarter of 2024 was flat from the third quarter of 2023, increasing $109 thousand, or less than 1%. A $1.3 million increase in other noninterest expense from the third quarter of 2023, driven by higher amounts of certain general operating expenses, was mostly offset by smaller decreases in several other categories of noninterest expense.
Income tax expense for the third quarter of 2024 was flat from the third quarter of 2023, decreasing $130 thousand, or less than 1%, primarily due to slightly lower pre-tax earnings partially offset by a slightly higher effective tax rate. United’s effective tax rate was 20.6% and 20.5% for the third quarter of 2024 and third quarter of 2023, respectively.
First nine months of 2024 compared to the first nine months of 2023
Earnings for the first nine months of 2024 were $278.6 million, or $2.06 per diluted share, and annualized returns on average assets, average equity, and average tangible equity were 1.26%, 7.65%, and 12.57%, respectively. Earnings for the first nine months of 2023 were $286.9 million, or $2.12 per diluted share, and annualized returns on average assets, average equity, and average tangible equity were 1.31%, 8.27%, and 14.03%, respectively.
Net interest income for the first nine months of 2024 decreased $11.8 million, or 2%, from the first nine months of 2023. Tax-equivalent net interest income for the first nine months of 2024 decreased $12.4 million, or 2%, from the first nine months of 2023. The decrease in net interest income and tax-equivalent net interest income was primarily due to higher interest expense driven by deposit rate repricing, an increase in average interest-bearing deposits, and a decrease in acquired loan accretion income. These decreases were partially offset by a higher yield on average net loans and loans held for sale, organic loan growth, and a decrease in average long-term borrowings. The yield on average interest-bearing deposits increased 88 basis points from the first nine months of 2023. Average interest-bearing deposits increased $1.4 billion from the first nine months of 2023. Acquired loan accretion income for the first nine months of 2024 of $7.3 million was a decrease of $1.2 million from the first nine months of 2023. The yield on average earning assets increased 46 basis points from the first nine months of 2023 to 5.78% driven by an increase in the yield on average net loans and loans held for sale of 39 basis points. Average net loans and loans held for sale increased $773.3 million from the first nine months of 2023. Average long-term borrowings decreased $924.2 million from the first nine months of 2023. Additionally, average investment securities decreased $857.4 million, or 19%, from the first nine months of 2023 while the yield on average investment securities increased 36 basis points from the first nine months of 2023. The net interest margin for the first nine months of 2024 and 2023 was 3.49% and 3.56%, respectively.
The provision for credit losses was $18.5 million for the first nine months 2024 as compared to $24.3 million for the first nine months of 2023.
Noninterest income for the first nine months of 2024 was $94.4 million, which was a decrease of $7.2 million, or 7%, from the first nine months of 2023. Income from mortgage banking activities decreased $8.1 million from the first nine months of 2023 mainly due to lower mortgage loan origination and sale volume. Mortgage loan servicing income for the first nine months of 2024 of $9.0 million included a $7.1 million gain on the sale of MSRs while mortgage loan servicing income for the first nine months of 2023 of $13.0 million included $8.3 million in gains on sales of MSRs with the remainder of the decrease due to lower serviced loan balances. Fees from brokerage services increased $2.7 million from the first nine months of 2023 primarily due to higher
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United Bankshares, Inc. Announces…
October 24, 2024
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volume. Net losses on investment securities of $7.0 million for the first nine months of 2024 included $13.7 million in losses on sales of AFS investment securities partially offset by a $6.9 million gain on the VISA share exchange. Net losses on investment securities of $7.9 million for the first nine months of 2023 were driven by a $7.2 million loss on sale of AFS investment securities during the second quarter of 2023.
Noninterest expense for the first nine months of 2024 was $410.9 million, an increase of $2.9 million, or 1%, from the first nine months of 2023 driven by increases in other noninterest expense of $4.3 million, employee compensation of $3.3 million, and FDIC insurance expense of $2.1 million partially offset by decreases in the expense for the reserve for unfunded loan commitments of $4.3 million and mortgage loan servicing expense of $2.2 million. The increase in employee compensation was driven by higher employee incentives, base salaries, and employee severance associated with the previously announced mortgage delivery channel consolidation partially offset by lower employee commissions related to mortgage banking production. The increase in other noninterest expense was primarily driven by a $2.2 million increase in tax credit amortization, $1.6 million in merger-related expenses, and higher amounts of certain general operating expenses. The increase in FDIC insurance expense was driven by $1.8 million of expense recognized in the first quarter of 2024 for the FDIC special assessment. The decrease in the expense for the reserve for unfunded loan commitments was driven by a decrease in the outstanding balance of loan commitments. The decrease in mortgage loan servicing expense was driven by the sales of MSRs.
For the first nine months of 2024, income tax expense was $64.9 million as compared to $72.7 million for the first nine months of 2023 primarily due to lower pre-tax earnings and the impact of discrete tax benefits recognized in the second quarter of 2024. United’s effective tax rate was 18.9% for the first nine months of 2024 and 20.2% for the first nine months of 2023.
Credit Quality
United’s asset quality continues to be sound. At September 30, 2024, non-performing loans (“NPLs”) were $65.2 million, or 0.30% of loans & leases, net of unearned income. Total non-performing assets (“NPAs”) were $65.4 million, including other real estate owned (“OREO”) of $169 thousand, or 0.22% of total assets at September 30, 2024. At June 30, 2024, NPLs were $65.3 million, or 0.30% of loans & leases, net of unearned income. Total NPAs were $67.5 million, including OREO of $2.2 million, or 0.23% of total assets at June 30, 2024. At December 31, 2023, NPLs were $45.5 million, or 0.21% of loans & leases, net of unearned income. Total NPAs were $48.1 million, including OREO of $2.6 million, or 0.16% of total assets at December 31, 2023. As previously disclosed in the first quarter of 2024, the increase in NPLs and NPAs from year-end was primarily driven by one commercial & industrial loan relationship. NPLs decreased $9.1 million from $74.4 million at March 31, 2024 primarily due to partial paydowns of the aforementioned commercial & industrial loan relationship.
As of September 30, 2024, the allowance for loan & lease losses was $270.8 million, or 1.25% of loans & leases, net of unearned income. At June 30, 2024 the allowance for loan & lease losses was $267.4 million, or 1.24% of loans & leases, net of unearned income. At December 31, 2023, the allowance for loan & lease losses was $259.2 million, or 1.21% of loans & leases, net of unearned income.
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United Bankshares, Inc. Announces…
October 24, 2024
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Net charge-offs were $3.6 million, or 0.07% on an annualized basis as a percentage of average loans & leases, net of unearned income for the third quarter of 2024. Net charge-offs were $1.3 million, or 0.02% on an annualized basis as a percentage of average loans & leases, net of unearned income for the second quarter of 2024. Net charge-offs were $1.8 million, or 0.03% on an annualized basis as a percentage of average loans & leases, net of unearned income for the third quarter of 2023. Net charge-offs were $6.9 million for the first nine months of 2024 compared to $4.1 million for the first nine months of 2023. Annualized net charge-offs as a percentage of average loans & leases, net of unearned income were 0.04% and 0.03% for the first nine months of 2024 and 2023, respectively.
Capital
United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 16.2% at September 30, 2024, while estimated Common Equity Tier 1 capital, Tier 1 capital, and leverage ratios are 13.8%, 13.8%, and 11.7%, respectively. The September 30, 2024 ratios reflect United’s election of a five-year transition provision, allowed by the Federal Reserve Board and other federal banking agencies in response to the COVID-19 pandemic, to delay for two years the full impact of CECL on regulatory capital, followed by a three-year transition period. The regulatory requirements for a well-capitalized financial institution are a risk-based capital ratio of 10.0%, a Common Equity Tier 1 capital ratio of 6.5%, a Tier 1 capital ratio of 8.0%, and a leverage ratio of 5.0%. United did not repurchase any shares of its common stock during 2024 or 2023.
About United Bankshares, Inc.
As of September 30, 2024, United had consolidated assets of approximately $30 billion and is the 41^st^ largest banking company in the U.S. based on market capitalization. United is the parent company of United Bank, which comprises more than 225 offices located throughout Washington, D.C., Virginia, West Virginia, Maryland, North Carolina, South Carolina, Ohio, Pennsylvania, and Georgia. United’s stock is traded on the NASDAQ Global Select Market under the quotation symbol “UBSI”.
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United Bankshares, Inc. Announces…
October 24, 2024
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Cautionary Statements
The Company is required under generally accepted accounting principles to evaluate subsequent events through the filing of itsSeptember 30, 2024 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 estimatesmade as of September 30, 2024 and will adjust amounts preliminarily reported, if necessary.
Use ofnon-GAAP Financial Measures
This press release contains certain financial measures thatare not recognized under U.S. generally accepted accounting principles (“GAAP”). Generally, United has presented these “non-GAAP” financial measures because it believes that these measuresprovide 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 howUnited’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 ofcompanies in the banking industry.
Specifically, this press release contains certain references to financial measures identifiedas tax-equivalent (FTE) net interest income, average tangible equity, return on average tangible equity, and tangible book value per share. Management believes thesenon-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-GAAPmeasure, 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-exemptsources. 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 federallynontaxable loans and investment securities using the statutory federal income tax rate of 21%.
Tangible equity is calculated asGAAP total shareholders’ equity minus total intangible assets. Tangible equity can thus be considered the most conservative valuation of the company. Tangible equity is also presented on a per common share basis and considering net income, areturn 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 frommerger and acquisition activity, the “permanent” items of equity are presented. These measures, along with others, are used by management to analyze capital adequacy and performance.
Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well asreconciliation 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 thesenon-GAAP financial measures might not be comparable to similarly titled measures at other companies. These non-GAAP financial measures should not be considered asubstitute for GAAP basis measures and United strongly encourages a review of its condensed consolidated financial statements in their entirety.
Forward-Looking Statements
Inthis 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 thePrivate 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 theofficers of the Company. Forward-looking statements can be identified by the use of the words “expect,” “may,” “could,” “intend,” “project,” “estimate,” “believe,”“anticipate,” and other words of similar meaning. Such forward-looking statements are based on assumptions and estimates, which although believed to be reasonable, may turn out to be incorrect. Therefore, undue reliance should not beplaced 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.” Thefollowing factors, among others, could cause the actual results of United’s operations to differ materially from its expectations: uncertainty in U.S. fiscal and monetary policies, including the interest rate policies of the Federal ReserveBoard; volatility and disruptions in global capital and credit markets, interest rate, securities market and monetary supply fluctuations; increasing rates of inflation and slower growth rates; the nature, extent, timing, and results of governmentalactions, examinations, reviews, reforms, regulations, and interpretations, including those involving the Federal Reserve, FDIC, and CFPB; the effect of changes in the level of checking or savings account deposits on United’s funding costs andnet interest margin; future provisions for credit losses on loans and debt securities; changes in nonperforming assets; risks relating to the merger with Piedmont, including the successful integration of operations of Piedmont; competition; changesin legislation or regulatory requirements; and the impact of natural disasters, extreme weather events, military conflict (including the Russia/Ukraine conflict, the conflict in Israel and surrounding areas, the possible expansion of such conflictsand potential geopolitical consequences), terrorism or other geopolitical events. For more information about factors that could cause actual results to differ materially from United’s expectations, refer to its reports filed with the Securitiesand Exchange Commission, including the discussion under “Risk Factors” in the Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and ExchangeCommission 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 resultof 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.
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UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(InThousands Except for Per Share Data)
| Three Months Ended | Nine Months Ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EARNINGS SUMMARY: | September<br>2024 | September<br>2023 | June<br>2024 | September<br>2024 | September<br>2023 | ||||||||||
| Interest income | $ | 382,723 | $ | 356,910 | $ | 374,184 | $ | 1,126,087 | $ | 1,032,145 | |||||
| Interest expense | 152,467 | 128,457 | 148,469 | 447,627 | 341,911 | ||||||||||
| Net interest income | 230,256 | 228,453 | 225,715 | 678,460 | 690,234 | ||||||||||
| Provision for credit losses | 6,943 | 5,948 | 5,779 | 18,462 | 24,278 | ||||||||||
| Noninterest income | 31,942 | 33,661 | 30,223 | 94,377 | 101,583 | ||||||||||
| Noninterest expense | 135,339 | 135,230 | 134,774 | 410,855 | 407,937 | ||||||||||
| Income before income taxes | 119,916 | 120,936 | 115,385 | 343,520 | 359,602 | ||||||||||
| Income taxes | 24,649 | 24,779 | 18,878 | 64,932 | 72,679 | ||||||||||
| Net income | $ | 95,267 | $ | 96,157 | $ | 96,507 | $ | 278,588 | $ | 286,923 | |||||
| PER COMMON SHARE: | |||||||||||||||
| Net income: | |||||||||||||||
| Basic | $ | 0.70 | $ | 0.71 | $ | 0.71 | $ | 2.06 | $ | 2.13 | |||||
| Diluted | 0.70 | 0.71 | 0.71 | 2.06 | 2.12 | ||||||||||
| Cash dividends | $ | 0.37 | $ | 0.36 | 0.37 | 1.11 | 1.08 | ||||||||
| Book value | 35.92 | 36.74 | 34.45 | ||||||||||||
| Closing market price | $ | 32.44 | $ | 37.10 | $ | 27.59 | |||||||||
| Common shares outstanding: | |||||||||||||||
| Actual at period end, net of treasury shares | 135,195,704 | 135,220,770 | 134,933,015 | ||||||||||||
| Weighted average-basic | 135,158,476 | 134,685,041 | 135,137,901 | 134,912,625 | 134,493,059 | ||||||||||
| Weighted average-diluted | 135,504,911 | 134,887,776 | 135,314,785 | 135,143,028 | 134,733,055 | ||||||||||
| FINANCIAL RATIOS: | |||||||||||||||
| Return on average assets | 1.28 | % | 1.31 | % | 1.32 | % | 1.26 | % | 1.31 | % | |||||
| Return on average shareholders’ equity | 7.72 | % | 8.14 | % | 7.99 | % | 7.65 | % | 8.27 | % | |||||
| Return on average tangible equity (non-GAAP)^(1)^ | 12.59 | % | 13.71 | % | 13.12 | % | 12.57 | % | 14.03 | % | |||||
| Average equity to average assets | 16.64 | % | 16.12 | % | 16.54 | % | 16.52 | % | 15.81 | % | |||||
| Net interest margin | 3.52 | % | 3.54 | % | 3.50 | % | 3.49 | % | 3.56 | % | |||||
| PERIOD END BALANCES: | September 30<br>2024 | December 31<br>2023 | September 30<br>2023 | June 30<br>2024 | |||||||||||
| Assets | $ | 29,863,262 | $ | 29,926,482 | $ | 29,224,794 | $ | 29,957,418 | |||||||
| Earning assets | 26,461,342 | 26,623,652 | 25,883,462 | 26,572,087 | |||||||||||
| Loans & leases, net of unearned income | 21,621,968 | 21,359,084 | 21,097,883 | 21,598,727 | |||||||||||
| Loans held for sale | 46,493 | 56,261 | 59,614 | 66,475 | |||||||||||
| Investment securities | 3,538,415 | 4,125,754 | 4,066,299 | 3,650,582 | |||||||||||
| Total deposits | 23,828,345 | 22,819,319 | 22,676,854 | 23,066,440 | |||||||||||
| Shareholders’ equity | 4,967,820 | 4,771,240 | 4,648,878 | 4,856,633 | |||||||||||
| Note: | (1) See information under the “Selected Financial Ratios” table for a reconciliation of non-GAAP measure. | ||||||||||||||
| --- | --- |
8
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(InThousands Except for Per Share Data)
| Consolidated Statements of Income | Three Months Ended | Nine Months Ended | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September | September | June | March | September | September | |||||||||||||
| 2024 | 2023 | 2024 | 2024 | 2024 | 2023 | |||||||||||||
| Interest & Loan Fees Income (GAAP) | $ | 382,723 | $ | 356,910 | $ | 374,184 | $ | 369,180 | $ | 1,126,087 | $ | 1,032,145 | ||||||
| Tax equivalent adjustment | 828 | 869 | 867 | 872 | 2,567 | 3,148 | ||||||||||||
| Interest & Fees Income (FTE) (non-GAAP) | 383,551 | 357,779 | 375,051 | 370,052 | 1,128,654 | 1,035,293 | ||||||||||||
| Interest Expense | 152,467 | 128,457 | 148,469 | 146,691 | 447,627 | 341,911 | ||||||||||||
| Net Interest Income (FTE) (non-GAAP) | 231,084 | 229,322 | 226,582 | 223,361 | 681,027 | 693,382 | ||||||||||||
| Provision for Credit Losses | 6,943 | 5,948 | 5,779 | 5,740 | 18,462 | 24,278 | ||||||||||||
| Noninterest Income: | ||||||||||||||||||
| Fees from trust services | 4,904 | 4,514 | 4,744 | 4,646 | 14,294 | 13,810 | ||||||||||||
| Fees from brokerage services | 5,073 | 4,433 | 4,959 | 5,267 | 15,299 | 12,551 | ||||||||||||
| Fees from deposit services | 9,413 | 9,282 | 9,326 | 8,971 | 27,710 | 27,969 | ||||||||||||
| Bankcard fees and merchant discounts | 1,775 | 1,676 | 1,355 | 1,873 | 5,003 | 5,090 | ||||||||||||
| Other charges, commissions, and fees | 890 | 850 | 869 | 858 | 2,617 | 2,937 | ||||||||||||
| Income from bank-owned life insurance | 3,032 | 2,562 | 2,549 | 2,418 | 7,999 | 6,475 | ||||||||||||
| Income from mortgage banking activities | 4,544 | 7,556 | 3,901 | 5,298 | 13,743 | 21,847 | ||||||||||||
| Mortgage loan servicing income | 7,385 | 846 | 783 | 789 | 8,957 | 12,963 | ||||||||||||
| Net losses on investment securities | (6,715 | ) | (181 | ) | (218 | ) | (99 | ) | (7,032 | ) | (7,922 | ) | ||||||
| Other noninterest income | 1,641 | 2,123 | 1,955 | 2,191 | 5,787 | 5,863 | ||||||||||||
| Total Noninterest Income | 31,942 | 33,661 | 30,223 | 32,212 | 94,377 | 101,583 | ||||||||||||
| Noninterest Expense: | ||||||||||||||||||
| Employee compensation | 58,481 | 59,064 | 58,501 | 59,293 | 176,275 | 172,980 | ||||||||||||
| Employee benefits | 13,084 | 12,926 | 12,147 | 14,671 | 39,902 | 38,597 | ||||||||||||
| Net occupancy | 11,271 | 11,494 | 11,400 | 12,343 | 35,014 | 34,736 | ||||||||||||
| Data processing | 7,456 | 7,405 | 7,290 | 7,463 | 22,209 | 22,134 | ||||||||||||
| Amortization of intangibles | 909 | 1,279 | 910 | 910 | 2,729 | 3,837 | ||||||||||||
| OREO expense | 104 | 185 | 268 | 159 | 531 | 1,167 | ||||||||||||
| Net (gains) losses on the sale of OREO properties | (34 | ) | 93 | 32 | (83 | ) | (85 | ) | 66 | |||||||||
| Equipment expense | 7,811 | 7,170 | 7,548 | 6,853 | 22,212 | 22,192 | ||||||||||||
| FDIC insurance expense | 4,338 | 4,598 | 5,058 | 6,455 | 15,851 | 13,755 | ||||||||||||
| Mortgage loan servicing expense and impairment | 403 | 1,051 | 1,011 | 1,015 | 2,429 | 4,634 | ||||||||||||
| Expense for the reserve for unfunded loan commitments | (2,766 | ) | (3,002 | ) | (2,177 | ) | (1,790 | ) | (6,733 | ) | (2,423 | ) | ||||||
| Other noninterest expense | 34,282 | 32,967 | 32,786 | 33,453 | 100,521 | 96,262 | ||||||||||||
| Total Noninterest Expense | 135,339 | 135,230 | 134,774 | 140,742 | 410,855 | 407,937 | ||||||||||||
| Income Before Income Taxes (FTE)(non-GAAP) | 120,744 | 121,805 | 116,252 | 109,091 | 346,087 | 362,750 | ||||||||||||
| Tax equivalent adjustment | 828 | 869 | 867 | 872 | 2,567 | 3,148 | ||||||||||||
| Income Before Income Taxes (GAAP) | 119,916 | 120,936 | 115,385 | 108,219 | 343,520 | 359,602 | ||||||||||||
| Taxes | 24,649 | 24,779 | 18,878 | 21,405 | 64,932 | 72,679 | ||||||||||||
| Net Income | $ | 95,267 | $ | 96,157 | $ | 96,507 | $ | 86,814 | $ | 278,588 | $ | 286,923 | ||||||
| MEMO: Effective Tax Rate | 20.56 | % | 20.49 | % | 16.36 | % | 19.78 | % | 18.90 | % | 20.21 | % |
9
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(InThousands Except for Per Share Data)
| Consolidated Balance Sheets | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 2024 | September 2023 | September 30 | December 31 | September 30 | June 30 | |||||||||||||
| Q-T-D Average | Q-T-D Average | 2024 | 2023 | 2023 | 2024 | |||||||||||||
| Cash & Cash Equivalents | $ | 1,634,929 | $ | 1,133,432 | $ | 1,908,832 | $ | 1,598,943 | $ | 1,184,054 | $ | 1,858,861 | ||||||
| Securities Available for Sale | 3,218,892 | 3,885,870 | 3,239,501 | 3,786,377 | 3,749,357 | 3,315,726 | ||||||||||||
| Less: Allowance for credit losses | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
| Net available for sale securities | 3,218,892 | 3,885,870 | 3,239,501 | 3,786,377 | 3,749,357 | 3,315,726 | ||||||||||||
| Securities Held to Maturity | 1,020 | 1,020 | 1,020 | 1,020 | 1,020 | 1,020 | ||||||||||||
| Less: Allowance for credit losses | (19 | ) | (19 | ) | (19 | ) | (17 | ) | (18 | ) | (19 | ) | ||||||
| Net held to maturity securities | 1,001 | 1,001 | 1,001 | 1,003 | 1,002 | 1,001 | ||||||||||||
| Equity Securities | 10,014 | 8,556 | 9,082 | 8,945 | 8,548 | 11,094 | ||||||||||||
| Other Investment Securities | 292,590 | 309,824 | 288,831 | 329,429 | 307,392 | 322,761 | ||||||||||||
| Total Securities | 3,522,497 | 4,205,251 | 3,538,415 | 4,125,754 | 4,066,299 | 3,650,582 | ||||||||||||
| Total Cash and Securities | 5,157,426 | 5,338,683 | 5,447,247 | 5,724,697 | 5,250,353 | 5,509,443 | ||||||||||||
| Loans held for sale | 55,408 | 65,009 | 46,493 | 56,261 | 59,614 | 66,475 | ||||||||||||
| Commercial Loans & Leases | 15,869,541 | 15,193,346 | 16,015,679 | 15,535,204 | 15,416,232 | 15,894,244 | ||||||||||||
| Mortgage Loans | 4,734,979 | 4,482,774 | 4,722,997 | 4,728,374 | 4,519,845 | 4,759,798 | ||||||||||||
| Consumer Loans | 940,167 | 1,237,183 | 892,377 | 1,109,607 | 1,178,898 | 956,385 | ||||||||||||
| Gross Loans | 21,544,687 | 20,913,303 | 21,631,053 | 21,373,185 | 21,114,975 | 21,610,427 | ||||||||||||
| Unearned income | (11,762 | ) | (16,999 | ) | (9,085 | ) | (14,101 | ) | (17,092 | ) | (11,700 | ) | ||||||
| Loans & Leases, net of unearned income | 21,532,925 | 20,896,304 | 21,621,968 | 21,359,084 | 21,097,883 | 21,598,727 | ||||||||||||
| Allowance for Loan & Lease Losses | (267,457 | ) | (250,810 | ) | (270,767 | ) | (259,237 | ) | (254,886 | ) | (267,423 | ) | ||||||
| Net Loans | 21,265,468 | 20,645,494 | 21,351,201 | 21,099,847 | 20,842,997 | 21,331,304 | ||||||||||||
| Mortgage Servicing Rights | 1,283 | 4,588 | 0 | 4,554 | 4,616 | 3,934 | ||||||||||||
| Goodwill | 1,888,889 | 1,888,889 | 1,888,889 | 1,888,889 | 1,888,889 | 1,888,889 | ||||||||||||
| Other Intangibles | 10,372 | 15,880 | 9,776 | 12,505 | 15,060 | 10,685 | ||||||||||||
| Operating Lease<br>Right-of-Use Asset | 82,783 | 80,751 | 82,114 | 86,986 | 80,259 | 83,045 | ||||||||||||
| Other Real Estate Owned | 1,787 | 3,189 | 169 | 2,615 | 3,181 | 2,156 | ||||||||||||
| Bank-Owned Life Insurance | 494,438 | 484,751 | 495,784 | 486,895 | 485,386 | 493,498 | ||||||||||||
| Other Assets | 545,470 | 548,687 | 541,589 | 563,233 | 594,439 | 567,989 | ||||||||||||
| Total Assets | $ | 29,503,324 | $ | 29,075,921 | $ | 29,863,262 | $ | 29,926,482 | $ | 29,224,794 | $ | 29,957,418 | ||||||
| MEMO: Interest-earning Assets | $ | 26,131,676 | $ | 25,767,978 | $ | 26,461,342 | $ | 26,623,652 | $ | 25,883,462 | $ | 26,572,087 | ||||||
| Interest-bearing Deposits | $ | 17,399,368 | $ | 15,993,991 | $ | 17,790,247 | $ | 16,670,239 | $ | 16,423,511 | $ | 17,134,728 | ||||||
| Noninterest-bearing Deposits | 5,957,184 | 6,337,052 | 6,038,098 | 6,149,080 | 6,253,343 | 5,931,712 | ||||||||||||
| Total Deposits | 23,356,552 | 22,331,043 | 23,828,345 | 22,819,319 | 22,676,854 | 23,066,440 | ||||||||||||
| Short-term Borrowings | 191,954 | 188,945 | 181,969 | 196,095 | 188,274 | 203,519 | ||||||||||||
| Long-term Borrowings | 748,608 | 1,590,763 | 540,091 | 1,789,103 | 1,388,770 | 1,489,764 | ||||||||||||
| Total Borrowings | 940,562 | 1,779,708 | 722,060 | 1,985,198 | 1,577,044 | 1,693,283 | ||||||||||||
| Operating Lease Liability | 89,082 | 85,112 | 88,464 | 92,885 | 84,569 | 89,308 | ||||||||||||
| Other Liabilities | 208,262 | 192,934 | 256,573 | 257,840 | 237,449 | 251,754 | ||||||||||||
| Total Liabilities | 24,594,458 | 24,388,797 | 24,895,442 | 25,155,242 | 24,575,916 | 25,100,785 | ||||||||||||
| Preferred Equity | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
| Common Equity | 4,908,866 | 4,687,124 | 4,967,820 | 4,771,240 | 4,648,878 | 4,856,633 | ||||||||||||
| Total Shareholders’ Equity | 4,908,866 | 4,687,124 | 4,967,820 | 4,771,240 | 4,648,878 | 4,856,633 | ||||||||||||
| Total Liabilities & Equity | $ | 29,503,324 | $ | 29,075,921 | $ | 29,863,262 | $ | 29,926,482 | $ | 29,224,794 | $ | 29,957,418 | ||||||
| MEMO: Interest-bearing Liabilities | $ | 18,339,930 | $ | 17,773,699 | $ | 18,512,307 | $ | 18,655,437 | $ | 18,000,555 | $ | 18,828,011 |
10
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(InThousands Except for Per Share Data)
| Three Months Ended | Nine Months Ended | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September | September | June | March | September | September | |||||||||||||
| Quarterly/Year-to-Date Share Data: | 2024 | 2023 | 2024 | 2024 | 2024 | 2023 | ||||||||||||
| Earnings Per Share: | ||||||||||||||||||
| Basic | $ | 0.70 | $ | 0.71 | $ | 0.71 | $ | 0.64 | $ | 2.06 | $ | 2.13 | ||||||
| Diluted | $ | 0.70 | $ | 0.71 | $ | 0.71 | $ | 0.64 | $ | 2.06 | $ | 2.12 | ||||||
| Common Dividend Declared Per Share | $ | 0.37 | $ | 0.36 | $ | 0.37 | $ | 0.37 | $ | 1.11 | $ | 1.08 | ||||||
| High Common Stock Price | $ | 39.93 | $ | 34.30 | $ | 36.08 | $ | 38.18 | $ | 39.93 | $ | 42.45 | ||||||
| Low Common Stock Price | $ | 31.47 | $ | 26.49 | $ | 30.68 | $ | 32.92 | $ | 30.68 | $ | 26.49 | ||||||
| Average Shares Outstanding (Net of Treasury Stock): | **** | |||||||||||||||||
| Basic | 135,158,476 | 134,685,041 | 135,137,901 | 134,808,634 | 134,912,625 | 134,493,059 | ||||||||||||
| Diluted | 135,504,911 | 134,887,776 | 135,314,785 | 135,121,380 | 135,143,028 | 134,733,055 | ||||||||||||
| Common Dividends | $ | 50,213 | $ | 48,706 | $ | 50,204 | $ | 50,213 | $ | 150,630 | $ | 146,054 | ||||||
| Dividend Payout Ratio | 52.71 | % | 50.65 | % | 52.02 | % | 57.84 | % | 54.07 | % | 50.90 | % | ||||||
| September 30 | December 31 | September 30 | June 30 | |||||||||||||||
| EOP Share Data: | 2024 | 2023 | 2023 | 2024 | ||||||||||||||
| Book Value Per Share | $ | 36.74 | $ | 35.36 | $ | 34.45 | $ | 35.92 | ||||||||||
| Tangible Book Value Per Share (non-GAAP) ^(1)^ | $ | 22.70 | $ | 21.27 | $ | 20.34 | $ | 21.87 | ||||||||||
| 52-week High Common Stock Price | $ | 39.93 | $ | 42.45 | $ | 44.15 | $ | 38.74 | ||||||||||
| Date | 7/31/24 | 2/3/23 | 11/11/22 | 12/14/23 | ||||||||||||||
| 52-week Low Common Stock Price | $ | 25.35 | $ | 25.35 | $ | 26.49 | $ | 25.35 | ||||||||||
| Date | 10/24/23 | 10/24/23 | 9/22/23 | 10/24/23 | ||||||||||||||
| EOP Shares Outstanding (Net of Treasury Stock): | **** | 135,220,770 | 134,949,063 | 134,933,015 | 135,195,704 | |||||||||||||
| Memorandum Items: | ||||||||||||||||||
| Employees (full-time equivalent) | 2,651 | 2,736 | 2,803 | 2,644 | ||||||||||||||
| Note: | ||||||||||||||||||
| (1) Tangible Book Value Per Share: | ||||||||||||||||||
| Total Shareholders’ Equity (GAAP) | $ | 4,967,820 | $ | 4,771,240 | $ | 4,648,878 | $ | 4,856,633 | ||||||||||
| Less: Total Intangibles | (1,898,665 | ) | (1,901,394 | ) | (1,903,949 | ) | (1,899,574 | ) | ||||||||||
| Tangible Equity (non-GAAP) | $ | 3,069,155 | $ | 2,869,846 | $ | 2,744,929 | $ | 2,957,059 | ||||||||||
| ÷ EOP Shares Outstanding (Net of Treasury Stock) | 135,220,770 | 134,949,063 | 134,933,015 | 135,195,704 | ||||||||||||||
| Tangible Book Value Per Share<br>(non-GAAP) | $ | 22.70 | $ | 21.27 | $ | 20.34 | $ | 21.87 |
11
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(InThousands Except for Per Share Data)
| Three Months Ended<br>September 2024 | Three Months Ended<br>September 2023 | Three Months Ended<br>June 2024 | ||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Average Balances and Yields: | Average | Average | Average | Average | Average | Average | ||||||||||||||||||
| ASSETS: | Balance | Interest^(1)^ | Rate^(1)^ | Balance | Interest^(1)^ | Rate^(1)^ | Balance | Interest^(1)^ | Rate^(1)^ | |||||||||||||||
| Earning Assets: | ||||||||||||||||||||||||
| Federal funds sold and securities purchased under agreements to resell and other short-term<br>investments | $ | 1,387,462 | $ | 19,241 | 5.52 | % | $ | 852,224 | $ | 11,810 | 5.50 | % | $ | 930,453 | $ | 12,787 | 5.53 | % | ||||||
| Investment securities: | ||||||||||||||||||||||||
| Taxable | 3,218,258 | 30,797 | 3.83 | % | 3,994,073 | 35,730 | 3.58 | % | 3,496,310 | 33,968 | 3.89 | % | ||||||||||||
| Tax-exempt | 205,080 | 1,461 | 2.85 | % | 211,178 | 1,482 | 2.81 | % | 209,114 | 1,488 | 2.85 | % | ||||||||||||
| Total securities | 3,423,338 | 32,258 | 3.77 | % | 4,205,251 | 37,212 | 3.54 | % | 3,705,424 | 35,456 | 3.83 | % | ||||||||||||
| Loans and loans held for sale, net of unearned income<br>^(2)^ | 21,588,333 | 332,052 | 6.12 | % | 20,961,313 | 308,757 | 5.85 | % | 21,639,898 | 326,808 | 6.07 | % | ||||||||||||
| Allowance for loan losses | (267,457 | ) | (250,810 | ) | (263,050 | ) | ||||||||||||||||||
| Net loans and loans held for sale | 21,320,876 | 6.20 | % | 20,710,503 | 5.92 | % | 21,376,848 | 6.14 | % | |||||||||||||||
| Total earning assets | 26,131,676 | $ | 383,551 | 5.85 | % | 25,767,978 | $ | 357,779 | 5.52 | % | 26,012,725 | $ | 375,051 | 5.79 | % | |||||||||
| Other assets | 3,371,648 | 3,307,943 | 3,357,439 | |||||||||||||||||||||
| TOTAL ASSETS | $ | 29,503,324 | $ | 29,075,921 | $ | 29,370,164 | ||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||
| Interest-Bearing Liabilities: | ||||||||||||||||||||||||
| Interest-bearing deposits | $ | 17,399,368 | $ | 143,313 | 3.28 | % | $ | 15,993,991 | $ | 108,793 | 2.70 | % | $ | 16,740,124 | $ | 132,425 | 3.18 | % | ||||||
| Short-term borrowings | 191,954 | 2,048 | 4.24 | % | 188,945 | 1,805 | 3.79 | % | 206,234 | 2,206 | 4.30 | % | ||||||||||||
| Long-term borrowings | 748,608 | 7,106 | 3.78 | % | 1,590,763 | 17,859 | 4.45 | % | 1,290,405 | 13,838 | 4.31 | % | ||||||||||||
| Total interest-bearing liabilities | 18,339,930 | 152,467 | 3.31 | % | 17,773,699 | 128,457 | 2.87 | % | 18,236,763 | 148,469 | 3.27 | % | ||||||||||||
| Noninterest-bearing deposits | 5,957,184 | 6,337,052 | 5,976,971 | |||||||||||||||||||||
| Accrued expenses and other liabilities | 297,344 | 278,046 | 298,537 | |||||||||||||||||||||
| TOTAL LIABILITIES | 24,594,458 | 24,388,797 | 24,512,271 | |||||||||||||||||||||
| SHAREHOLDERS’ EQUITY | 4,908,866 | 4,687,124 | 4,857,893 | |||||||||||||||||||||
| TOTAL LIABILITIES AND<br><br><br>SHAREHOLDERS’ EQUITY | $ | 29,503,324 | $ | 29,075,921 | $ | 29,370,164 | ||||||||||||||||||
| NET INTEREST INCOME | $ | 231,084 | $ | 229,322 | $ | 226,582 | ||||||||||||||||||
| INTEREST RATE SPREAD | 2.54 | % | 2.65 | % | 2.52 | % | ||||||||||||||||||
| NET INTEREST MARGIN | 3.52 | % | 3.54 | % | 3.50 | % |
Notes:
| (1) | The interest income and the yields on federally nontaxable loans and investment securities are presented on a tax-equivalent basis using the statutory federal income tax rate of 21%. |
|---|---|
| (2) | Nonaccruing loans are included in the daily average loan amounts outstanding. |
| --- | --- |
12
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(InThousands Except for Per Share Data)
| Nine Months Ended<br>September 2024 | Nine Months Ended<br>September 2023 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Average Balances and Yields: | Average | Average | Average | Average | ||||||||||||
| ASSETS: | Balance | Interest^(1)^ | Rate^(1)^ | Balance | Interest^(1)^ | Rate^(1)^ | ||||||||||
| Earning Assets: | ||||||||||||||||
| Federal funds sold and securities purchased under<br><br><br>agreements to resell and other short-term investments | $ | 1,068,028 | $ | 44,331 | 5.54 | % | $ | 927,255 | $ | 35,499 | 5.12 | % | ||||
| Investment securities: | ||||||||||||||||
| Taxable | 3,484,931 | 99,487 | 3.81 | % | 4,222,849 | 108,710 | 3.43 | % | ||||||||
| Tax-exempt | 208,843 | 4,423 | 2.82 | % | 328,276 | 6,940 | 2.82 | % | ||||||||
| Total securities | 3,693,774 | 103,910 | 3.75 | % | 4,551,125 | 115,650 | 3.39 | % | ||||||||
| Loans and loans held for sale, net of unearned income ^(2)^ | 21,578,981 | 980,413 | 6.07 | % | 20,784,493 | 884,144 | 5.69 | % | ||||||||
| Allowance for loan losses | (263,298 | ) | (242,135 | ) | ||||||||||||
| Net loans and loans held for sale | 21,315,683 | 6.14 | % | 20,542,358 | 5.75 | % | ||||||||||
| Total earning assets | 26,077,485 | $ | 1,128,654 | 5.78 | % | 26,020,738 | $ | 1,035,293 | 5.32 | % | ||||||
| Other assets | 3,357,672 | 3,319,143 | ||||||||||||||
| TOTAL ASSETS | $ | 29,435,157 | $ | 29,339,881 | ||||||||||||
| LIABILITIES: | ||||||||||||||||
| Interest-Bearing Liabilities: | ||||||||||||||||
| Interest-bearing deposits | $ | 16,936,116 | $ | 404,115 | 3.19 | % | $ | 15,569,985 | $ | 268,962 | 2.31 | % | ||||
| Short-term borrowings | 200,555 | 6,336 | 4.22 | % | 177,707 | 4,451 | 3.35 | % | ||||||||
| Long-term borrowings | 1,178,176 | 37,176 | 4.21 | % | 2,102,386 | 68,498 | 4.36 | % | ||||||||
| Total interest-bearing liabilities | 18,314,847 | 447,627 | 3.26 | % | 17,850,078 | 341,911 | 2.56 | % | ||||||||
| Noninterest-bearing deposits | 5,958,668 | 6,576,063 | ||||||||||||||
| Accrued expenses and other liabilities | 300,220 | 274,418 | ||||||||||||||
| TOTAL LIABILITIES | 24,573,735 | 24,700,559 | ||||||||||||||
| SHAREHOLDERS’ EQUITY | 4,861,422 | 4,639,322 | ||||||||||||||
| TOTAL LIABILITIES AND<br><br><br>SHAREHOLDERS’ EQUITY | $ | 29,435,157 | $ | 29,339,881 | ||||||||||||
| NET INTEREST INCOME | $ | 681,027 | $ | 693,382 | ||||||||||||
| INTEREST RATE SPREAD | 2.52 | % | 2.76 | % | ||||||||||||
| NET INTEREST MARGIN | 3.49 | % | 3.56 | % |
Notes:
| (1) | The interest income and the yields on federally nontaxable loans and investment securities are presented on a tax-equivalent basis using the statutory federal income tax rate of 21%. |
|---|---|
| (2) | Nonaccruing loans are included in the daily average loan amounts outstanding. |
| --- | --- |
13
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(InThousands Except for Per Share Data)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September | September | June | March | September | September | |||||||||||||||||||
| Selected Financial Ratios: | 2024 | 2023 | 2024 | 2024 | 2024 | 2023 | ||||||||||||||||||
| Return on Average Assets | 1.28 | % | 1.31 | % | 1.32 | % | 1.19 | % | 1.26 | % | 1.31 | % | ||||||||||||
| Return on Average Shareholders’ Equity | 7.72 | % | 8.14 | % | 7.99 | % | 7.25 | % | 7.65 | % | 8.27 | % | ||||||||||||
| Return on Average Tangible Equity (non-GAAP) ^(1)^ | 12.59 | % | 13.71 | % | 13.12 | % | 11.98 | % | 12.57 | % | 14.03 | % | ||||||||||||
| Efficiency Ratio | 51.62 | % | 51.59 | % | 52.66 | % | 55.26 | % | 53.16 | % | 51.52 | % | ||||||||||||
| Price / Earnings Ratio | 13.22 | x | 9.70 | x | 11.40 | x | 13.96 | x | 13.53 | x | 9.74 | x | ||||||||||||
| Note: | ||||||||||||||||||||||||
| (1) Return on Average Tangible Equity: | ||||||||||||||||||||||||
| (a) Net Income (GAAP) | $ | 95,267 | $ | 96,157 | $ | 96,507 | $ | 86,814 | $ | 278,588 | $ | 286,923 | ||||||||||||
| (b) Number of Days | 92 | 92 | 91 | 91 | 274 | 273 | ||||||||||||||||||
| Average Total Shareholders’ Equity (GAAP) | $ | 4,908,866 | $ | 4,687,124 | $ | 4,857,893 | $ | 4,816,476 | $ | 4,861,422 | $ | 4,639,322 | ||||||||||||
| Less: Average Total Intangibles | (1,899,261 | ) | (1,904,769 | ) | (1,900,164 | ) | (1,901,074 | ) | (1,900,163 | ) | (1,906,042 | ) | ||||||||||||
| (c) Average Tangible Equity (non-GAAP) | $ | 3,009,605 | $ | 2,782,355 | $ | 2,957,729 | $ | 2,915,402 | $ | 2,961,259 | $ | 2,733,280 | ||||||||||||
| Return on Average Tangible Equity (non-GAAP)\ [(a) / (b)] x<br>366 or 365 / (c) | 12.59 | % | 13.71 | % | 13.12 | % | 11.98 | % | 12.57 | % | 14.03 | % | ||||||||||||
| Selected Financial Ratios: | September 30<br>2024 | December 31<br>2023 | September 30<br>2023 | June 30<br>2024 | ||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||
| Loans & Leases, net of unearned income / Deposit Ratio | 90.74 | % | 93.60 | % | 93.04 | % | 93.64 | % | ||||||||||||||||
| Allowance for Loan & Lease Losses/ Loans & Leases, net of unearned<br>income | 1.25 | % | 1.21 | % | 1.21 | % | 1.24 | % | ||||||||||||||||
| Allowance for Credit Losses ^(2)^/<br>Loans & Leases, net of unearned income | 1.43 | % | 1.42 | % | 1.42 | % | 1.43 | % | ||||||||||||||||
| Nonaccrual Loans / Loans & Leases, net of unearned income | 0.24 | % | 0.14 | % | 0.12 | % | 0.25 | % | ||||||||||||||||
| 90-Day Past Due Loans/ Loans & Leases, net of<br>unearned income | 0.06 | % | 0.07 | % | 0.09 | % | 0.06 | % | ||||||||||||||||
| Non-performing Loans/ Loans & Leases, net of<br>unearned income | 0.30 | % | 0.21 | % | 0.20 | % | 0.30 | % | ||||||||||||||||
| Non-performing Assets/ Total Assets | 0.22 | % | 0.16 | % | 0.16 | % | 0.23 | % | ||||||||||||||||
| Primary Capital Ratio | 17.49 | % | 16.79 | % | 16.76 | % | 17.06 | % | ||||||||||||||||
| Shareholders’ Equity Ratio | 16.64 | % | 15.94 | % | 15.91 | % | 16.21 | % | ||||||||||||||||
| Price / Book Ratio | 1.01 | x | 1.06 | x | 0.80 | x | 0.90 | x |
Note:
| (2) | Includes allowances for loan losses and lending-related commitments. |
|---|
14
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(InThousands Except for Per Share Data)
| Three Months Ended | Nine Months Ended | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30 | September 30 | June 30 | March 31 | September 30 | September 30 | |||||||||||||
| Mortgage Banking Data:^(1)^ | 2024 | 2023 | 2024 | 2024 | 2024 | 2023 | ||||||||||||
| Loans originated | $ | 151,333 | $ | 185,945 | $ | 185,322 | $ | 176,906 | $ | 513,561 | $ | 635,582 | ||||||
| Loans sold | 171,315 | 217,627 | 163,273 | 188,741 | 523,329 | 632,847 | ||||||||||||
| September 30 | December 31 | September 30 | June 30 | |||||||||||||||
| Mortgage Loan Servicing Data:^(2)^ | 2024 | 2023 | 2023 | 2024 | ||||||||||||||
| Balance of loans serviced | $ | — | $ | 1,202,448 | $ | 1,216,805 | $ | 1,138,443 | ||||||||||
| Number of loans serviced | — | 12,419 | 12,596 | 11,853 | ||||||||||||||
| September 30 | December 31 | September 30 | June 30 | March 31 | ||||||||||||||
| Asset Quality Data: | 2024 | 2023 | 2023 | 2024 | 2024 | |||||||||||||
| EOP Non-Accrual Loans | $ | 52,446 | $ | 30,919 | $ | 24,456 | $ | 52,929 | $ | 63,053 | ||||||||
| EOP 90-Day Past Due Loans | 12,794 | 14,579 | 18,283 | 12,402 | 11,329 | |||||||||||||
| Total EOP Non-performing Loans | $ | 65,240 | $ | 45,498 | $ | 42,739 | $ | 65,331 | $ | 74,382 | ||||||||
| EOP Other Real Estate Owned | 169 | 2,615 | 3,181 | 2,156 | 2,670 | |||||||||||||
| Total EOP Non-performing Assets | $ | 65,409 | $ | 48,113 | $ | 45,920 | $ | 67,487 | $ | 77,052 | ||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| September 30 | September 30 | June 30 | March 31 | September 30 | September 30 | |||||||||||||
| Allowance for Loan & Lease Losses: | 2024 | 2023 | 2024 | 2024 | 2024 | 2023 | ||||||||||||
| Beginning Balance | $ | 267,423 | $ | 250,721 | $ | 262,905 | $ | 259,237 | $ | 259,237 | $ | 234,746 | ||||||
| Gross Charge-offs | (4,903 | ) | (2,836 | ) | (2,542 | ) | (3,576 | ) | (11,021 | ) | (8,046 | ) | ||||||
| Recoveries | 1,304 | 1,052 | 1,281 | 1,506 | 4,091 | 3,908 | ||||||||||||
| Net Charge-offs | (3,599 | ) | (1,784 | ) | (1,261 | ) | (2,070 | ) | (6,930 | ) | (4,138 | ) | ||||||
| Provision for Loan & Lease Losses | 6,943 | 5,949 | 5,779 | 5,738 | 18,460 | 24,278 | ||||||||||||
| Ending Balance | $ | 270,767 | $ | 254,886 | $ | 267,423 | $ | 262,905 | $ | 270,767 | $ | 254,886 | ||||||
| Reserve for lending-related commitments | 37,973 | 43,766 | 40,739 | 42,915 | 37,973 | 43,766 | ||||||||||||
| Allowance for Credit Losses ^(3)^ | $ | 308,740 | $ | 298,652 | $ | 308,162 | $ | 305,820 | $ | 308,740 | $ | 298,652 |
Notes:
| (1) | During the first quarter of 2024, United completed its previously announced consolidation of its mortgage<br>delivery channels. Based on an evaluation performed in accordance with ASC 280, Segment Reporting, beginning with the periods as of March 31, 2024, United operates one reportable business segment. Mortgage banking data above is presented<br>on a consolidated basis for all current and prior periods. |
|---|---|
| (2) | As disclosed, United sold its remaining mortgage servicing rights during the third quarter of 2024.<br> |
| --- | --- |
| (3) | Includes allowances for loan losses and lending-related commitments. |
| --- | --- |
15
EX-99.2
Third Quarter 2024 Earnings Review United Bankshares, Inc. (UBSI) October 24, 2024 Exhibit 99.2
This presentation and statements made by United Bankshares, Inc. (“UBSI”) and its management contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are intended to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about (i) the benefits of the merger between Piedmont Bancorp, Inc. (“Piedmont”) and UBSI (the “Merger”), including future financial and operating results, cost savings enhancements to revenue and accretion to reported earnings that may be realized from the Merger; (ii) UBSI’s and Piedmont’s plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts; and (iii) other statements identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “targets,” “projects,” “will,” or words of similar meaning generally intended to identify forward-looking statements. These forward-looking statements are based upon the current beliefs and expectations of the respective managements of UBSI and Piedmont and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of UBSI and Piedmont. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from the anticipated results discussed in these forward-looking statements because of possible uncertainties. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) the businesses of UBSI and Piedmont may not be combined successfully, or such combination may take longer, be more difficult, time-consuming or costly to accomplish than expected; (2) the expected growth opportunities or cost savings from the Merger may not be fully realized or may take longer to realize than expected; (3) deposit attrition, operating costs, customer losses and business disruption following the Merger, including adverse effects on relationships with employees, may be greater than expected; (4) the regulatory approvals required for the Merger may not be obtained on the proposed terms or on the anticipated schedule or may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the transaction; (5) legislative or regulatory changes, including changes in accounting standards, may adversely affect the businesses in which UBSI and Piedmont are engaged; (6) the possibility of increased scrutiny by, and/or additional regulatory requirements of, governmental authorities as a result of the transaction or the size, scope and complexity of UBSI’s business operations following the Merger; (7) competitive pressures on product pricing and services; (8) success, impact, and timing of UBSI’s business strategies, including market acceptance of any new products or services; (9) disruption from the Merger making it more difficult to maintain relationships with employees, customers or other parties with whom UBSI and Piedmont have business relationships; (10) diversion of management time on Merger-related issues; (11) risks relating to the potential dilutive effect of the shares of UBSI common stock to be issued in the Merger; (12) reputational risk and the reaction of each company’s customers, suppliers, employees or other business partners to the transaction; (13) the failure of the closing conditions in the merger agreement to be satisfied, or any unexpected delay in closing the transaction or the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; (14) the outcome of any legal proceedings that may be instituted against UBSI or Piedmont; (15) general competitive, economic, political and market conditions and other factors that may affect future results of UBSI and Piedmont, including changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; customer borrowing, repayment, investment and deposit practices; the impact, extent and timing of technological changes; capital management activities; and other actions of the Federal Reserve Board and legislative and regulatory actions and reforms; (16) uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Federal Reserve Board; (17) volatility and disruptions in global capital and credit markets; and (18) the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations. Additional factors, that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in UBSI’s reports (such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the SEC and available on the SEC’s Internet site (http://www.sec.gov). UBSI and Piedmont caution that the foregoing list of factors is not exclusive. All subsequent written and oral forward-looking statements concerning the proposed transaction or other matters attributable to UBSI or Piedmont or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above. UBSI and Piedmont do not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made. FORWARD LOOKING STATEMENTS
Achieved Net Income of $95.3 million and Diluted Earnings Per Share of $0.70 Generated Return on Average Assets of 1.28%, Return on Average Equity of 7.72%, and Return on Average Tangible Equity* of 12.59% Net Interest Margin (FTE) increased from 3.50% to 3.52% Period-end deposits grew $762 million. Excluding the decline in brokered deposits, period-end deposits grew $906 million Piedmont Bancorp, Inc. merger – shareholder approval received during 3Q24. Expected to close 4Q24 or early 1Q25, subject to regulatory approval and certain other customary closing conditions Consistently ranked as one of the most trustworthy banks in America by Newsweek (#1 in 2023, #2 in 2022, #4 in 2024) Achieved the #1 deposit market share position in the state of West Virginia based on the FDIC’s annual Summary of Deposits for 2024 Quarterly dividend of $0.37 per share equates to a yield of ~4.0% (based upon recent prices). 2023 was the 50th consecutive year of dividend increases to shareholders Asset quality remains sound and Non-Performing Assets remained low at 0.22% of Total Assets Strong expense control with an efficiency ratio of 51.62% Capital position remains robust and liquidity remains sound 3Q24 HIGHLIGHTS *Non-GAAP measure. Refer to appendix.
Linked-Quarter (LQ) Net Income was $95.3 million in 3Q24 compared to $96.5 million in 2Q24, with diluted EPS of $0.70 in 3Q24 compared to $0.71 in 2Q24. Net Interest Income increased $4.5 million driven by an increase in average short-term investments, a higher yield on average net loans and loans held for sale, and a decrease in average long-term borrowings partially offset by an increase in average interest-bearing deposits as well as a higher average rate paid on deposits. Provision Expense was $6.9 million in 3Q24 compared to $5.8 million in 2Q24. Noninterest Income increased $1.7 million compared to 2Q24 driven by increases in several categories of noninterest income. During 3Q24, United sold its remaining mortgage servicing rights (“MSRs”) with an aggregate unpaid principal balance of $1.1 billion at a gain of $7.1 million. United also sold $196.7 million of AFS investment securities at a loss of $6.9 million. Noninterest Expense increased $0.6 million compared to 2Q24 driven by a $1.5 million increase in other noninterest expense. The increase in other noninterest expense was mainly due to higher amounts of certain general operating expenses, partially offset by decreases in several categories including a decrease of $0.9 million in merger-related expenses related to the Piedmont acquisition. The effective tax rate increased from 16.4% to 20.6% in 3Q24. 2Q24 included the impact of discrete tax benefits recognized in 2Q24. EARNINGS SUMMARY
*Non-GAAP measure. Refer to appendix. Strong profitability and expense control 4Q23 was impacted by a $12.0 million expense related to the FDIC’s special assessment levied on banking organizations to recover losses to the Deposit Insurance Fund. PERFORMANCE RATIOS
Reported Net Interest Margin increased from 3.50% to 3.52% LQ. Linked-quarter Net Interest Income (FTE) increased $4.5 million driven by an increase in average short-term investments, a higher yield on average net loans and loans held for sale, and a decrease in average long-term borrowings partially offset by an increase in average interest-bearing deposits as well as a higher average rate paid on deposits. Approximately ~55% of the loan portfolio is fixed rate and ~45% is adjustable rate, while ~31% of the total portfolio is projected to reprice within the next 3 months. ~21% of the securities portfolio is floating rate. Securities balances of approximately ~$360 million with an average yield of ~4.5% are projected to roll off over the remainder of 2024. Securities balances of an additional approximately ~$360 million with an average yield of ~3.8% are projected to roll off during FY 2025. During 3Q24, approximately ~$197 million of securities were sold at a loss of $6.9 million. The securities sold were comprised of ~66% in floating rate securities and ~34% in fixed rate securities. Approximately ~$150 million was reinvested in fixed rate securities with an average yield of ~5.1%. HTM securities are immaterial at $1.0 million, or 0.0% of total securities. The duration of the AFS portfolio is 4.2 years. Time deposits have an average maturity of ~6 months. Approximately ~12% of total deposits have interest rates tied to a floating rate index. Scheduled purchase accounting loan accretion is estimated at $1.8 million for the remainder of FY 2024 and $5.7 million for FY 2025 (not including the impact from the Piedmont acquisition). NET INTEREST INCOME AND MARGIN
Linked-Quarter loan balances increased $21 million primarily driven by Construction & Land Development and Residential Real Estate loans. Loan growth continues to be led by the North Carolina & South Carolina markets, with loan balances up 10.2% annualized in 3Q24, and up 14.7% annualized YTD. Non Owner Occupied CRE to Total Risk Based Capital was ~271% at 3Q24. CRE portfolio remains diversified among underlying collateral types. Non Owner Occupied Office loans total $1.0 billion (~5% of total loans). The Top 40 Office loans make up ~70% of total Non Owner Occupied Office balances. The weighted average LTV based on current loan balances and appraised values at origination for the Top 40 was ~56% at 9/30/24. The weighted average LTV at origination for the Top 40 was ~63%. United has been disciplined in its approach to underwriting Office loans. The stringent underwriting process focuses on the underlying tenants, lease terms, sponsor support, location, property class, amenities, etc. Weighted average FICO of all consumer-related loan sectors is ~757. Total purchase accounting-related fair value discount on loans was $28 million as of 9/30/24. $ in millions LOAN SUMMARY (EXCLUDES LOANS HELD FOR SALE)
End of Period Balances (000s) 6/30/24 9/30/24 Non-Accrual Loans $52,929 $52,446 90-Day Past Due Loans $12,402 $12,794 Total Non-performing Loans $65,331 $65,240 Other Real Estate Owned $2,156 $169 Total Non-performing Assets $67,487 $65,409 Non-performing Loans / Loans 0.30% 0.30% Non-performing Assets / Total Assets 0.23% 0.22% Annualized Net Charge-offs / Average Loans 0.02% 0.07% Allowance for Loan & Lease Losses (ALLL) $267,423 $270,767 ALLL / Loans, net of unearned income 1.24% 1.25% Allowance for Credit Losses (ACL)* $308,162 $308,740 ACL / Loans, net of unearned income 1.43% 1.43% NPAs were $65.4 million at 9/30/24 compared to $67.5 million at 6/30/24 with the ratio of NPAs to Total Assets decreasing from 0.23% to 0.22%. 30-89 Day Past Due loans were 0.44% of total loans at 9/30/24 compared to 0.40% at 6/30/24 and 0.39% at 12/31/23. ALLL increased $3.3 million LQ to 1.25% of Total Loans. *ACL is comprised of ALLL and the reserve for lending-related commitments CREDIT QUALITY
Strong core deposit base with 25% of deposits in Non Interest Bearing accounts. LQ deposits increased $762 million driven by Money Market Accounts, Interest Bearing Transaction and Non Interest Bearing accounts. Brokered deposits declined $144 million compared to 2Q24 and now represent 0.0% of total deposits as of 9/30/24. Enviable deposit franchise with an attractive mix of both high growth MSAs and stable, rural markets with a dominant market share position. $ in millions Source: S&P Global Market Intelligence DEPOSIT SUMMARY Top 10 Deposit Markets by MSA (as of 6/30/24) MSA Total Deposits In Market ($000) Number of Branches Rank Washington, DC 10,071,646 58 7 Charleston, WV 1,589,675 5 2 Morgantown, WV 1,141,970 6 2 Richmond, VA 762,351 12 9 Parkersburg, WV 713,929 4 1 Hagerstown, MD 656,854 6 2 Myrtle Beach, SC 631,752 7 9 Charlotte, NC 585,589 7 17 Wheeling, WV 537,803 6 2 Charleston, SC 524,432 8 11
Deposit Account Details ($ in millions) End of Period Ratios / Values 9/30/24 % of Total Deposits Estimated Uninsured Deposits (less affiliate and collateralized deposits) $7,448 31% Estimated Insured/Collateralized Deposits $16,380 69% Total Deposits $23,828 100% *Does not include other sources of liquidity such as Fed Funds Lines, additional Reciprocal Deposit capacity, etc. Available Liquidity ($ in millions) 9/30/24 Cash & Cash Equivalents $1,909 Unpledged AFS Securities $1,083 Available FHLB Borrowing Capacity $4,032 Available FRB Discount Window Borrowing Capacity $4,585 Subtotal $11,609 Additional FHLB Capacity (with delivery of collateral) $4,154 Additional Brokered Deposit Capacity (based on internal policy) $4,766 Total Liquidity* $20,529 Liquidity remains strong with a granular deposit base and geographic diversification. Average deposit account size is ~$36 thousand with >650 thousand total deposit accounts. Estimated uninsured/uncollateralized deposits were 28% at 12/31/23 and 37% at 12/31/22. LIQUIDITY POSITION & ADDITIONAL DEPOSIT DETAIL
West Virginia #1 in the state with $6.3 billion in deposits. United ranks #1 or #2 in deposit market share within its top 5 largest markets in the state. United continues to build franchise value with an attractive mix of both high growth MSAs and stable, rural markets with a dominant market share position. Further growth opportunities exist to expand our presence in some of the most desirable banking markets in the nation. These dynamics uniquely position our franchise and contribute to making United one of the most valuable banking companies in the Southeast and Mid-Atlantic. Washington D.C. MSA #1 regional bank (#7 overall) with $10.1 billion in deposits. United has increased deposit market share in the D.C. MSA from #15 in 2013 to #7 in 2024, with total deposits increasing from $2.1 billion to $10.1 billion. Virginia- #7 in the state with $9.1 billion (including VA deposits within the D.C. MSA). North Carolina #17 in the state with $2.3 billion. Select MSAs: #17 in Charlotte #26 in Raleigh #9 in Wilmington #10 in Greenville #1 in Washington #8 in Rocky Mount #7 in Fayetteville South Carolina #11 in the state with $1.8 billion. Select MSAs: #11 in Charleston #9 in Myrtle Beach #13 in Greenville #15 in Columbia Source: S&P Global Market Intelligence; Data as of 6/30/24 ATTRACTIVE DEPOSIT MARKET SHARE POSITION
End of Period Ratios / Values 6/30/24 9/30/24** Common Equity Tier 1 Ratio 13.5% 13.8% Tier 1 Capital Ratio 13.5% 13.8% Total Risk Based Capital Ratio 15.8% 16.2% Leverage Ratio 11.6% 11.7% Total Equity to Total Assets 16.2% 16.6% *Tangible Equity to Tangible Assets (non-GAAP) 10.5% 11.0% Book Value Per Share $35.92 $36.74 *Tangible Book Value Per Share (non-GAAP) $21.87 $22.70 Capital ratios remain significantly above regulatory “Well Capitalized” levels and exceed all internal capital targets. United did not repurchase any common shares during 2Q24 or 3Q24. As of 9/30/24, there were 4,371,239 shares available to be repurchased under the approved plan. *Non-GAAP measure. Refer to appendix. **Regulatory ratios are estimates as of the earnings release date. CAPITAL RATIOS AND PER SHARE DATA
Select guidance is being provided for 2024. Our outlook may change if the expectations for these items vary from current expectations. The guidance represents UBSI on a standalone basis and does not include any assumed impact from the Piedmont acquisition. Balance Sheet: Expect loan growth, excluding loans held for sale, to be in the low single digits for the 4th quarter of 2024 (annualized). Expect investment portfolio balances to increase ~$100 million in 4Q24. Expect deposits to be relatively flat in 4Q24. Net Interest Income / Net Interest Margin: Net interest income (non-FTE) expected to be in the range of $908 million to $913 million for 2024 (assumes two 25 bps rate cuts in 4Q24). Expect the net interest margin to remain relatively stable in 4Q24 compared to 3Q24. Provision Expense: Asset quality remains sound. Provision expense will be dependent on the future economic outlook, future credit trends within United’s portfolio, and loan growth. Expect credit environment to continue to normalize. Expect United’s credit performance to outperform the industry. Current planning assumption for provision expense is $25 million for FY 2024. Non Interest Income: Expect non interest income to be in the range of $122 million to $126 million for 2024. Mortgage banking revenue will be subject to industry trends. Non Interest Expense: Expect non interest expense, excluding any additional merger-related expenses, to be in the range of $547 million to $552 million for 2024. Effective Tax Rate: Estimated at approximately ~20.5% for the remainder of 2024. Capital: Stock buyback will be market dependent. United’s capital position remains robust. 2024 OUTLOOK
Premier Mid-Atlantic and Southeast franchise with an attractive mix of high growth MSAs and smaller stable markets with a dominant market share position Consistently high-performing company with a culture of disciplined risk management and expense control 50 consecutive years of dividend increases evidences United’s strong profitability, solid asset quality, and sound capital management over a very long period of time Experienced management team with a proven track record of execution Committed to our mission of excellence in service to our employees, our customers, our shareholders and our communities Attractive valuation with a current Price-to-Earnings Ratio of ~13.6x (based upon median 2024 street consensus estimate of $2.70 per Bloomberg) INVESTMENT THESIS
Continuation of UBSI’s proven M&A strategy | UBSI’s 34th acquisition Entrance into Greater Atlanta Area markets with robust economic growth opportunities Enhances UBSI’s position as one of the premier regional banking companies in the Southeast and Mid-Atlantic Piedmont Overview Advancing Strategy Financially Compelling Low-Risk Transaction(3) Transaction Details, Timing and Approvals Headquarters: Peachtree Corners, GA Total Assets: $2.1 billion(1) High-performing Franchise(2): 1.43% LTM ROAA; 14.9% LTM ROATCE; LTM Net Interest Margin 4.25%; NPAs / Assets 0.00% Internal Rate of Return of 20% EPS Accretion of 7.6%(4) in 2025 and 8.3% in 2026 (3.5%) Dilution to Tangible Book Value per Share (GAAP) | Earnback of 2.8 Years UBSI Maintains “Well-Capitalized” regulatory capital ratios 15.0% Total Risked Based Capital Ratio | 10.4% Tangible Common Equity Pro forma CRE to Total Capital Ratios at closing below regulatory guidance (<100% ADC to TRBC | <300% Total CRE to TRBC) Consideration Mix: 100% stock Fixed Exchange Ratio: 0.300x Anticipated Closing: late 2024 / early 2025 Customary regulatory approvals (only Fed approval is required at the federal level) Piedmont shareholder approval received (1) As of March 31, 2024 // (2) Q1 2024 LTM financial highlights shown as bank level // (3) Projections as of merger announcement date // (4) Assumes fully phased-in cost savings Source: S&P Capital IQ Pro PIEDMONT MERGER- ANNOUNCED MAY 10, 2024
Total Assets Note: Pro forma financial information at anticipated closing date based on assumptions at time of deal announcement Source: S&P Capital IQ Pro ~$25.5 Billion ~$31.8 Billion Net Loans Total Deposits Tangible Common Equity ~$23.7 Billion ~$3.1 Billion 227 Locations Pro Forma 16 Locations 243 Locations PIEDMONT MERGER- PRO FORMA FRANCHISE
(1) Estimated total pro forma assets at transaction close based on assumptions at time of deal announcement Source: S&P Capital IQ Pro; Company filings (1) DEMONSTRATED HISTORY OF SUCCESSFUL ACQUISITIONS
APPENDIX
(dollars in thousands) 3Q23 4Q23 1Q24 2Q24 3Q24 (1) Return on Average Tangible Equity (A) Net Income (GAAP) $96,157 $79,390 $86,814 $96,507 $95,267 (B) Number of Days in the Quarter 92 92 91 91 92 Average Total Shareholders' Equity (GAAP) $4,687,124 $4,697,680 $4,816,476 $4,857,893 $4,908,866 Less: Average Total Intangibles (1,904,769) (1,903,458) (1,901,074) (1,900,164) (1,899,261) (C) Average Tangible Equity (non-GAAP) $2,782,355 $2,794,222 $2,915,402 $2,957,729 $3,009,605 Formula: [(A) / (B)]*365 (or 366 for leap year) (C) Return on Average Tangible Equity (non-GAAP) 13.71% 11.27% 11.98% 13.12% 12.59% RECONCILIATION OF NON-GAAP ITEMS
(dollars in thousands) 6/30/2024 9/30/2024 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 29,957,418 $ 29,863,262 Less: Total Intangibles (GAAP) (1,899,574) (1,898,665) Tangible Assets (non-GAAP) $ 28,057,844 $ 27,964,597 Total Shareholders' Equity (GAAP) $ 4,856,633 $ 4,967,820 Less: Total Intangibles (GAAP) (1,899,574) (1,898,665) Tangible Equity (non-GAAP) $ 2,957,059 $ 3,069,155 Tangible Equity to Tangible Assets (non-GAAP) 10.5% 11.0% (3) Tangible Book Value Per Share: Total Shareholders' Equity (GAAP) $ 4,856,633 $ 4,967,820 Less: Total Intangibles (GAAP) (1,899,574) (1,898,665) Tangible Equity (non-GAAP) $ 2,957,059 $ 3,069,155 ÷ EOP Shares Outstanding (Net of Treasury Stock) 135,195,704 135,220,770 Tangible Book Value Per Share (non-GAAP) $21.87 $22.70 RECONCILIATION OF NON-GAAP ITEMS (CONT.)