United Bankshares Inc. Announces Record Earnings For 2018
United Bankshares Inc. reported record earnings for 2018.
Earnings for Q4 2018 were $64M, or $0.62 per diluted share, as compared to earnings of $18M or $0.17 per diluted share for Q4 2017. Earnings for 2018 were a record $256.3M, or $2.45 per diluted share, as compared to earnings of $150.6M or $1.54 per diluted share for the year before.
“2018 was a banner year for United Bankshares in many ways,” United Chairman and CEO Richard M. Adams said. “We increased earnings before income taxes to a record $327M. Our employee community volunteer program was recognized by the American Bankers Association as one of the strongest in the nation. We increased dividends to our shareholders for the 45th consecutive year. This is a record only one other major banking company in the U.S. has been able to achieve.”
Q4 2018 results produced an annualized return on average assets of 1.3% and an annualized return on average equity of 7.8%, respectively. For the year, the bank's average return on assets was 1.4% and on equity was 7.8%. United’s annualized returns on average assets and average equity were 0.38% and 2.17%, respectively, for Q4 2017 while the returns on average assets and average equity were 0.85% and 5.09%, respectively, in 2017.
The results for Q4 2017 included additional income tax expense of $37.7M or $0.36 per diluted share related to the estimated impact of the enactment of the Tax Cuts and Jobs Act. The results for the year of 2017 were impacted by $0.39 per diluted share for the additional income tax expense of $37.7M related to the TCJA.
On April 21, 2017, United completed its acquisition of Tysons-based Cardinal Financial Corp. As a result of the Cardinal acquisition, 2018 was impacted by increased levels of average balances, income and expense as compared to 2017.
United also consolidated its banking subsidiaries during Q4 2017, which included $1.8M in quarterly merger-related expenses and $26.8M for the year, when factoring the Cardinal acquisition and consolidation of subsidiaries.
Net interest income for Q4 2018 was $146.7M, which was down $8.1M or 5% from Q4 2017. That $8.1M decrease was the result of an increase in interest income by $11M. Total interest expense increased $19.1M from Q4 2017.
Year after year, United’s asset quality continues to improve. As of Dec. 31, nonperforming loans were $142.8M, or 1.06% of loans, and net of unearned income was down from nonperforming loans of $168.7M, or 1.3% of loans.
Total nonperforming assets of $159.7M, including OREO of $16.9M as of Dec. 31 represented 0.83% of total assets, down from nonperforming assets of 1.01% of total assets at the close of the previous year.
This feature was produced in collaboration between Bisnow Branded Content and United Bank. Bisnow news staff was not involved in the production of this content.