United Bankshares Inc. Sees Steady Earnings In Q3 2019
Want to get a jump-start on upcoming deals? Meet the major D.C. players at one of our upcoming events!
United Bankshares Inc. continues to report strong earnings throughout 2019.
Earnings for Q3 2019 were $66M, up from $64.4M in Q3 2018. Diluted earnings per share were $0.65 for Q3 2019 as compared to diluted earnings per share of $0.62 for Q3 2018.
Earnings for the first nine months of 2019 were a record $196.8M, an increase from earnings of $192.4M for the first nine months of 2018. Diluted earnings per share were $1.93 for the first nine months of 2019 as compared to $1.83 for the same period last year.
“Our earnings continue to be strong, achieving record net income for the first nine months of 2019,” United Bank Chairman and CEO Richard M. Adams said.
Q3 2019 results produced an annualized return on average assets of 1.33%, an annualized return on average equity of 7.79% and an annualized return on average tangible equity of 14.16%. For the first nine months of 2019, United’s annualized return on average assets was 1.35%, while the annualized return on average equity was 7.93% and the annualized return on average tangible equity was 14.56%.
United’s annualized returns on average assets, average equity and average tangible equity were 1.34%, 7.83% and 14.65%, respectively, for Q3 2018, while the annualized returns on average assets, average equity and average tangible equity were 1.37%, 7.86% and 14.69%, respectively, for the first nine months of 2018.
Net interest income for Q3 2019 was $141.9M, which was a decrease of $6.9M, or 5%, from Q3 2018. Tax-equivalent net interest income, which adjusts for the tax-favored status of income from certain loans and investments, for Q3 2019 was $142.8M, a decrease of $7M, or 5%, from Q3 2018, due mainly to an increase of 37 basis points in the average cost of funds as compared to Q3 2018, due to higher market interest rates.
In addition, the average yield on earning assets declined 4 basis points from Q3 2018 due in large part to a decline in loan accretion on acquired loans of $4.4M or 38%. Loan accretion on acquired loans was $7.2M and $11.6M for Q3 2019 and 2018, respectively. Partially offsetting these decreases to tax-equivalent net interest income for Q3 2019 was an increase in average earning assets of $609.4M, or 4%. The increase in average earning assets was due mainly to increases of $365.3M or 16% and $325.1M, or 2%, in average investment securities and average loans, respectively.
United’s asset quality continues to be sound. At Sept. 30, nonperforming loans were $140.3M, or 1.03% of loans, net of unearned income, a decline from nonperforming loans of $142.8M, or 1.06% of loans, net of unearned income, at the end of 2018. As of Sept. 30, the allowance for loan losses was $77.1M or 0.57% of loans, net of unearned income, which was comparable to $76.7M or 0.57% of loans, net of unearned income, on Dec. 31. Total nonperforming assets of $158.7M, including OREO of $18.4M at Sept. 30, represented 0.80% of total assets as compared to nonperforming assets of $159.7M or 0.83% at the end of last year.
United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio was 14.4% as of Sept. 30, while its estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 12.3%, 12.3% and 10.2%, respectively. The regulatory requirements for a well-capitalized financial institution are a risk-based capital ratio of 10%, a Common Equity Tier 1 capital ratio of 6.5%, a Tier 1 capital ratio of 8% and a leverage ratio of 5%.
At the end of the third quarter, United had consolidated assets of approximately $19.8B.
United is the parent company of United Bank, the largest community bank headquartered in the D.C. Metro region. United Bank, which comprises 139 full-service banking offices and 16 George Mason Mortgage LLC locations, is located throughout Virginia, West Virginia, Maryland, North Carolina, South Carolina, Ohio, Pennsylvania and Washington, D.C. United’s stock is traded on the Nasdaq Global Select Market under the quotation symbol "UBSI."
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.