EXHIBIT 99.1

News Release

 

 

 

For Immediate Release		Contact: W. Mark Tatterson
January 24, 2025		Chief Financial Officer
		(800) 445-1347 ext. 8716

United Bankshares, Inc. Announces Earnings

for the Fourth Quarter and Year of 2024

WASHINGTON, D.C. and CHARLESTON, WV — United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today reported earnings for the fourth quarter of 2024 of $94.4 million, or $0.69 per diluted share. Fourth quarter of 2024 results produced annualized returns on average assets, average equity, and average tangible equity, a non-GAAP measure, of 1.25%, 7.48%, and 12.03%, respectively. Earnings for the year of 2024 were $373.0 million, or $2.75 per diluted share, and returns on average assets, average equity, and average tangible equity were 1.26%, 7.61%, and 12.43%, respectively.

“UBSI capped off a successful 2024 with another high quality quarter,” stated Richard M. Adams, Jr., United’s Chief Executive Officer. “Strong earnings, credit, and capital continue to be the story, and we also received regulatory approval of our acquisition in Atlanta. As we turn our sights towards 2025, we are excited about the opportunities we see in front of us.”

Earnings for the third quarter of 2024 were $95.3 million, or $0.70 per diluted share, and annualized returns on average assets, average equity, and average tangible equity were 1.28%, 7.72%, and 12.59%, respectively. Earnings for the fourth quarter of 2023 were $79.4 million, or $0.59 per diluted share, and annualized returns on average assets, average equity, and average tangible equity were 1.08%, 6.70%, and 11.27%, respectively. Earnings for the year of 2023 were $366.3 million, or $2.71 per diluted share, and returns on average assets, average equity, and average tangible equity were 1.25%, 7.87%, and 13.33%, respectively. The fourth quarter of 2023 included approximately $12.0 million of noninterest expense for the Federal Deposit Insurance Corporation’s (“FDIC”) special assessment levied on banking organizations to recover losses to the Deposit Insurance Fund.

On January 10, 2025, United consummated its acquisition of Atlanta-based Piedmont Bancorp, Inc. (“Piedmont”). As of January 10, 2025, Piedmont had total assets of approximately $2.4 billion, total loans of approximately $2.1 billion, total liabilities of approximately $2.2 billion, total deposits of approximately $2.1 billion, and total shareholders’ equity of approximately $202 million. Merger-related expenses for the fourth quarter and year of 2024 were $1.3 million and $2.9 million, respectively.

 

 

1

United Bankshares, Inc. Announces…

January 24, 2025

Page Two

 

Fourth quarter of 2024 compared to the third quarter of 2024

Earnings for the fourth quarter of 2024 were $94.4 million, or $0.69 per diluted share, as compared to earnings of $95.3 million, or $0.70 per diluted share, for the third quarter of 2024.

Net interest income for the fourth quarter of 2024 was $232.6 million, an increase of $2.4 million, or 1%, from the third 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 $233.4 million for the fourth quarter of 2024 increased $2.3 million, or 1%, from the third quarter of 2024. The increase in net interest income and tax-equivalent net interest income was mainly due to a lower average rate paid on deposits and an increase in average earning assets that was largely funded by deposit growth. This increase in net interest income and tax-equivalent net interest income was partially offset by a lower yield on average net loans and loans held for sale. The yield on average interest-bearing deposits decreased 26 basis points from the third quarter of 2024. Average earning assets increased $556.2 million, or 2%, from the third quarter of 2024 due to a $419.7 million increase in average short-term investments, a $121.5 million increase in average net loans and loans held for sale, and a $14.9 million increase in average investment securities. The yield on average net loans and loans held for sale decreased 18 basis points from the third quarter of 2024. The net interest margin was 3.49% for the fourth quarter of 2024 as compared to 3.52% for the third quarter of 2024.

The provision for credit losses was $6.7 million for the fourth quarter of 2024 as compared to $6.9 million for the third quarter of 2024.

Noninterest income for the fourth quarter of 2024 was $29.3 million, a decrease of $2.6 million, or 8%, from the third quarter of 2024 driven by decreases in mortgage loan servicing income of $7.4 million and income from mortgage banking activities of $2.2 million partially offset by lower net losses on investment securities of $6.0 million and increases in several other categories of noninterest income, none of which were significant. During the third quarter of 2024, United sold its remaining mortgage servicing rights (“MSRs”) at a gain of $7.1 million. The decrease in income from mortgage banking activities was mainly due to lower mortgage loan sale volume and a lower quarter-end valuation of mortgage derivatives and mortgage loans held for sale. Net losses on investment securities were $688 thousand for the fourth quarter of 2024 compared to $6.7 million for the third quarter of 2024. During the fourth quarter of 2024, $2.4 million of losses on sales of $170.9 million of available for sale (“AFS”) investment securities were partially offset by net unrealized fair value gains on equity securities of $1.7 million. During the third quarter of 2024, United sold $196.7 million of AFS investment securities at a loss of $6.9 million.

Noninterest expense for the fourth quarter of 2024 of $134.2 million was flat from the third quarter of 2024, decreasing $1.2 million, or less than 1%. The slight decrease in noninterest expense was driven by decreases in several categories of noninterest expense, none of which were significant. Within other noninterest expense, an increase in merger-related expenses was mostly offset by lower amounts of certain general operating expenses. Merger-related expenses for the fourth quarter of 2024 were $1.3 million as compared to $332 thousand for the third quarter of 2024.

For the fourth quarter of 2024, income tax expense was $26.7 million as compared to $24.6 million for the third quarter of 2024. The increase was driven by a higher effective tax rate and slightly higher pre-tax earnings. United’s effective tax rate was 22.0% and 20.6% for the fourth quarter of 2024 and third quarter of 2024, respectively. The higher effective tax rate was primarily due to the impact of provision to return adjustments in the fourth quarter of 2024.

 

2

United Bankshares, Inc. Announces…

January 24, 2025

Page Three

 

Fourth quarter of 2024 compared to the fourth quarter of 2023

Earnings for the fourth quarter of 2024 were $94.4 million, or $0.69 per diluted share, as compared to earnings of $79.4 million, or $0.59 per diluted share, for the fourth quarter of 2023.

Net interest income for the fourth quarter of 2024 was $232.6 million, an increase of $2.9 million, or 1%, from the fourth quarter of 2023. Tax-equivalent net interest income for the fourth quarter of 2024 increased $2.8 million, or 1%, from the fourth quarter of 2023. The increase in net interest income and tax-equivalent net interest income was primarily due to an increase in average short-term investments, a decrease in average long-term borrowings, and loan growth. This increase in net interest income and tax-equivalent net interest income was partially offset by a lower yield on average short-term investments, an increase in average interest-bearing deposits, and a decrease in average investment securities. Average earning assets for the fourth quarter of 2024 increased $812.0 million, or 3%, from the fourth quarter of 2023 due to a $987.8 million increase in average short-term investments and a $418.0 million increase in average net loans and loans held for sale partially offset by a $593.7 million decrease in average investment securities. Average long-term borrowings decreased $854.1 million, or 61%, from the fourth quarter of 2023. The yield on average short-term investments decreased 78 basis points from the fourth quarter of 2023. Average interest-bearing deposits increased $1.5 billion, or 9%, from the fourth quarter of 2023. The net interest margin for the fourth quarter of 2024 and 2023 was 3.49% and 3.55%, respectively.

The provision for credit losses was $6.7 million for the fourth quarter of 2024 as compared to $6.9 million for the fourth quarter of 2023.

Noninterest income for the fourth quarter of 2024 was $29.3 million, which was a decrease of $4.4 million, or 13%, from the fourth quarter of 2023. This decrease in noninterest income was driven by decreases in other noninterest income of $3.3 million and income from mortgage banking activities of $2.4 million partially offset by an increase in income from bank-owned life insurance (“BOLI”) of $1.4 million. Other noninterest income for the fourth quarter of 2023 included a $2.7 million gain from the payoff of a fixed rate commercial loan that had an associated interest rate swap derivative. The decrease in income from mortgage banking activities was mainly due to lower mortgage loan origination and sale volume. The increase in BOLI income was primarily due to the impact of higher market values of underlying investments and higher amounts of death benefits recognized in the fourth quarter of 2024.

Noninterest expense for the fourth quarter of 2024 decreased $18.1 million, or 12%, from the fourth quarter of 2023. The decrease in noninterest expense was driven by decreases in FDIC insurance expense of $12.7 million, the expense for the reserve for unfunded loan commitments of $4.0 million, and other noninterest expense of $4.0 million partially offset by increases in employee benefits of $3.9 million. FDIC insurance expense for the fourth quarter of 2023 included $12.0 million for the FDIC special assessment. The decrease in the expense for the reserve for unfunded loan commitments was mainly due to a decrease in loan commitments. The decrease in other noninterest expense was primarily driven by a decrease in certain general operating expenses and an impairment recognized during the fourth quarter of 2023 of trade name intangibles partially offset by merger-related expenses recognized during the fourth quarter of 2024. The increase in employee benefits was driven by higher health insurance costs and higher postretirement benefit costs.

 

3

United Bankshares, Inc. Announces…

January 24, 2025

Page Four

 

For the fourth quarter of 2024, income tax expense was $26.7 million as compared to $24.8 million for the fourth quarter of 2023. The increase was driven by higher pre-tax earnings partially offset by a lower effective tax rate. United’s effective tax rate was 22.0% and 23.8% for the fourth quarter of 2024 and fourth quarter of 2023, respectively. The effective tax rates for the fourth quarter of 2024 and 2023 reflect the impact of provision to return adjustments during each period.

Year of 2024 compared to the year of 2023

Earnings for the year of 2024 were $373.0 million, or $2.75 per diluted share, as compared to earnings of $366.3 million, or $2.71 per diluted share, for the year of 2023.

Net interest income for the year of 2024 decreased $8.9 million, or 1%, from the year of 2023. Tax-equivalent net interest income for the year of 2024 decreased $9.5 million, or 1%, from the year of 2023. The decrease in net interest income and tax-equivalent net interest income was primarily due to a higher average rate paid on deposits, an increase in average interest-bearing deposits, a decrease in average investment securities, 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, loan growth, a decrease in average long-term borrowings, and an increase in average short-term investments. The yield on average interest-bearing deposits increased 66 basis points from the year of 2023. Average interest-bearing deposits increased $1.4 billion from the year of 2023. Average investment securities decreased $790.7 million from the year of 2023. Acquired loan accretion income for the year of 2024 of $9.3 million was a decrease of $2.3 million from the year of 2023. The yield on average earning assets increased 33 basis points from the year of 2023 to 5.74% driven by an increase in the yield on average net loans and loans held for sale of 28 basis points. Average net loans and loans held for sale increased $683.7 million from the year of 2023. Average long-term borrowings decreased $906.1 million from the year of 2023. Average short-term investments increased $353.8 million from the year of 2023. The net interest margin for the year of 2024 and 2023 was 3.49% and 3.56%, respectively.

The provision for credit losses was $25.2 million for the year of 2024 as compared to $31.2 million for the year of 2023.

Noninterest income for the year of 2024 was $123.7 million, which was a decrease of $11.6 million, or 9%, from the year of 2023. Income from mortgage banking activities decreased $10.5 million from the year of 2023 mainly due to lower mortgage loan origination and sale volume. Mortgage loan servicing income for the year of 2024 of $9.0 million included a $7.1 million gain on the sale of MSRs while mortgage loan servicing income for the year of 2023 of $13.7 million included $8.3 million in gains on sales of MSRs with the remainder of the decrease due to lower serviced loan balances. Other noninterest income decreased $3.3 million from the year of 2023 primarily due to the aforementioned $2.7 million gain from the payoff of a fixed rate commercial loan that had an associated interest rate swap derivative in the fourth quarter of 2023. Fees from brokerage services increased $3.4 million from the year of 2023 primarily due to higher volume. BOLI income increased $2.9 million from the year of 2023 mainly due to higher market values of underlying investments and higher amounts of death benefits recognized during the year of 2024. Net losses on investment securities of $7.7 million for the year of 2024 included $16.0 million in losses on sales of AFS investment securities partially offset by a $6.9 million gain on the VISA share exchange and $1.7 million net unrealized fair value gains on equity securities. Net losses on investment securities of $7.6 million for the year of 2023 were driven by a $7.2 million loss on sale of AFS investment securities during the second quarter of 2023.

 

4

United Bankshares, Inc. Announces…

January 24, 2025

Page Five

 

Noninterest expense for the year of 2024 was $545.0 million, a decrease of $15.2 million, or 3%, from the year of 2023 driven by decreases in FDIC insurance expense of $10.6 million, the expense for the reserve for unfunded loan commitments of $8.3 million, mortgage loan servicing expense of $3.2 million, and amortization of intangibles of $1.5 million. These decreases in noninterest expense were partially offset by increases in employee benefits of $5.3 million and employee compensation of $3.8 million. The decrease in FDIC insurance expense was driven by $12.0 million in expense recognized for the FDIC special assessment in 2023 as compared to $1.5 million in 2024. The decrease in the expense for the reserve for unfunded loan commitments was driven by decreases in loan commitments. The decrease in mortgage loan servicing expense was driven by the aforementioned sales of MSRs in 2023 and 2024. The decrease in the amortization of intangibles was due to lower core deposit intangible balances. The increase in employee benefits was primarily due to higher postretirement benefit costs. The increase in employee compensation was driven by higher employee incentives and base salaries, as well as employee severance associated with the previously announced mortgage delivery channel consolidation partially offset by lower employee commissions and incentives related to mortgage banking production.

For the year of 2024, income tax expense was $91.6 million as compared to $97.5 million for the year of 2023. The decrease was primarily due to the impact of discrete tax benefits recognized in the second quarter of 2024 and the impact of higher provision to return adjustments recognized in the fourth quarter of 2023 as compared to the fourth quarter of 2024. United’s effective tax rate was 19.7% for the year of 2024 and 21.0% for the year of 2023.

Credit Quality

United’s asset quality continues to be sound. At December 31, 2024, non-performing loans (“NPLs”) were $73.4 million, or 0.34% of loans & leases, net of unearned income. Total non-performing assets (“NPAs”) were $73.7 million, including other real estate owned (“OREO”) of $327 thousand, or 0.25% of total assets at December 31, 2024. At September 30, 2024, NPLs were $65.2 million, or 0.30% of loans & leases, net of unearned income. Total NPAs were $65.4 million, including OREO of $169 thousand, or 0.22% of total assets at September 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 of December 31, 2024, the allowance for loan & lease losses was $271.8 million, or 1.25% of loans & leases, net of unearned income. At September 30, 2024, the allowance for loan & lease losses was $270.8 million, or 1.25% 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.

 

5

United Bankshares, Inc. Announces…

January 24, 2025

Page Six

 

Net charge-offs were $5.6 million, or 0.10% on an annualized basis as a percentage of average loans & leases, net of unearned income for the fourth quarter of 2024. 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 $2.5 million, or 0.05% on an annualized basis as a percentage of average loans & leases, net of unearned income for the fourth quarter of 2023. Net charge-offs were $12.5 million for the year of 2024 compared to $6.7 million for the year of 2023. Net charge-offs as a percentage of average loans & leases, net of unearned income were 0.06% and 0.03% for the years of 2024 and 2023, respectively.

Capital

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 16.5% at December 31, 2024, while estimated Common Equity Tier 1 capital, Tier 1 capital, and leverage ratios are 14.2%, 14.2%, and 11.7%, respectively. The December 31, 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 December 31, 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”.

 

6

United Bankshares, Inc. Announces…

January 24, 2025

Page Seven

 

Cautionary Statements

The Company is required under generally accepted accounting principles to evaluate subsequent events through the filing of its December 31, 2024 consolidated financial statements on Form 10-K. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of December 31, 2024 and will adjust amounts preliminarily reported, if necessary.

Use of non-GAAP Financial Measures

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

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

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

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

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

Forward-Looking Statements

In this report, we have made various statements regarding current expectations or forecasts of future events, which speak only as of the date the statements are made. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are also made from time-to-time in press releases and in oral statements made by the officers of the Company. Forward-looking statements can be identified by the use of the words “expect,” “may,” “could,” “intend,” “project,” “estimate,” “believe,” “anticipate,” and other words of similar meaning. Such forward-looking statements are based on assumptions and estimates, which although believed to be reasonable, may turn out to be incorrect. Therefore, undue reliance should not be placed upon these estimates and statements. United cannot assure that any of these statements, estimates, or beliefs will be realized and actual results may differ from those contemplated in these “forward-looking statements.” The following factors, among others, could cause the actual results of United’s operations to differ materially from its expectations: uncertainty in U.S. fiscal and monetary policies, including the interest rate policies of the Federal Reserve Board; volatility and disruptions in global capital and credit markets, interest rate, securities market and monetary supply fluctuations; increasing rates of inflation and slower growth rates; the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations, including those involving the Federal Reserve, FDIC, and CFPB; the effect of changes in the level of checking or savings account deposits on United’s funding costs and net interest margin; future provisions for credit losses on loans and debt securities; changes in nonperforming assets; risks relating to the merger with Piedmont, including the successful integration of operations of Piedmont; competition; changes in legislation or regulatory requirements; and the impact of natural disasters, extreme weather events, military conflict (including the Russia/Ukraine conflict, the conflict in Israel and surrounding areas, the possible expansion of such conflicts and potential geopolitical consequences), terrorism or other geopolitical events. For more information about factors that could cause actual results to differ materially from United’s expectations, refer to its reports filed with the Securities and Exchange Commission, including the discussion under “Risk Factors” in the Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov. Further, any forward-looking statement speaks only as of the date on which it is made, and United undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. You are advised to consult further disclosures United may make on related subjects in our filings with the SEC.

 

7

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

		Three Months Ended												Year Ended
EARNINGS SUMMARY:		December 2024				December 2023				September 2024				December 2024				December 2023
Interest income		$	376,034			$	369,175			$	382,723			$	1,502,121			$	1,401,320
Interest expense			143,426				139,485				152,467				591,053				481,396
Net interest income			232,608				229,690				230,256				911,068				919,924
Provision for credit losses			6,691				6,875				6,943				25,153				31,153
Noninterest income			29,318				33,675				31,942				123,695				135,258
Noninterest expense			134,176				152,287				135,339				545,031				560,224
Income before income taxes			121,059				104,203				119,916				464,579				463,805
Income taxes			26,651				24,813				24,649				91,583				97,492
Net income		$	94,408			$	79,390			$	95,267			$	372,996			$	366,313
PER COMMON SHARE:
Net income:
Basic		$	0.70			$	0.59			$	0.70			$	2.76			$	2.72
Diluted			0.69				0.59				0.70				2.75				2.71
Cash dividends		$	0.37			$	0.37				0.37				1.48				1.45
Book value											36.74				36.89				35.36
Closing market price										$	37.10			$	37.55			$	37.55
Common shares outstanding:
Actual at period end, net of treasury shares											135,220,770				135,346,628				134,949,063
Weighted average-basic			135,235,641				134,691,360				135,158,476				134,947,592				134,505,058
Weighted average-diluted			135,732,069				134,984,970				135,504,911				135,225,417				134,753,820
FINANCIAL RATIOS:
Return on average assets			1.25	%			1.08	%			1.28	%			1.26	%			1.25	%
Return on average shareholders’ equity			7.48	%			6.70	%			7.72	%			7.61	%			7.87	%
Return on average tangible equity (non-GAAP)(1)			12.03	%			11.27	%			12.59	%			12.43	%			13.33	%
Average equity to average assets			16.72	%			16.11	%			16.64	%			16.57	%			15.89	%
Net interest margin			3.49	%			3.55	%			3.52	%			3.49	%			3.56	%
PERIOD END BALANCES:						December 31 2024				December 31 2023				September 30 2024				June 30 2024
Assets						$	30,023,545			$	29,926,482			$	29,863,262			$	29,957,418
Earning assets							26,650,661				26,623,652				26,461,342				26,572,087
Loans & leases, net of unearned income							21,673,493				21,359,084				21,621,968				21,598,727
Loans held for sale							44,360				56,261				46,493				66,475
Investment securities							3,259,296				4,125,754				3,538,415				3,650,582
Total deposits							23,961,859				22,819,319				23,828,345				23,066,440
Shareholders’ equity							4,993,223				4,771,240				4,967,820				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

(In Thousands Except for Per Share Data)

 

Consolidated Statements of Income		Three Months Ended																Year Ended
		December				December				September				June				December				December
		2024				2023				2024				2024				2024				2023
Interest & Loan Fees Income (GAAP)		$	376,034			$	369,175			$	382,723			$	374,184			$	1,502,121			$	1,401,320
Tax equivalent adjustment			795				866				828				867				3,362				4,014
Interest & Fees Income (FTE) (non-GAAP)			376,829				370,041				383,551				375,051				1,505,483				1,405,334
Interest Expense			143,426				139,485				152,467				148,469				591,053				481,396
Net Interest Income (FTE) (non-GAAP)			233,403				230,556				231,084				226,582				914,430				923,938
Provision for Credit Losses			6,691				6,875				6,943				5,779				25,153				31,153
Noninterest Income:
Fees from trust services			5,156				4,508				4,904				4,744				19,450				18,318
Fees from brokerage services			4,978				4,360				5,073				4,959				20,277				16,911
Fees from deposit services			9,473				9,107				9,413				9,326				37,183				37,076
Bankcard fees and merchant discounts			2,056				1,923				1,775				1,355				7,059				7,013
Other charges, commissions, and fees			868				924				890				869				3,485				3,861
Income from bank-owned life insurance			3,226				1,855				3,032				2,549				11,225				8,330
Income from mortgage banking activities			2,314				4,746				4,544				3,901				16,057				26,593
Mortgage loan servicing income			—				783				7,385				783				8,957				13,746
Net (losses) gains on investment securities			(688	)			276				(6,715	)			(218	)			(7,720	)			(7,646	)
Other noninterest income			1,935				5,193				1,641				1,955				7,722				11,056
Total Noninterest Income			29,318				33,675				31,942				30,223				123,695				135,258
Noninterest Expense:
Employee compensation			58,343				57,829				58,481				58,501				234,618				230,809
Employee benefits			13,719				9,771				13,084				12,147				53,621				48,368
Net occupancy			11,070				11,690				11,271				11,400				46,084				46,426
Data processing			7,437				7,261				7,456				7,290				29,646				29,395
Amortization of intangibles			910				1,279				909				910				3,639				5,116
OREO expense			45				188				104				268				576				1,355
Net losses (gains) on the sale of OREO properties			10				(126	)			(34	)			32				(75	)			(60	)
Equipment expense			7,474				7,539				7,811				7,548				29,686				29,731
FDIC insurance expense			3,884				16,621				4,338				5,058				19,735				30,376
Mortgage loan servicing expense and impairment			—				962				403				1,011				2,429				5,596
Expense for the reserve for unfunded loan commitments			(3,062	)			940				(2,766	)			(2,177	)			(9,795	)			(1,483	)
Other noninterest expense			34,346				38,333				34,282				32,786				134,867				134,595
Total Noninterest Expense			134,176				152,287				135,339				134,774				545,031				560,224
Income Before Income Taxes (FTE) (non-GAAP)			121,854				105,069				120,744				116,252				467,941				467,819
Tax equivalent adjustment			795				866				828				867				3,362				4,014
Income Before Income Taxes (GAAP)			121,059				104,203				119,916				115,385				464,579				463,805
Taxes			26,651				24,813				24,649				18,878				91,583				97,492
Net Income		$	94,408			$	79,390			$	95,267			$	96,507			$	372,996			$	366,313
MEMO: Effective Tax Rate			22.01	%			23.81	%			20.56	%			16.36	%			19.71	%			21.02	%

 

9

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

Consolidated Balance Sheets
		December 2024				December 2023				December 31				December 31				September 30
		Q-T-D Average				Q-T-D Average				2024				2023				2024
Cash & Cash Equivalents		$	2,036,079			$	1,073,118			$	2,292,244			$	1,598,943			$	1,908,832
Securities Available for Sale			3,245,428				3,710,447				2,959,719				3,786,377				3,239,501
Less: Allowance for credit losses			—				—				—				—				—
Net available for sale securities			3,245,428				3,710,447				2,959,719				3,786,377				3,239,501
Securities Held to Maturity			1,020				1,020				1,020				1,020				1,020
Less: Allowance for credit losses			(19	)			(18	)			(18	)			(17	)			(19	)
Net held to maturity securities			1,001				1,002				1,002				1,003				1,001
Equity Securities			9,012				8,598				21,058				8,945				9,082
Other Investment Securities			288,453				311,922				277,517				329,429				288,831
Total Securities			3,543,894				4,031,969				3,259,296				4,125,754				3,538,415
Total Cash and Securities			5,579,973				5,105,087				5,551,540				5,724,697				5,447,247
Loans held for sale			45,143				53,499				44,360				56,261				46,493
Commercial Loans & Leases			16,093,104				15,510,282				16,152,453				15,535,204				16,015,679
Mortgage Loans			4,709,802				4,576,046				4,702,720				4,728,374				4,722,997
Consumer Loans			873,961				1,156,339				825,325				1,109,607				892,377
Gross Loans			21,676,867				21,242,667				21,680,498				21,373,185				21,631,053
Unearned income			(8,862	)			(16,722	)			(7,005	)			(14,101	)			(9,085	)
Loans & Leases, net of unearned income			21,668,005				21,225,945				21,673,493				21,359,084				21,621,968
Allowance for Loan & Lease Losses			(270,751	)			(255,032	)			(271,844	)			(259,237	)			(270,767	)
Net Loans			21,397,254				20,970,913				21,401,649				21,099,847				21,351,201
Mortgage Servicing Rights			—				4,573				—				4,554				—
Goodwill			1,888,889				1,888,889				1,888,889				1,888,889				1,888,889
Other Intangibles			9,446				14,569				8,866				12,505				9,776
Operating Lease Right-of-Use Asset			82,505				80,622				81,742				86,986				82,114
Other Real Estate Owned			190				2,885				327				2,615				169
Bank-Owned Life Insurance			495,839				484,987				497,181				486,895				495,784
Other Assets			513,487				558,122				548,991				563,233				541,589
Total Assets		$	30,012,726			$	29,164,146			$	30,023,545			$	29,926,482			$	29,863,262
MEMO: Interest-earning Assets		$	26,687,835			$	25,875,812			$	26,650,661			$	26,623,652			$	26,461,342
Interest-bearing Deposits		$	17,871,685			$	16,414,152			$	17,826,446			$	16,670,239			$	17,790,247
Noninterest-bearing Deposits			6,099,264				6,175,309				6,135,413				6,149,080				6,038,098
Total Deposits			23,970,949				22,589,461				23,961,859				22,819,319				23,828,345
Short-term Borrowings			180,070				198,453				176,090				196,095				181,969
Long-term Borrowings			540,247				1,394,361				540,420				1,789,103				540,091
Total Borrowings			720,317				1,592,814				716,510				1,985,198				722,060
Operating Lease Liability			87,935				85,063				86,771				92,885				88,464
Other Liabilities			214,456				199,128				265,182				257,840				256,573
Total Liabilities			24,993,657				24,466,466				25,030,322				25,155,242				24,895,442
Preferred Equity			—				—				—				—				—
Common Equity			5,019,069				4,697,680				4,993,223				4,771,240				4,967,820
Total Shareholders’ Equity			5,019,069				4,697,680				4,993,223				4,771,240				4,967,820
Total Liabilities & Equity		$	30,012,726			$	29,164,146			$	30,023,545			$	29,926,482			$	29,863,262
MEMO: Interest-bearing Liabilities		$	18,592,002			$	18,006,966			$	18,542,956			$	18,655,437			$	18,512,307

 

10

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

		Three Months Ended																Year Ended
		December				December				September				June				December				December
Quarterly/Year-to-Date Share Data:		2024				2023				2024				2024				2024				2023
Earnings Per Share:
Basic		$	0.70			$	0.59			$	0.70			$	0.71			$	2.76			$	2.72
Diluted		$	0.69			$	0.59			$	0.70			$	0.71			$	2.75			$	2.71
Common Dividend Declared Per Share		$	0.37			$	0.37			$	0.37			$	0.37			$	1.48			$	1.45
High Common Stock Price		$	44.43			$	38.74			$	39.93			$	36.08			$	44.43			$	42.45
Low Common Stock Price		$	35.31			$	25.35			$	31.47			$	30.68			$	30.68			$	25.35
Average Shares Outstanding (Net of Treasury Stock):
Basic			135,235,641				134,691,360				135,158,476				135,137,901				134,947,592				134,505,058
Diluted			135,732,069				134,984,970				135,504,911				135,314,785				135,225,417				134,753,820
Common Dividends		$	50,259			$	50,066			$	50,213			$	50,204			$	200,889			$	196,120
Dividend Payout Ratio			53.24	%			63.06	%			52.71	%			52.02	%			53.86	%			53.54	%

		December 31				December 31				September 30				June 30
EOP Share Data:		2024				2023				2024				2024
Book Value Per Share		$	36.89			$	35.36			$	36.74			$	35.92
Tangible Book Value Per Share (non-GAAP) (1)		$	22.87			$	21.27			$	22.70			$	21.87
52-week High Common Stock Price		$	44.43			$	42.45			$	39.93			$	38.74
Date			11/25/24				2/3/23				7/31/24				12/14/23
52-week Low Common Stock Price		$	30.68			$	25.35			$	25.35			$	25.35
Date			06/11/24				10/24/23				10/24/23				10/24/23
EOP Shares Outstanding (Net of Treasury Stock):			135,346,628				134,949,063				135,220,770				135,195,704
Memorandum Items:
Employees (full-time equivalent)			2,591				2,736				2,651				2,644
Note:
(1) Tangible Book Value Per Share:
Total Shareholders’ Equity (GAAP)		$	4,993,223			$	4,771,240			$	4,967,820			$	4,856,633
Less: Total Intangibles			(1,897,755	)			(1,901,394	)			(1,898,665	)			(1,899,574	)
Tangible Equity (non-GAAP)		$	3,095,468			$	2,869,846			$	3,069,155			$	2,957,059
÷ EOP Shares Outstanding (Net of Treasury Stock)			135,346,628				134,949,063				135,220,770				135,195,704
Tangible Book Value Per Share (non-GAAP)		$	22.87			$	21.27			$	22.70			$	21.87

 

11

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

		Three Months Ended December 2024												Three Months Ended December 2023												Three Months Ended September 2024
Selected Average Balances and Yields:		Average								Average				Average								Average				Average								Average
		Balance				Interest(1)				Rate(1)				Balance				Interest(1)				Rate(1)				Balance				Interest(1)				Rate(1)
ASSETS:
Earning Assets:
Federal funds sold and securities purchased under agreements to resell and other short-term investments		$	1,807,207			$	21,876				4.82	%		$	819,431			$	11,570				5.60	%		$	1,387,462			$	19,241				5.52	%
Investment securities:
Taxable			3,242,979				29,244				3.61	%			3,836,498				35,710				3.72	%			3,218,258				30,797				3.83	%
Tax-exempt			195,252				1,374				2.81	%			195,471				1,471				3.01	%			205,080				1,461				2.85	%
Total securities			3,438,231				30,618				3.56	%			4,031,969				37,181				3.69	%			3,423,338				32,258				3.77	%
Loans and loans held for sale, net of unearned income (2)			21,713,148				324,335				5.95	%			21,279,444				321,290				6.00	%			21,588,333				332,052				6.12	%
Allowance for loan losses			(270,751	)											(255,032	)											(267,457	)
Net loans and loans held for sale			21,442,397								6.02	%			21,024,412								6.07	%			21,320,876								6.20	%
Total earning assets			26,687,835			$	376,829				5.62	%			25,875,812			$	370,041				5.68	%			26,131,676			$	383,551				5.85	%
Other assets			3,324,891												3,288,334												3,371,648
TOTAL ASSETS		$	30,012,726											$	29,164,146											$	29,503,324
LIABILITIES:
Interest-Bearing Liabilities:
Interest-bearing deposits		$	17,871,685			$	135,690				3.02	%		$	16,414,152			$	122,132				2.95	%		$	17,399,368			$	143,313				3.28	%
Short-term borrowings			180,070				1,630				3.60	%			198,453				1,998				3.99	%			191,954				2,048				4.24	%
Long-term borrowings			540,247				6,106				4.50	%			1,394,361				15,355				4.37	%			748,608				7,106				3.78	%
Total interest-bearing liabilities			18,592,002				143,426				3.07	%			18,006,966				139,485				3.07	%			18,339,930				152,467				3.31	%
Noninterest-bearing deposits			6,099,264												6,175,309												5,957,184
Accrued expenses and other liabilities			302,391												284,191												297,344
TOTAL LIABILITIES			24,993,657												24,466,466												24,594,458
SHAREHOLDERS’ EQUITY			5,019,069												4,697,680												4,908,866
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	30,012,726											$	29,164,146											$	29,503,324
NET INTEREST INCOME						$	233,403											$	230,556											$	231,084
INTEREST RATE SPREAD											2.55	%											2.61	%											2.54	%
NET INTEREST MARGIN											3.49	%											3.55	%											3.52	%

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

(In Thousands Except for Per Share Data)

 

		Year Ended December 2024												Year Ended December 2023
Selected Average Balances and Yields:		Average								Average				Average								Average
		Balance				Interest(1)				Rate(1)				Balance				Interest(1)				Rate(1)
ASSETS:
Earning Assets:
Federal funds sold and securities purchased under agreements to resell and other short-terminvestments		$	1,253,832			$	66,207				5.28	%		$	900,077			$	47,069				5.23	%
Investment securities:
Taxable			3,424,113				128,731				3.76	%			4,125,467				144,420				3.50	%
Tax-exempt			205,427				5,796				2.82	%			294,802				8,411				2.85	%
Total securities			3,629,540				134,527				3.71	%			4,420,269				152,831				3.46	%
Loans and loans held for sale, net of unearned income (2)			21,612,707				1,304,749				6.04	%			20,909,248				1,205,434				5.77	%
Allowance for loan losses			(265,171	)											(245,386	)
Net loans and loans held for sale			21,347,536								6.11	%			20,663,862								5.83	%
Total earning assets			26,230,908			$	1,505,483				5.74	%			25,984,208			$	1,405,334				5.41	%
Other assets			3,349,451												3,311,450
TOTAL ASSETS		$	29,580,359											$	29,295,658
LIABILITIES:
Interest-Bearing Liabilities:
Interest-bearing deposits		$	17,171,286			$	539,805				3.14	%		$	15,782,761			$	391,094				2.48	%
Short-term borrowings			195,406				7,966				4.08	%			182,936				6,449				3.53	%
Long-term borrowings			1,017,823				43,282				4.25	%			1,923,924				83,853				4.36	%
Total interest-bearing liabilities			18,384,515				591,053				3.21	%			17,889,621				481,396				2.69	%
Noninterest-bearing deposits			5,994,009												6,475,051
Accrued expenses and other liabilities			300,766												276,883
TOTAL LIABILITIES			24,679,290												24,641,555
SHAREHOLDERS’ EQUITY			4,901,069												4,654,103
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	29,580,359											$	29,295,658
NET INTEREST INCOME						$	914,430											$	923,938
INTEREST RATE SPREAD											2.53	%											2.72	%
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