EX-99.1

EX-99.1 2 d259172dex991.htm EX-99.1 EX-99.1

EXHIBIT 99.1

News Release

LOGO


For Immediate Release		Contact: W. Mark Tatterson
January 27, 2022		Chief Financial Officer
		(800) 445-1347 ext. 8716

United Bankshares, Inc. Announces Record Earnings

for the Year 2021

WASHINGTON, D.C. and CHARLESTON, WV— United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today reported earnings for the fourth quarter and the year of 2021. Earnings for the fourth quarter of 2021 were $73.9 million, or $0.56 per diluted share, as compared to earnings of $92.4 million, or $0.71 per diluted share, for the fourth quarter of 2020. Earnings for the year of 2021 were a record $367.7 million as compared to earnings of $289.0 million for the year of 2020. Earnings per diluted share for the year of 2021 were a record $2.83 as compared to earnings per diluted share of $2.40 for the year of 2020.

Fourth quarter 2021 results produced annualized returns on average assets, average equity and average tangible equity, a non-GAAP measure, of 1.04%, 6.44% and 10.87%, respectively, compared to annualized returns on average assets, average equity, and average tangible equity of 1.41%, 8.51% and 14.72%, respectively, for the fourth quarter of 2020. For the year of 2021, United’s returns on average assets, average equity and average tangible equity were 1.35%, 8.30% and 14.18%, respectively, compared to returns on average assets, average equity, and average tangible equity of 1.20%, 7.30% and 12.90%, respectively, for the year of 2020.

“2021 was one of the most successful years in our Company’s history,” stated Richard M. Adams, United’s Chairman of the Board and Chief Executive Officer. “We achieved record pre-tax earnings of $463 million, increased earnings per diluted share 18%, and outperformed peer profitability. We increased our dividend for the 48^th consecutive year and successfully completed the acquisition of Community Bankers Trust Corporation, the 33^rd acquisition of the current administration.”

On December 3, 2021, United completed its acquisition of Community Bankers Trust Corporation (“Community Bankers Trust”). The results of operations for Community Bankers Trust are included in the consolidated results of operations from the date of acquisition. As a result of the acquisition, the fourth quarter and year of 2021 were impacted by approximately one month of increased levels of average balances, income, and expense as compared to the fourth quarter and year of 2020 and as compared to the third quarter of 2021.

As a result of the acquisition of Carolina Financial Corporation (“Carolina Financial”) on May 1, 2020, the year of 2021 reflected higher average balances, income, and expense as compared to the year of 2020.

The fourth quarter and year of 2021 included merger-related expenses associated with the Community Bankers Trust acquisition of $20.4 million and $21.4 million, respectively, compared to $558 thousand and $54.2 million of merger-related expenses associated with the Carolina Financial acquisition for the fourth quarter and year of 2020.

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Net Interest Income and Net Interest Margin

Net interest income for the fourth quarter of 2021 was $183.7 million, which was a decrease of $8.3 million, or 4%, from the fourth quarter of 2020. Tax-equivalent net interest income, a non-GAAP measure which adjusts for the tax-favored status of income from certain loans and investments, for the fourth quarter of 2021 also decreased $8.3 million, or 4%, from the fourth quarter of 2020 to $184.7 million. The decrease in net interest income and tax-equivalent net interest income was primarily due to lower accretion on acquired loans and lower fee income from Paycheck Protection Program (“PPP”) loans. A decrease in interest income due to lower acquired loan accretion income and PPP loan fee income as well as due to a change in the mix of interest earning assets was partially offset by lower interest expense on deposits and borrowings driven by rate repricing. The net interest spread for the fourth quarter of 2021 decreased 32 basis points from the fourth quarter of 2020 due to a 49 basis point decrease in the average yield on earning assets partially offset by a 17 basis point decrease in the average cost of funds. Loan accretion on acquired loans was $6.2 million and $10.9 million for the fourth quarter of 2021 and 2020, respectively, a decrease of $4.7 million. Net PPP loan fee income of $5.0 million was recognized in the fourth quarter of 2021 driven primarily by loan forgiveness, as compared to $7.0 million for the fourth quarter of 2020. Average earning assets for the fourth quarter of 2021 increased $1.8 billion, or 8%, from the fourth quarter of 2020 due to a $1.8 billion increase in average short-term investments and a $833.6 million increase in average investment securities, partially offset by a $862.0 million decrease in average net loans and loans held for sale mainly driven by a decline in PPP loan balances. The net interest margin of 2.94% for the fourth quarter of 2021 was a decrease of 39 basis points from the net interest margin of 3.33% for the fourth quarter of 2020.

Net interest income for the year of 2021 was $742.7 million, which was an increase of $53.0 million, or 8%, from the year of 2020. Tax-equivalent net interest income for the year of 2021 was $747.0 million, an increase of $53.3 million, or 8%, from the year of 2020. The increase in net interest income and tax-equivalent net interest income was primarily due to lower interest expense on deposits and borrowings as well as due to an increase in average earning assets from the Carolina Financial acquisition and PPP loan fee income, partially offset by lower acquired loan accretion income. The net interest spread for the year of 2021 decreased 2 basis points from the year of 2020 due to a 45 basis point decrease in the average yield on earning assets partially offset by a 43 basis point decrease in the average cost of funds. Average earning assets for the year of 2021 increased $2.8 billion, or 13%, from the year of 2020 due to a $1.7 billion increase in average short-term investments, a $628.0 million increase in average investment securities and a $523.9 million increase in average net loans and loans held for sale. Net PPP loan fee income of $33.2 million was recognized in the year of 2021 driven primarily by loan forgiveness, as compared to $16.3 million for the year of 2020. Loan accretion on acquired loans was $33.9 million and $41.8 million for the year of 2021 and 2020, respectively, a decrease of $7.9 million. The net interest margin of 3.09% for the year of 2021 was a decrease of 15 basis points from the net interest margin of 3.24% for the year of 2020.

On a linked-quarter basis, net interest income for the fourth quarter of 2021 increased $2.1 million, or 1%, from the third quarter of 2021. Tax-equivalent net interest income for the fourth quarter of 2021 also increased $2.1 million, or 1%, from the third quarter of 2021. The increase in net interest income and tax-equivalent net interest income was primarily due to an increase in average earning assets due to organic growth and the Community Bankers Trust acquisition as well as lower interest expense on deposits and borrowings partially offset by lower acquired loan accretion and PPP loan fee income. Average earning assets increased approximately $573.2 million, or 2%, from the third quarter of 2021 due to increases in average net loans and

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loans held for sale of $456.0 million and average securities of $333.4 million partially offset by a decrease in average short-term investments of $216.2 million. The net interest spread for the fourth quarter of 2021 of 2.82% decreased 1 basis point from the third quarter of 2021 due to a 5 basis point decrease in the average yield on earning assets partially offset by a 4 basis point decrease in the average cost of funds. Net PPP loan fee income for the fourth quarter of 2021 decreased $2.8 million from the third quarter of 2021 to $5.0 million. Loan accretion on acquired loans decreased $1.9 million from the third quarter of 2021 to $6.2 million for the fourth quarter of 2021. The net interest margin of 2.94% for the fourth quarter of 2021 was a decrease of 4 basis points from the net interest margin of 2.98% for the third quarter of 2021.

Credit Quality

United’s asset quality continues to be sound. At December 31, 2021, nonperforming loans were $90.8 million, or 0.50% of loans & leases, net of unearned income, down from $132.2 million, or 0.75% of loans & leases, net of unearned income, at December 31, 2020. Total nonperforming assets of $105.6 million, including other real estate owned (“OREO”) of $14.8 million at December 31, 2021, represented 0.36% of total assets as compared to nonperforming assets of $154.8 million, including OREO of $22.6 million, or 0.59% of total assets at December 31, 2020.

The provision for credit losses was a net benefit of $7.4 million and $24.0 million for the fourth quarter and year of 2021, respectively, while the provision for credit losses was an expense of $16.8 million and $106.6 million, respectively, for the fourth quarter and year of 2020. The quarter and year of 2021 included a provision for loan losses of $12.3 million recorded on purchased non-credit deteriorated (“non-PCD”) loans from Community Bankers Trust. The year of 2020 included a provision for loan losses of $29.0 million recorded on non-PCD loans from Carolina Financial. The decrease in the provision in relation to the prior year quarter and year of 2020 was also driven by the impact of better performance trends within the loan portfolio and improvements in the reasonable and supportable forecasts of future macroeconomic conditions on the estimate of expected credit losses under CECL. On a linked-quarter basis, the provision for credit losses for the fourth quarter of 2021 was a net benefit of $7.4 million compared to a net benefit of $7.8 million for the third quarter of 2021.

As of December 31, 2021, the allowance for loan losses was $216.0 million, or 1.20% of loans & leases, net of unearned income, as compared to $235.8 million, or 1.34% of loans & leases, net of unearned income, at December 31, 2020. Net charge-offs were $125 thousand for the fourth quarter of 2021 compared to net charge-offs of $6.9 million for the fourth quarter of 2020. Net charge-offs were $8.7 million for the year of 2021 compared to net charge-offs of $23.6 million for the year of 2020. Annualized net charge-offs as a percentage of average loans & leases, net of unearned income were 0.003% and 0.05% for the fourth quarter and year of 2021, respectively, compared to annualized net charge-offs of 0.16% and 0.14% for the fourth quarter and year of 2020. Net recoveries were $1.2 million for the third quarter of 2021.

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Noninterest Income

Noninterest income for the fourth quarter of 2021 was $54.0 million, which was a decrease of $40.0 million, or 43%, from the fourth quarter of 2020 primarily driven by a $43.5 million decrease in income from mortgage banking activities due primarily to lower mortgage loan origination and sale volume and a lower margin on loans sold in the secondary market. Partially offsetting the decreases in noninterest income were increases in fees from deposit services of $1.0 million, fees from trust services of $742 thousand and fees from brokerage services of $574 thousand.

Noninterest income for the year of 2021 was $278.1 million, which was a decrease of $76.7 million, or 22%, from the year of 2020. The decrease was driven primarily by a $94.4 million decrease in income from mortgage banking activities due primarily to a lower loan pipeline valuation and a lower margin on loans sold in the secondary market. The year of 2021 included fees from deposit services of $38.7 million, an increase of $3.9 million from the year of 2020, fees from trust services of $16.6 million, an increase of $2.6 million from the year of 2020 and fees from brokerage services of $15.6 million, an increase of $3.8 million from the year of 2020. Mortgage loan servicing income was $9.6 million for the year of 2021 compared to $6.2 million for the year of 2020, an increase of $3.4 million due to the Carolina Financial acquisition. The year of 2020 also included a gain on the sale of a bank premises of $2.2 million.

On a linked-quarter basis, noninterest income for the fourth quarter of 2021 decreased $14.6 million, or 21%, from the third quarter of 2021 primarily due to a decrease of $14.7 million in income from mortgage banking activities due primarily to lower mortgage loan origination and sale volume and a lower loan pipeline valuation.

Noninterest Expense

Noninterest expense for the fourth quarter of 2021 was $151.8 million, a decrease of $4.3 million, or 3%, from the fourth quarter of 2020. Employee compensation decreased $5.5 million due to lower employee commissions, incentives and overtime related to mortgage banking production partially offset by $2.5 million of merger-related expenses from the Community Bankers Trust acquisition as well as additional employees from the acquisition. OREO expense decreased $2.1 million due to a decrease in net losses on the sale of OREO properties and fewer declines in the fair value of OREO properties. Partially offsetting the decreases in noninterest expense were increases in data processing expense of $3.6 million primarily due to $3.5 million of merger-related expenses associated with the Community Bankers Trust acquisition. Other expense increased $1.9 million driven by an increase in the reserve for unfunded loan commitments of $2.8 million, including $844 thousand related to loan commitments acquired from Community Bankers Trust.

Noninterest expense for the year of 2021 was $581.9 million, an increase of $3.7 million, or less than 1%, from the year of 2020. Employee compensation increased $5.3 million from the year of 2020 primarily due to the Carolina Financial and Community Bankers Trust acquisitions partially offset by lower employee compensation expense related to mortgage banking production. Additionally, noninterest expense increased slightly from the year of 2020 due to increases of $5.1 million in equipment expense, $5.0 million in employee benefits and $2.8 million in mortgage loan servicing expense and impairment. The increases in equipment expense, employee benefits and mortgage loan servicing expense and impairment were mainly from the

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Carolina Financial acquisition. Offsetting the increases in noninterest expense was a decrease in data processing expense of $4.0 million, due to a penalty of $9.7 million to terminate Carolina Financial’s data processing contract incurred in the second quarter of 2020, partially offset by $3.5 million of merger-related termination and conversion expenses associated with the Community Bankers Trust acquisition in the fourth quarter of 2021. The year of 2020 also included $10.4 million in prepayment penalties on the early payoff of FHLB advances compared to $15 thousand for the year of 2021.

On a linked-quarter basis, noninterest expense for the fourth quarter of 2021 increased $9.5 million, or 7%, from the third quarter of 2021 primarily due to an increase of $4.1 million in employee compensation, $4.2 million in data processing and $3.3 million in other expense. The increases in employee compensation and data processing expense were primarily due to the Community Bankers Trust acquisition. Within other expense, the largest driver of the increase was an increase in the reserve for unfunded loan commitments of $1.8 million, including $844 thousand related to loan commitments acquired from Community Bankers Trust. Partially offsetting the increases in noninterest expense were decreases in employee benefits of $2.3 million and mortgage loan servicing expense and impairment of $1.0 million.

Income Tax Expense

For the fourth quarter of 2021, income tax expense was $19.5 million as compared to $20.8 million for the fourth quarter of 2020 primarily due to lower earnings partially offset by a higher effective tax rate. For the year of 2021, income tax expense was $95.1 million as compared to $70.7 million for the year of 2020 primarily due to higher earnings and a slightly higher effective tax rate. On a linked-quarter basis, income tax expense decreased $4.1 million primarily due to lower earnings. United’s effective tax rate was 20.9% for the fourth quarter of 2021, 18.4% for the fourth quarter of 2020 and 20.4% for the third quarter of 2021. For the year of 2021 and 2020, United’s effective tax rate was 20.6% and 19.7%, respectively.

Regulatory Capital

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 15.4% at December 31, 2021, while estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 13.4%, 13.4% and 11.0%, respectively. The December 31, 2021 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%.

About United Bankshares, Inc.

As of December 31, 2021, United had consolidated assets of approximately $29.3 billion. United is the parent company of United Bank which comprises nearly 250 offices in Virginia, Maryland, Washington, D.C., North Carolina, South Carolina, Georgia, Pennsylvania, West Virginia, and Ohio. United’s stock is traded on the NASDAQ Global Select Market under the quotation symbol “UBSI”.

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Cautionary Statements

The Company is required under generally accepted accounting principles to evaluate subsequent events through the filing of its December 31, 2021 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, 2021 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, tangible equity, return on 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: the uncertainty as to the extent of the duration, scope and impacts of the COVID-19 pandemic, on United, its colleagues, the communities United serves, and the domestic and global economy; 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, reform of LIBOR; the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations, including those involving the OCC, 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 Community Bankers Trust, including the successful integration of operations of Community Bankers Trust, the expected growth opportunities and costs savings from the merger, and deposit attrition, operating costs, customer losses and business disruption following the merger; competition; and changes in legislation or regulatory requirements. 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, 2020, 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.

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 2021			December 2020			December 2021			December 2020
Interest income	$	195,194		$	208,914		$	795,117		$	798,382
Interest expense		11,516			16,925			52,383			108,609

Net interest income		183,678			191,989			742,734			689,773
Provision for credit losses		(7,405	)		16,751			(23,970	)		106,562
Noninterest income		54,049			94,082			278,092			354,746
Noninterest expense		151,789			156,117			581,943			578,217

Income before income taxes		93,343			113,203			462,853			359,740
Income taxes		19,491			20,833			95,115			70,717

Net income	$	73,852		$	92,370		$	367,738		$	289,023

PER COMMON SHARE:
Net income:
Basic	$	0.56		$	0.71		$	2.84		$	2.40
Diluted		0.56			0.71			2.83			2.40
Cash dividends	$	0.36		$	0.35			1.41			1.40
Book value								34.60			33.27
Closing market price							$	36.28		$	32.40
Common shares outstanding:
Actual at period end, net of treasury shares								136,392,758			129,188,507
Weighted average-basic		130,939,640			129,371,600			129,276,452			120,017,247
Weighted average-diluted		131,295,816			129,479,390			129,512,853			120,090,232

FINANCIAL RATIOS:
Return on average assets		1.04	%		1.41	%		1.35	%		1.20	%
Return on average shareholders’ equity		6.44	%		8.51	%		8.30	%		7.30	%
Return on average tangible equity (non-GAAP)⁽¹⁾		10.87	%		14.72	%		14.18	%		12.90	%
Average equity to average assets		16.22	%		16.54	%		16.26	%		16.39	%
Net interest margin		2.94	%		3.33	%		3.09	%		3.24	%

PERIOD END BALANCES:	December 31 2021			December 31 2020			December 31 2019			September 30 2021
Assets	$	29,328,902		$	26,184,247		$	19,662,324		$	27,507,517
Earning assets		26,083,089			23,172,403			17,344,638			24,415,973
Loans & leases, net of unearned income		18,023,648			17,591,413			13,712,129			16,743,629
Loans held for sale		504,416			718,937			387,514			493,299
Investment securities		4,295,749			3,186,184			2,669,797			3,646,065
Total deposits		23,350,263			20,585,160			13,852,421			21,822,609
Shareholders’ equity		4,718,628			4,297,620			3,363,833			4,430,766

Note: (1) See information under the “Selected Financial Ratios” table for a reconciliation of non-GAAP measure.

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
	December 2021			December 2020			September 2021			June 2021			March 2021
Interest & Loan Fees Income (GAAP)	$	195,194		$	208,914		$	194,080		$	200,186		$	205,657
Tax equivalent adjustment		1,037			1,042			1,059			1,075			1,047

Interest & Fees Income (FTE) (non-GAAP)		196,231			209,956			195,139			201,261			206,704
Interest Expense		11,516			16,925			12,501			13,669			14,697

Net Interest Income (FTE) (non-GAAP)		184,715			193,031			182,638			187,592			192,007

Provision for Credit Losses		(7,405	)		16,751			(7,829	)		(8,879	)		143

Noninterest Income:
Fees from trust services		4,327			3,585			4,269			4,193			3,763
Fees from brokerage services		3,699			3,125			3,883			3,654			4,323
Fees from deposit services		10,509			9,501			9,888			9,396			8,896
Bankcard fees and merchant discounts		1,580			1,129			1,473			1,368			1,064
Other charges, commissions, and fees		753			753			703			775			759
Income from bank-owned life insurance		1,223			1,479			2,556			1,658			1,403
Income from mortgage banking activities		27,342			70,793			42,012			36,943			65,395
Mortgage loan servicing income		2,435			2,334			2,429			2,386			2,355
Net gain on the sale of bank premises		0			0			0			0			0
Net (losses) gains on investment securities		(39	)		589			82			24			2,609
Other noninterest income		2,220			794			1,329			2,449			2,006

Total Noninterest Income		54,049			94,082			68,624			62,846			92,573

Noninterest Expense:
Employee compensation		71,542			77,001			67,459			68,557			72,412
Employee benefits		10,819			12,103			13,132			14,470			15,450
Net occupancy		10,653			10,979			10,339			10,101			10,941
Data processing		10,852			7,280			6,612			6,956			7,026
Amortization of intangibles		1,509			1,691			1,466			1,467			1,466
OREO expense		1,004			3,069			387			372			3,625
Equipment expense		6,819			6,396			7,286			5,830			6,044
FDIC insurance expense		2,626			2,250			1,920			1,800			2,000
Mortgage loan servicing expense and impairment		2,217			3,482			3,253			3,599			3,177
Prepayment penalties on FHLB borrowings		15			0			0			0			0
Other noninterest expense		33,733			31,866			30,422			25,799			26,786

Total Noninterest Expense		151,789			156,117			142,276			138,951			148,927

Income Before Income Taxes (FTE) (non-GAAP)		94,380			114,245			116,815			120,366			135,510
Tax equivalent adjustment		1,037			1,042			1,059			1,075			1,047

Income Before Income Taxes (GAAP)		93,343			113,203			115,756			119,291			134,463
Taxes		19,491			20,833			23,604			24,455			27,565

Net Income	$	73,852		$	92,370		$	92,152		$	94,836		$	106,898

MEMO: Effective Tax Rate		20.88	%		18.40	%		20.39	%		20.50	%		20.50	%

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


	Year Ended
	December 2021			December 2020			December 2019			December 2018
Interest & Loan Fees Income (GAAP)	$	795,117		$	798,382		$	762,562		$	717,715
Tax equivalent adjustment		4,218			3,888			3,735			4,328

Interest & Fees Income (FTE) (non-GAAP)		799,335			802,270			766,297			722,043
Interest Expense		52,383			108,609			184,640			129,070

Net Interest Income (FTE) (non-GAAP)		746,952			693,661			581,657			592,973

Provision for Credit Losses		(23,970	)		106,562			21,313			22,013

Noninterest Income:
Fees from trust services		16,552			13,903			13,873			12,930
Fees from brokerage services		15,559			11,758			10,136			9,347
Fees from deposit services		38,689			34,833			33,768			33,973
Bankcard fees and merchant discounts		5,485			4,066			4,674			5,168
Other charges, commissions, and fees		2,990			2,596			2,241			2,228
Income from bank-owned life insurance		6,840			7,217			7,339			5,045
Income from mortgage banking activities		171,692			266,094			76,951			58,109
Mortgage loan servicing income		9,605			6,213			0			0
Net gain on the sale of bank premises		0			2,229			0			2,763
Net gains (losses) on investment securities		2,676			3,155			175			(2,618	)
Other noninterest income		8,004			2,682			1,327			1,767

Total Noninterest Income		278,092			354,746			150,484			128,712

Noninterest Expense:
Employee compensation		279,970			274,661			173,962			164,468
Employee benefits		53,871			48,870			35,745			36,172
Net occupancy		42,034			41,303			34,850			36,462
Data processing		31,446			35,420			22,232			23,800
Amortization of intangibles		5,908			6,605			7,016			8,039
OREO expense		5,388			5,748			5,336			3,444
Equipment expense		25,979			20,861			14,210			13,846
FDIC insurance expense		8,346			10,132			8,070			11,464
Mortgage loan servicing expense and impairment		12,246			9,431			423			271
Prepayment penalties on FHLB borrowings		15			10,385			5,105			0
Other noninterest expense		116,740			114,801			75,705			70,213

Total Noninterest Expense		581,943			578,217			382,654			368,179

Income Before Income Taxes (FTE) (non-GAAP)		467,071			363,628			328,174			331,493
Tax equivalent adjustment		4,218			3,888			3,735			4,328

Income Before Income Taxes (GAAP)		462,853			359,740			324,439			327,165
Taxes		95,115			70,717			64,340			70,823

Net Income	$	367,738		$	289,023		$	260,099		$	256,342

MEMO: Effective Tax Rate		20.55	%		19.66	%		19.83	%		21.65	%

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 2021 Q-T-D Average			December 2020 Q-T-D Average			December 31 2021			December 31 2020			December 31 2019
Cash & Cash Equivalents	$	3,913,480		$	2,048,915		$	3,758,170		$	2,209,068		$	837,493
Securities Available for Sale		3,669,387			2,849,102			4,042,699			2,953,359			2,437,296
Less: Allowance for credit losses		0			0			0			0			0

Net available for sale securities		3,669,387			2,849,102			4,042,699			2,953,359			2,437,296
Securities Held to Maturity		1,020			1,235			1,020			1,235			1,446
Less: Allowance for credit losses		(27	)		(21	)		(19	)		(23	)		0

Net held to maturity securities		993			1,214			1,001			1,212			1,446
Equity Securities		12,161			10,399			12,404			10,718			8,894
Other Investment Securities		230,535			218,741			239,645			220,895			222,161

Total Securities		3,913,076			3,079,456			4,295,749			3,186,184			2,669,797

Total Cash and Securities		7,826,556			5,128,371			8,053,919			5,395,252			3,507,290

Loans held for sale		482,387			720,896			504,416			718,937			387,514
Commercial Loans & Leases		13,028,313			13,296,380			13,809,735			13,165,497			9,399,170
Mortgage Loans		2,908,187			3,269,073			3,008,410			3,197,274			3,107,721
Consumer Loans		1,240,676			1,253,421			1,233,162			1,259,812			1,206,657

Gross Loans		17,177,176			17,818,874			18,051,307			17,622,583			13,713,548
Unearned income		(27,666	)		(38,502	)		(27,659	)		(31,170	)		(1,419	)

Loans & Leases, net of unearned income		17,149,510			17,780,372			18,023,648			17,591,413			13,712,129
Allowance for Loan & Leases Losses		(218,550	)		(225,918	)		(216,016	)		(235,830	)		(77,057	)

Net Loans		16,930,960			17,554,454			17,807,632			17,355,583			13,635,072
Mortgage Servicing Rights		22,851			20,766			23,144			20,955			0
Goodwill		1,833,187			1,794,997			1,886,494			1,796,848			1,478,014
Other Intangibles		22,954			27,580			24,413			26,923			29,931
Operating Lease Right-of-Use Asset		75,254			72,090			81,942			69,520			57,783
Other Real Estate Owned		15,451			26,316			14,823			22,595			15,515
Other Assets		857,680			771,233			932,119			777,634			551,205

Total Assets	$	28,067,280		$	26,116,703		$	29,328,902		$	26,184,247		$	19,662,324

MEMO: Interest-earning Assets	$	24,935,489		$	23,122,784		$	26,083,089		$	23,172,403		$	17,344,638

Interest-bearing Deposits	$	13,653,822		$	13,018,640		$	14,369,716		$	13,179,900		$	9,231,059
Noninterest-bearing Deposits		8,678,093			7,495,594			8,980,547			7,405,260			4,621,362

Total Deposits		22,331,915			20,514,234			23,350,263			20,585,160			13,852,421
Short-term Borrowings		127,731			144,177			128,844			142,300			374,654
Long-term Borrowings		816,518			901,655			817,394			864,369			1,838,029

Total Borrowings		944,249			1,045,832			946,238			1,006,669			2,212,683
Operating Lease Liability		80,118			75,805			86,703			73,213			61,342
Other Liabilities		159,364			161,580			227,070			221,585			172,045

Total Liabilities		23,515,646			21,797,451			24,610,274			21,886,627			16,298,491

Preferred Equity		0			0			0			0			0
Common Equity		4,551,634			4,319,252			4,718,628			4,297,620			3,363,833

Total Shareholders’ Equity		4,551,634			4,319,252			4,718,628			4,297,620			3,363,833

Total Liabilities & Equity	$	28,067,280		$	26,116,703		$	29,328,902		$	26,184,247		$	19,662,324

MEMO: Interest-bearing Liabilities	$	14,598,071		$	14,064,472		$	15,315,954		$	14,186,569		$	11,443,742

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)


	Three Months Ended
Quarterly Share Data:	December 2021			December 2020			September 2021			June 2021			March 2021
Earnings Per Share:
Basic	$	0.56		$	0.71		$	0.71		$	0.73		$	0.83
Diluted	$	0.56		$	0.71		$	0.71		$	0.73		$	0.83
Common Dividend Declared Per Share	$	0.36		$	0.35		$	0.35		$	0.35		$	0.35
High Common Stock Price	$	39.41		$	32.86		$	37.12		$	42.50		$	41.61
Low Common Stock Price	$	33.34		$	21.19		$	31.74		$	36.19		$	31.57
Average Shares Outstanding (Net of Treasury Stock):
Basic		130,939,640			129,371,600			128,762,815			128,750,851			128,635,740
Diluted		131,295,816			129,479,390			128,960,220			129,033,988			128,890,861
Common Dividends	$	46,564		$	45,442		$	45,271		$	45,268		$	45,254
Dividend Payout Ratio		63.05	%		49.20	%		49.13	%		47.73	%		42.33	%

				Year Ended
Year-to-Date Share Data:				December 2021			December 2020			December 2019			December 2018
Earnings Per Share:
Basic				$	2.84		$	2.40		$	2.55		$	2.46
Diluted				$	2.83		$	2.40		$	2.55		$	2.45
Common Dividend Declared Per Share				$	1.41		$	1.40		$	1.37		$	1.36
Average Shares Outstanding (Net of Treasury Stock):
Basic					129,276,452			120,017,247			101,585,599			104,015,976
Diluted					129,512,853			120,090,232			101,852,577			104,298,825
Common Dividends				$	182,357		$	171,876		$	139,508		$	141,610
Dividend Payout Ratio					49.59	%		59.47	%		53.64	%		55.24	%

EOP Share Data:	December 31 2021			December 31 2020			September 30 2021			June 30 2021			March 31 2021
Book Value Per Share	$	34.60		$	33.27		$	34.29		$	34.01		$	33.54
Tangible Book Value Per Share (non-GAAP) ⁽¹⁾	$	20.59		$	19.15		$	20.11		$	19.81		$	19.38
52-week High Common Stock Price	$	42.50		$	39.07		$	42.50		$	42.50		$	41.61
Date		05/18/21			01/02/20			05/18/21			05/18/21			03/18/21
52-week Low Common Stock Price	$	31.57		$	19.67		$	21.19		$	20.57		$	20.57
Date		1/29/21			03/23/20			10/01/20			09/25/20			09/25/20

EOP Shares Outstanding (Net of Treasury Stock):		136,392,758			129,188,507			129,203,774			129,203,593			129,175,800

Memorandum Items:
EOP Employees (full-time equivalent)		3,143			3,051			2,986			3,012			3,033

Note:
(1) Tangible Book Value Per Share:
Total Shareholders’ Equity (GAAP)	$	4,718,628		$	4,297,620		$	4,430,766		$	4,393,713		$	4,332,698
Less: Total Intangibles		(1,910,907	)		(1,823,771	)		(1,832,564	)		(1,834,030	)		(1,829,495	)

Tangible Equity (non-GAAP)	$	2,807,721		$	2,473,849		$	2,598,202		$	2,559,683		$	2,503,203
÷ EOP Shares Outstanding (Net of Treasury Stock)		136,392,758			129,188,507			129,203,774			129,203,593			129,175,800
Tangible Book Value Per Share (non-GAAP)	$	20.59		$	19.15		$	20.11		$	19.81		$	19.38

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 2021			December 2020			September 2021			June 2021			March 2021
Selected Yields and Net Interest Margin:
Net Loans and Loans held for sale		4.04	%		4.18	%		4.15	%		4.18	%		4.26	%
Investment Securities		1.72	%		2.08	%		1.71	%		1.87	%		1.93	%
Money Market Investments/FFS		0.28	%		0.42	%		0.26	%		0.24	%		0.34	%
Average Earning Assets Yield		3.13	%		3.62	%		3.18	%		3.37	%		3.56	%
Interest-bearing Deposits		0.26	%		0.43	%		0.29	%		0.33	%		0.37	%
Short-term Borrowings		0.52	%		0.55	%		0.54	%		0.54	%		0.51	%
Long-term Borrowings		1.23	%		1.15	%		1.23	%		1.22	%		1.23	%
Average Liability Costs		0.31	%		0.48	%		0.35	%		0.39	%		0.42	%
Net Interest Spread		2.82	%		3.14	%		2.83	%		2.98	%		3.14	%
Net Interest Margin		2.94	%		3.33	%		2.98	%		3.14	%		3.30	%

Selected Financial Ratios:
Return on Average Assets		1.04	%		1.41	%		1.33	%		1.41	%		1.64	%
Return on Average Shareholders’ Equity		6.44	%		8.51	%		8.23	%		8.69	%		9.97	%
Return on Average Tangible Equity (non-GAAP) ⁽¹⁾		10.87	%		14.72	%		14.03	%		14.95	%		17.20	%
Efficiency Ratio		63.85	%		54.57	%		56.86	%		55.72	%		52.53	%

Note:
(1) Return on Average Tangible Equity:
(a) Net Income (GAAP)	$	73,852		$	92,370		$	92,152		$	94,836		$	106,898
(b) Number of Days		92			92			92			91			90
Average Total Shareholders’ Equity (GAAP)	$	4,551,634		$	4,319,252		$	4,440,107		$	4,378,898		$	4,346,750
Less: Average Total Intangibles		(1,856,141	)		(1,822,577	)		(1,833,449	)		(1,834,920	)		(1,825,639	)

(c) Average Tangible Equity (non-GAAP)	$	2,695,493		$	2,496,675		$	2,606,658		$	2,543,978		$	2,521,111
Return on Average Tangible Equity (non-GAAP) [(a) / (b)] x 365 or 366 / (c)		10.87	%		14.72	%		14.03	%		14.95	%		17.20	%

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)


	Year Ended
	December 2021			December 2020			December 2019			December 2018
Selected Yields and Net Interest Margin:
Net Loans and Loans held for sale		4.16	%		4.27	%		4.85	%		4.77	%
Investment Securities		1.80	%		2.33	%		2.86	%		2.73	%
Money Market Investments/FFS		0.28	%		0.65	%		2.91	%		2.29	%
Average Earning Assets Yield		3.30	%		3.75	%		4.47	%		4.36	%
Interest-bearing Deposits		0.31	%		0.67	%		1.41	%		0.97	%
Short-term Borrowings		0.52	%		0.70	%		1.67	%		1.00	%
Long-term Borrowings		1.23	%		1.76	%		2.56	%		2.34	%
Average Liability Costs		0.37	%		0.80	%		1.60	%		1.15	%
Net Interest Spread		2.93	%		2.95	%		2.87	%		3.21	%
Net Interest Margin		3.09	%		3.24	%		3.39	%		3.58	%

Selected Financial Ratios:
Return on Average Assets		1.35	%		1.20	%		1.34	%		1.36	%
Return on Average Shareholders’ Equity		8.30	%		7.30	%		7.80	%		7.84	%
Return on Average Tangible Equity (non-GAAP) ⁽¹⁾		14.18	%		12.90	%		14.26	%		14.65	%
Efficiency Ratio		57.01	%		55.36	%		52.53	%		51.32	%

Note:
(1) Return on Average Tangible Equity:
(a) Net Income (GAAP)	$	367,738		$	289,023		$	260,099		$	256,342
Average Total Shareholders’ Equity (GAAP)		4,430,688			3,956,969			3,336,075			3,268,944
Less: Average Total Intangibles		(1,837,609	)		(1,716,738	)		(1,511,501	)		(1,519,174	)

(b) Average Tangible Equity (non-GAAP)	$	2,593,079		$	2,240,231		$	1,824,574		$	1,749,770
Return on Average Tangible Equity (non-GAAP) [(a) / (b)]		14.18	%		12.90	%		14.26	%		14.65	%

Selected Financial Ratios:	December 31 2021			December 31 2020			December 31 2019			December 31 2018
Loans & Leases, net of unearned income / Deposit Ratio		77.19	%		85.46	%		98.99	%		95.91	%
Allowance for Loan & Lease Losses/ Loans & Leases, net of unearned income		1.20	%		1.34	%		0.56	%		0.57	%
Allowance for Credit Losses ⁽²⁾/ Loans & Leases, net of unearned income		1.37	%		1.45	%		0.57	%		0.58	%
Nonaccrual Loans / Loans & Leases, net of unearned income		0.20	%		0.36	%		0.46	%		0.51	%
90-Day Past Due Loans/ Loans & Leases, net of unearned income		0.10	%		0.08	%		0.07	%		0.11	%
Non-performing Loans/ Loans & Leases, net of unearned income		0.50	%		0.75	%		0.96	%		1.06	%
Non-performing Assets/ Total Assets		0.36	%		0.59	%		0.75	%		0.83	%
Primary Capital Ratio		16.79	%		17.22	%		17.44	%		17.23	%
Shareholders’ Equity Ratio		16.09	%		16.41	%		17.11	%		16.89	%
Price / Book Ratio		1.05	x		0.97	x		1.17	x		0.98	x
Price / Earnings Ratio		12.82	x		13.50	x		15.14	x		12.71	x

Note:

(2)	Includes allowances for loan losses and lending-related commitments.

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)


	Three Months Ended
Mortgage Banking Segment Data:	December 2021			December 2020			September 2021			June 2021			March 2021
Applications	$	1,534,311		$	2,284,532		$	1,893,870		$	2,029,846		$	2,630,426
Loans originated		1,287,629			1,979,284			1,385,871			1,658,128			1,910,619
Loans sold	$	1,273,014		$	2,065,400		$	1,470,928		$	1,877,772		$	1,817,884
Purchase money % of loans closed		69	%		49	%		69	%		69	%		43	%
Realized gain on sales and fees as a % of loans sold		3.02	%		4.10	%		3.00	%		2.90	%		4.16	%
Net interest income	$	2,609		$	2,918		$	2,367		$	2,871		$	2,650
Other income		30,921			73,082			45,023			39,765			67,507
Other expense		29,147			41,193			31,787			36,391			41,183
Income taxes		876			5,656			3,179			1,280			5,940
Net income	$	3,507		$	29,151		$	12,424		$	4,965		$	23,034

				Year Ended
Mortgage Banking Segment Data:				December 2021			December 2020			December 2019			December 2018
Applications				$	8,088,453		$	9,988,227		$	4,330,000		$	3,912,000
Loans originated					6,242,246			6,648,247			2,941,722			2,619,454
Loans sold				$	6,439,598		$	6,393,394		$	2,804,451		$	2,608,242
Purchase money % of loans closed					61	%		47	%		72	%		83	%
Realized gain on sales and fees as a % of loans sold					3.31	%		3.63	%		2.86	%		2.72	%
Net interest income				$	10,497		$	8,853		$	916		$	1,315
Other income					183,216			276,185			83,884			68,555
Other expense					138,508			140,628			72,288			72,632
Income taxes					11,275			27,698			2,355			(505	)
Net income (loss)				$	43,930		$	116,712		$	10,157		$	(2,257	)

Period End Mortgage Banking Segment Data:	December 31 2021			December 31 2020			September 30 2021			June 30 2021			March 31 2021
Locked pipeline	$	448,889		$	989,640		$	648,706		$	660,258		$	979,842
Balance of loans serviced	$	3,698,998		$	3,587,953		$	3,723,206		$	3,674,023		$	3,585,890
Number of loans serviced		25,198			25,614			25,583			25,526			25,443

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)


Asset Quality Data:	December 31 2021			December 31 2020			September 30 2021			June 30 2021			March 31 2021
EOP Non-Accrual Loans	$	36,028		$	62,718		$	37,689		$	41,182		$	48,985
EOP 90-Day Past Due Loans		18,879			13,832			14,827			14,135			15,719
EOP Restructured Loans ⁽¹⁾		35,856			55,657			37,752			47,271			51,529

Total EOP Non-performing Loans	$	90,763		$	132,207		$	90,268		$	102,588		$	116,233
EOP Other Real Estate Owned		14,823			22,595			16,696			18,474			18,690

Total EOP Non-performing Assets	$	105,586		$	154,802		$	106,964		$	121,062		$	134,923


	Three Months Ended
Allowance for Loan Losses:	December 2021			December 2020			September 2021			June 2021			March 2021
Beginning Balance	$	210,891		$	225,812		$	217,545		$	231,582		$	235,830
Cumulative Effect Adjustment for CECL		0			0			0			0			0

		210,891			225,812			217,545			231,582			235,830
Initial allowance for acquired PCD loans		12,629			0			0			0			0
Gross Charge-offs		(4,205	)		(10,120	)		(2,004	)		(6,131	)		(6,957	)
Recoveries		4,080			3,203			3,173			910			2,415

Net (Charge-offs) Recoveries		(125	)		(6,917	)		1,169			(5,221	)		(4,542	)
Provision for Loan & Lease Losses		(7,379	)		16,935			(7,823	)		(8,816	)		294

Ending Balance		216,016			235,830			210,891			217,545			231,582
Reserve for lending-related commitments		31,442			19,250			25,191			20,897			20,024

Allowance for Credit Losses ⁽²⁾	$	247,458		$	255,080		$	236,082		$	238,442		$	251,606


				Year Ended
Allowance for Loan Losses:				December 2021			December 2020			December 2019			December 2018
Beginning Balance				$	235,830		$	77,057		$	76,703		$	76,627
Cumulative Effect Adjustment for CECL					0			57,442			0			0

					235,830			134,499			76,703			76,627
Initial allowance for acquired PCD loans					12,629			18,635			0			0
Gross Charge-offs					(19,297	)		(32,983	)		(29,110	)		(28,606	)
Recoveries					10,578			9,386			8,151			6,669

Net (Charge-offs)					(8,719	)		(23,597	)		(20,959	)		(21,937	)
Provision for Loan & Lease Losses					(23,724	)		106,293			21,313			22,013

Ending Balance					216,016			235,830			77,057			76,703
Reserve for lending-related commitments					31,442			19,250			1,733			1,389

Allowance for Credit Losses ⁽²⁾				$	247,458		$	255,080		$	78,790		$	78,092

Notes:

(1)

Restructured loans with an aggregate balance of $22,421, $41,185, $24,662, $32,471, and $38,023 at December 31, 2021, December 31, 2020, September 30, 2021, June 30, 2021 and March 31, 2021, respectively, were on nonaccrual status, but are not included in “EOP Non-Accrual Loans” above. Restructured loans with an aggregate balance of $102 thousand and $46 thousand at December 31, 2021 and June 30, 2021, respectively, were 90 days past due, but not included in “EOP Non-Accrual Loans” above.

(2)	Includes allowances for loan losses and lending-related commitments.