GilmerFreePress.net

Gas Prices May Moderate, AAA Says

The Gilmer Free Press

WASHINGTON, D.C.—The U.S. national average retail price for a gallon of gas is above $2.50 for the first time in months, but the spike might not last, motor club AAA said.

AAA reports a national average price for a gallon of regular unleaded gas Tuesday at $2.55, the first time the national average stayed above the $2.50 mark in more than four months.

“Average prices have now increased by 15 cents per gallon in just two weeks,“ the motor club said in a weekly report, published Monday. “This recent increase has been the product of rising global crude prices, the seasonal switch to summer-blend gasoline and regional refinery issues, particularly on the West Coast.“

South Carolina had the lowest state average with $2.28 per gallon. California had the highest price for Lower 48 states with $3.43 per gallon. At one point last year, more than half of all U.S. states had an average price below the $2 mark.

AAA said an improving crude oil market and preparations by refineries to switch to a summer blend of gasoline, which is more expensive to produce, is in part behind the increase in prices at the pump. The deadline to switch to summer gasoline is May 1 and the shift could make prices could up through spring.

“Following the transition to summer-blend gasoline and as refineries complete seasonal maintenance, the national average may return to below $2.50 per gallon, though much of the forecast will depend on what happens with the cost of crude oil,“ AAA said.

The national average price for Tuesday is still more than $1 below this date in 2014. Oil prices last year fell more than 50 %, though have recovered somewhat during the first quarter of the year.

Stock Market - 04.28.15

The Gilmer Free Press

Stocks endured a choppy day of trading following a mixed bag of corporate earnings and as the Federal Reserve began their two-day meeting to discuss monetary policy.

Twitter (TWTR) tumbled 18% in the final hour of trading after earnings were accidentally posted an hour early.

The company said it is investigating the leak.

The social media network earned $0.07 a share, above estimates, though sales came in light.

Second-quarter revenue guidance also disappointed.

Merck (MRK) was the best performer on the S&P 500 and Dow after beating on the top- and bottom-line.

Whirlpool (WHR) dragged on the S&P 500 after cutting its full-year outlook.

United Bankshares, Inc. Announces Increase in Earnings

The Gilmer Free Press

WASHINGTON, D.C. & CHARLESTON, WV—United Bankshares, Inc. (NASDAQ: UBSI),     today announced earnings for the first quarter of 2015. Earnings for the     first quarter of 2015 were $34.6 million or $0.50 per diluted share, an     increase from earnings of $30.1 million or $0.48 per diluted share for     the first quarter of 2014.

           

United’s first quarter of 2015 results produced an annualized return on     average assets of 1.16% and an annualized return on average equity of     8.38%. These returns compare favorably to the most recently reported     average return on assets of 0.96% and average return on equity of 8.14%     for the year of 2014 reported by United’s Federal Reserve peer group     (bank holding companies with total assets over $10 billion). United’s     annualized returns on average assets and average equity were 1.14% and     8.57%, respectively, for the first quarter of 2014.

           

On January 31, 2014, United completed its acquisition of Virginia     Commerce Bancorp, Inc. (Virginia Commerce) of Arlington, Virginia. The     results of operations of Virginia Commerce are included in the     consolidated results of operations from the date of acquisition. As a     result, the first quarter of 2015 was impacted for an additional month     by increased levels of average balances, income, and expense as compared     to the first quarter of 2014 due to the acquisition. At consummation,     Virginia Commerce had assets of approximately $2.8 billion, loans of     $2.1 billion, and deposits of $2.0 billion. In addition, United sold a     former branch building during the first quarter of 2014 which resulted     in a before-tax gain of $9.0 million.

           

Tax-equivalent net interest income for the first quarter of 2015 was     $96.3 million, an increase of $9.4 million or 11% from the first quarter     of 2014. This increase in tax-equivalent net interest income was     primarily attributable to an increase in average earning assets from the     Virginia Commerce acquisition. Average earning assets increased $1.3     billion or 14% from the first quarter of 2014. Average net loans     increased $978.8 million or 12% for the first quarter of 2015 while     average short-term investments and investment securities increased     $224.2 million or 77% and $90.8 million or 7%, respectively. In     addition, the average cost of funds declined 6 basis points from the     first quarter of 2014. Partially offsetting the increases to     tax-equivalent net interest income for the first quarter of 2015 was a     decline of 15 basis points in the average yield on earning assets as     compared to the first quarter of 2014. The net interest margin for the     first quarter of 2015 was 3.61%, which was a decrease of 9 basis points     from a net interest margin of 3.70% for the first quarter of 2014.

           

On a linked-quarter basis, United’s tax-equivalent net interest income     for the first quarter of 2015 decreased $5.8 million or 6% due mainly to     a decrease in the average yield on earning assets. The first quarter of     2015 average yield on earning assets decreased 21 basis points from the     fourth quarter of 2014 due primarily to interest income of $3.2 million     on the repayment of a large acquired loan in the fourth quarter of 2014.     Average earning assets were flat, increasing $25.3 million or less than     1% for the linked-quarter. Average net loans and average investments     were also flat while average short-term investments increased $70.2     million or 16%. Partially offsetting the decreases to tax-equivalent net     interest income for the first quarter of 2015 was a decrease of 6 basis     points in the average cost of funds as compared to the fourth quarter of     2014. The net interest margin of 3.61% for the first quarter of 2015 was     a decrease of 16 basis points from the net interest margin of 3.77% for     the fourth quarter of 2014.

           

For the quarters ended March 31, 2015 and 2014, the provision for loan     losses was $5.4 million and $4.7 million, respectively. Net charge-offs     were $5.3 million for the first quarter of 2015 as compared to $4.5     million for the first quarter of 2014. Annualized net charge-offs as a     percentage of average loans were 0.24% for the first quarter of 2015 as     compared to 0.30% for United’s Federal Reserve peer group for the year     of 2014. On a linked-quarter basis, the provision for loans losses     decreased $955 thousand while net charge-offs decreased $1.19 million     from the fourth quarter of 2014.

           

Noninterest income for the first quarter of 2015 was $18.2 million,     which was a decrease of $8.2 million from the first quarter of 2014.     Included in noninterest income for the first quarter of 2014 was the     previously mentioned net gain of $9.0 million on the sale of bank     premises. Noninterest income for the first quarter of 2015 included     noncash, before-tax, other-than-temporary impairment charges of $34     thousand on certain investment securities as compared to noncash,     before-tax other-than-temporary impairment charges of $639 thousand on     certain investment securities for the first quarter of 2014. In     addition, net gains on sales and calls of investment securities were $46     thousand and $824 thousand for the first quarters of 2015 and 2014,     respectively. Excluding the net gain on the sale of bank premises, the     noncash, other-than-temporary impairment charges as well as the net     gains from sales and calls of investment securities, noninterest income     for the first quarter of 2015 increased $953 thousand or 6% from the     first quarter of 2014. This increase for the first quarter of 2015 was     due primarily to increases of $299 thousand in income from trust and     brokerage services due to an increase in volume, $286 thousand in     mortgage banking income due to increased production and sales of     mortgage loans in the secondary market, and $214 thousand in fees from     deposit services due to increased debit card transactions.

           

On a linked-quarter basis, noninterest income for the first quarter of     2015 decreased $1.2 million from the fourth quarter of 2014. Included in     the results for the first quarter of 2015 and fourth quarter of 2014     were noncash, before-tax, other-than-temporary impairment charges of $34     thousand and $704 thousand, respectively. In addition, the results for     the first quarter of 2015 and fourth quarter of 2014 included net gains     on sales and calls of investment securities of $46 thousand and $1.2     million, respectively. Excluding the noncash, other-than-temporary     impairment charges as well as the net gains from sales and calls of     investment securities, noninterest income decreased $708 thousand or 4%     on a linked-quarter basis. This decrease was mainly due to declines in     fees from deposit services of $1.0 million as a result of a decrease in     overdraft fees and $419 thousand in fees from bankcard services due to a     decline in volume, both due to seasonality. Partially offsetting these     decreases was an increase of $459 thousand in income from trust and     brokerage services due to an increase in volume.

           

Noninterest expense for the first quarter of 2015 was $57.7 million, a     decrease of $3.4 million or 6% from the first quarter of 2014. Employee     compensation decreased $4.7 million due to $3.6 million of merger     severance charges included in the first quarter of 2014. In addition,     other real estate owned (OREO) expense decreased $1.0 million due to     fewer declines in the fair values of OREO properties. Partially     offsetting these decreases was an increase of $1.2 million in employee     benefits due to an increase in pension expense.

           

On a linked-quarter basis, noninterest expense for the first quarter of     2015 decreased $6.4 million or 10% from the fourth quarter of 2014.     Included in noninterest expense for the first quarter of 2015 was a     charge of $1.1 million related to historical tax credits. Noninterest     expense for the fourth quarter of 2014 included a prepayment penalty of     $2.0 million on an FHLB advance and a donation of $800 thousand to an     educational institution. Otherwise on a linked-quarter basis, employee     compensation declined $1.8 million primarily due to lower incentives,     OREO expense decreased $1.7 million due to fewer declines in the fair     values of OREO properties and equipment expense decreased $923 thousand     due to a decline in depreciation expense. Partially offsetting these     decreases was an increase of $1.9 million in employee benefits due to     increases in pension and Federal Insurance Contributions Act (FICA)     expense.

           

For the first quarter of 2015, income tax expense was $15.3 million as     compared to $15.9 million and $16.4 million for the first and fourth     quarters of 2014, respectively. The decreases were primarily due to the     historical tax credits recognized in the first quarter of 2015. United’s     effective tax rate was approximately 30.7% for the first quarter of 2015     and 34.5% and 33.0% for the first and fourth quarters of 2014,     respectively. The normal effective tax rate for United is 33%.

           

United’s asset quality continues to be sound. At March 31, 2015,     nonperforming loans were $114.4 million, or 1.26% of loans, net of     unearned income up from nonperforming loans of $109.0 million or 1.20%     of loans, net of unearned income, at December 31, 2014. As of March 31,     2015, the allowance for loan losses was $75.6 million or 0.84% of loans,     net of unearned income, as compared to $75.5 million or 0.83% of loans,     net of unearned income, at December 31, 2014. Total nonperforming assets     of $151.9 million, including OREO of $37.6 million at March 31, 2015,     represented 1.25% of total assets.

           

On January 1, 2015, the new Basel III Capital Rules became effective for     United and its banking subsidiaries. United continues to be     well-capitalized based upon these new regulatory guidelines. United’s     estimated risk-based capital ratio is 12.4% at March 31, 2015 while its     estimated Common Equity Tier 1 capital, Tier 1 capital and leverage     ratios are 9.5%, 11.7% and 10.5%, respectively. The new 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%.

           

During the first quarter of 2015, United’s Board of Directors declared a     cash dividend of $0.32 per share. The year of 2014 represented the 41st     consecutive year of dividend increases for United shareholders. United     is one of only two major banking companies in the USA to have achieved     such a record.

           

United has consolidated assets of approximately $12.1 billion with 130     full service offices in West Virginia, Virginia, Maryland, Ohio,     Pennsylvania and Washington, D.C. United Bankshares stock is traded on     the NASDAQ Global Select Market under the quotation symbol “UBSI“.

           

Cautionary Statements

           

      The Company is required under generally accepted accounting principles to evaluate subsequent events through the filing of its March 31, 2015 consolidated financial statements on Form 10-Q. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of March 31, 2015 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, noninterest income excluding the results of the noncash, other-than-temporary impairment charges as well as net gains and losses from sales and calls of investment securities, 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 35%.    

           

      GAAP total non-interest income results are adjusted for other-than-temporary impairment charges (OTTI) on certain investment securities, net gains or losses on the sale of securities and any infrequent noninterest income items. Management believes noninterest income without OTTI charges, net securities gains or losses and infrequent noninterest income items is more indicative of United’s performance because it isolates income that is primarily customer relationship driven and is more indicative of normalized operations. In addition, these items can fluctuate greatly from quarter to quarter and are difficult to predict.    

           

      Tangible common equity is calculated as GAAP total shareholders’ equity minus total       intangible assets       . Tangible common equity can thus be considered the most conservative valuation of the company. Tangible common equity is also presented on a per common share basis. 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 common equity are presented.       These two measures, along with others, are used by management to analyze capital adequacy.    

           

      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

           

      This press release contains certain forward-looking statements, including certain plans, expectations, goals and projections, which are subject to numerous assumptions, risks and uncertainties.       Actual results could differ materially from those contained in or implied by such statements for a variety of factors including: changes in economic conditions; movements in interest rates; competitive pressures on product pricing and services; success and timing of business strategies; the nature and extent of governmental actions and reforms; and rapidly changing technology and evolving banking industry standards.    

UNITED BANKSHARES, INC. AND SUBSIDIARIES

FINANCIAL SUMMARY

(In Thousands Except for Per Share Data)

 

Three Months Ended

March 31

2015

 

March 31

2014

 

December 31

2014

EARNINGS SUMMARY:

Interest income, taxable equivalent (non-GAAP)

$

106,118

$

96,772

$

113,252

Interest expense

9,800

9,862

11,166

Net interest income, taxable equivalent (non-GAAP)

96,318

86,910

102,086

Taxable equivalent adjustment

1,569

1,608

1,530

Net interest income (GAAP)

94,749

85,302

100,556

Provision for loan losses

5,354

4,679

6,309

Noninterest income

18,191

26,387

19,415

Noninterest expenses

57,655

61,026

64,024

Income taxes

15,304

15,860

16,381

Net income

$

34,627

$

30,124

$

33,257

 

PER COMMON SHARE:

Net income:

Basic

$

0.50

$

0.48

$

0.48

Diluted

0.50

0.48

0.48

Cash dividends

0.32

0.32

0.32

Book value

24.17

23.40

23.90

Closing market price

$

37.58

$

30.62

$

37.45

Common shares outstanding:

Actual at period end, net of treasury shares

69,437,341

69,055,157

69,295,859

Weighted average- basic

69,207,508

62,434,749

69,088,844

Weighted average- diluted

69,476,844

62,707,328

69,355,086

 

FINANCIAL RATIOS:

Return on average assets

1.16%

1.14%

1.09%

Return on average shareholders’ equity

8.38%

8.57%

7.88%

Average equity to average assets

13.80%

13.30%

13.79%

Net interest margin

3.61%

3.70%

3.77%

 

March 31

2015

March 31

2014

December 31

2014

PERIOD END BALANCES:

Assets

$

12,141,519

$

11,886,320

$

12,328,811

Earning assets

10,780,177

10,447,141

10,931,194

Loans, net of unearned income

9,043,111

8,770,581

9,104,652

Loans held for sale

8,881

3,565

8,680

Investment securities

1,294,364

1,366,581

1,316,040

Total deposits

9,076,644

8,581,908

9,045,485

Shareholders’ equity

1,678,058

1,616,123

1,656,160

   

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

March

March

December

2015

2014

2014

 

Interest & Loan Fees Income (GAAP)

$

104,549

$

95,164

$

111,722

Tax equivalent adjustment

 

1,569

 

1,608

 

1,530

Interest & Fees Income (FTE) (non-GAAP)

106,118

96,772

113,252

Interest Expense

 

9,800

 

9,862

 

11,166

Net Interest Income (FTE) (non-GAAP)

96,318

86,910

102,086

 

Provision for Loan Losses

5,354

4,679

6,309

 

Non-Interest Income:

Fees from trust & brokerage services

4,892

4,593

4,433

Fees from deposit services

9,773

9,559

10,777

Bankcard fees and merchant discounts

814

746

1,233

Other charges, commissions, and fees

478

427

508

Income from bank owned life insurance

1,273

1,251

1,279

Mortgage banking income

545

259

405

Net gain on the sale of bank premises

0

8,976

0

Other non-interest revenue

404

391

252

Net other-than-temporary impairment losses

(34)

(639)

(704)

Net gains on sales/calls of investment securities

 

46

 

824

 

1,232

Total Non-Interest Income

18,191

26,387

19,415

 

Non-Interest Expense:

Employee compensation

20,268

25,007

22,097

Employee benefits

6,803

5,624

4,890

Net occupancy

6,529

6,435

6,447

Data processing

3,743

3,237

3,844

Amortization of intangibles

855

809

1,054

OREO expense

1,113

2,113

2,772

FDIC expense

2,094

1,507

2,006

Prepayment penalty on FHLB advance

0

0

1,971

Other expenses

 

16,250

 

16,294

 

18,943

Total Non-Interest Expense

 

57,655

 

61,026

 

64,024

 

Income Before Income Taxes (FTE) (non-GAAP)

 

51,500

 

47,592

 

51,168

 

Tax equivalent adjustment

 

1,569

 

1,608

 

1,530

 

Income Before Income Taxes (GAAP)

49,931

45,984

49,638

 

Taxes

 

15,304

 

15,860

 

16,381

 

Net Income

$

34,627

$

30,124

$

33,257

 

MEMO: Effective Tax Rate

30.65%

34.49%

33.00%

 

Note: Non-Interest Income excluding the results of noncash, other-than-temporary impairment charges as well as net gains and losses

from sales and calls of investment securities and the net gain on the sale of bank premises (non-GAAP):

 

Total Non-Interest Income (GAAP)

$

18,191

$

26,387

$

19,415

Less: Net gain on the sale of bank premises (GAAP)

0

8,976

0

Less: Net other-than-temporary impairment losses (GAAP)

(34)

(639)

(704)

Less: Net gains on sales/calls of investment securities (GAAP)

 

46

 

824

 

1,232

Non-Interest Income excluding the results of noncash,
other-than-temporary impairment charges as well as
net gains and losses from sales and calls of investment
securities (non-GAAP)

 

 

 

$

 

 

18,179

 

 

$

 

 

17,226

 

 

$

 

 

18,887

   

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

Consolidated Balance Sheets

March 31

March 31

2015

2014

March 31

December 31

Q-T-D Average

Q-T-D Average

2015

2014

 

Cash & Cash Equivalents

$

668,175

$

441,948

$

667,494

$

753,064

 

Securities Available for Sale

1,168,324

1,086,650

1,165,136

1,180,386

Securities Held to Maturity

39,146

40,809

39,091

39,310

Other Investment Securities

 

95,817

 

84,991

 

90,137

 

96,344

Total Securities

 

1,303,287

 

1,212,450

 

1,294,364

 

1,316,040

Total Cash and Securities

 

1,971,462

 

1,654,398

 

1,961,858

 

2,069,104

 

Loans Held for Sale

6,545

2,883

8,881

8,680

 

Commercial Loans

6,846,563

6,008,682

6,863,086

6,923,745

Mortgage Loans

1,802,880

1,716,117

1,800,244

1,806,766

Consumer Loans

 

391,550

 

337,165

 

394,209

 

388,981

 

Gross Loans

9,040,993

8,061,964

9,057,539

9,119,492

 

Unearned Income

 

(14,769)

 

(12,189)

 

(14,428)

 

(14,840)

 

Loans, Net of Unearned Income

9,026,224

8,049,775

9,043,111

9,104,652

 

Allowance for Loan Losses

(75,351)

(74,068)

(75,573)

(75,529)

 

Goodwill

709,947

606,983

710,252

709,794

Other Intangibles

 

20,873

 

23,233

 

20,405

 

21,260

Total Intangibles

730,820

630,216

730,657

731,054

 

Real Estate Owned

38,894

44,286

37,550

38,778

Other Assets

 

440,692

 

413,343

 

435,035

 

452,072

Total Assets

$

12,139,286

$

10,720,833

$

12,141,519

$

12,328,811

 

MEMO: Earning Assets

$

10,777,299

$

9,483,433

$

10,780,177

$

10,931,194

 

Interest-bearing Deposits

$

6,442,066

$

5,696,698

$

6,508,302

$

6,453,866

Noninterest-bearing Deposits

 

2,507,695

 

2,132,041

 

2,568,342

 

2,591,619

Total Deposits

8,949,761

7,828,739

9,076,644

9,045,485

 

Short-term Borrowings

371,508

606,476

321,980

435,652

Long-term Borrowings

 

1,077,454

 

809,580

 

979,827

 

1,105,314

Total Borrowings

1,448,962

1,416,056

1,301,807

1,540,966

 

Other Liabilities

 

65,154

 

49,717

 

85,010

 

86,200

Total Liabilities

 

10,463,877

 

9,294,512

 

10,463,461

 

10,672,651

 

Preferred Equity

—-

—-

—-

—-

Common Equity

 

1,675,409

 

1,426,321

 

1,678,058

 

1,656,160

Total Shareholders’ Equity

 

1,675,409

 

1,426,321

 

1,678,058

 

1,656,160

 

Total Liabilities & Equity

$

12,139,286

$

10,720,833

$

12,141,519

$

12,328,811

 

MEMO: Interest-bearing Liabilities

$

7,891,028

$

7,112,754

$

7,810,109

$

7,994,832

   

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

Three Months Ended

March

March

December

Quarterly Share Data:

2015

2014

2014

 

Earnings Per Share:

Basic

$

0.50

$

0.48

$

0.48

Diluted

$

0.50

$

0.48

$

0.48

 

Common Dividend Declared Per Share

$

0.32

$

0.32

$

0.32

 

High Common Stock Price

$

38.88

$

32.08

$

38.00

Low Common Stock Price

$

33.25

$

28.23

$

30.39

 

Average Shares Outstanding (Net of Treasury Stock):

Basic

69,207,508

62,434,749

69,088,844

Diluted

69,476,844

62,707,328

69,355,086

 

Memorandum Items:

 

Tax Applicable to Security Sales/Calls

$

17

$

288

$

431

 

Common Dividends

$

22,211

$

22,085

$

22,165

 

Dividend Payout Ratio

64.14%

73.31%

66.65%

 

March

March

December

EOP Share Data:

 

2015

 

2014

 

2014

 

Book Value Per Share

$

24.17

$

23.40

$

23.90

Tangible Book Value Per Share (1)

$

13.64

$

12.78

$

13.35

 

52-week High Common Stock Price

$

38.88

$

32.71

$

38.00

Date

03/18/15

11/29/13

12/30/14

52-week Low Common Stock Price

$

28.19

$

24.46

$

28.23

Date

05/07/14

05/01/13

02/03/14

 

EOP Shares Outstanding (Net of Treasury Stock):

69,437,341

69,055,157

69,295,859

 

Memorandum Items:

 

EOP Employees (full-time equivalent)

1,708

1,790

1,703

 

Note:

(1) Tangible Book Value Per Share:

Total Shareholders’ Equity (GAAP)

$

1,678,058

$

1,616,123

$

1,656,160

Less: Total Intangibles

 

(730,657)

 

(733,762)

 

(731,054)

Tangible Equity (non-GAAP)

$

947,401

$

882,361

$

925,106

  EOP Shares Outstanding (Net of Treasury Stock)

69,437,341

69,055,157

69,295,859

Tangible Book Value Per Share (non-GAAP)

$

13.64

$

12.78

$

13.35

   

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

Three Months Ended

March

March

December

2015

2014

2014

Selected Yields and Net Interest Margin:

Net Loans

4.35%

4.50%

4.55%

Investment Securities

2.93%

2.59%

3.02%

Money Market Investments/FFS

0.26%

0.23%

0.27%

Average Earning Assets Yield

3.98%

4.13%

4.19%

Interest-bearing Deposits

0.43%

0.46%

0.44%

Short-term Borrowings

0.25%

0.24%

0.21%

Long-term Borrowings

1.01%

1.56%

1.39%

Average Liability Costs

0.50%

0.56%

0.56%

Net Interest Spread

3.48%

3.57%

3.63%

Net Interest Margin

3.61%

3.70%

3.77%

 

Selected Financial Ratios:

 

Return on Average Common Equity

8.38%

8.57%

7.88%

Return on Average Assets

1.16%

1.14%

1.09%

Loan / Deposit Ratio

99.63%

102.20%

100.65%

Allowance for Loan Losses/ Loans, net of unearned income

0.84%

0.85%

0.83%

Allowance for Credit Losses (1)/ Loans, net of unearned
income

0.85%

0.87%

0.85%

Nonaccrual Loans / Loans, net of unearned income

0.84%

0.69%

0.82%

90-Day Past Due Loans/ Loans, net of unearned income

0.18%

0.32%

0.13%

Non-performing Loans/ Loans, net of unearned income

1.26%

1.10%

1.20%

Non-performing Assets/ Total Assets

1.25%

1.18%

1.20%

Primary Capital Ratio

14.36%

14.15%

13.97%

Shareholders’ Equity Ratio

13.82%

13.60%

13.43%

Price / Book Ratio

1.56

x

1.31

x

1.57

x

Price / Earnings Ratio

18.85

x

15.93

x

19.50

x

Efficiency Ratio

51.05%

54.64%

53.37%

 

Note:

(1) 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)

 

 

 

March

March

December

Asset Quality Data:

2015

2014

2014

 

EOP Non-Accrual Loans

$

75,872

$

60,207

$

75,051

EOP 90-Day Past Due Loans

16,288

27,812

11,675

EOP Restructured Loans (2)

 

22,191

 

8,106

 

22,234

Total EOP Non-performing Loans

$

114,351

$

96,125

$

108,960

 

EOP Other Real Estate & Assets Owned

 

37,550

 

43,792

 

38,778

Total EOP Non-performing Assets

$

151,901

$

139,917

$

147,738

 

Three Months Ended

March

March

December

Allowance for Credit Losses:(1)

2015

2014

2014

Beginning Balance

$

77,047

$

76,341

$

77,198

Provision for Credit Losses (3)

 

5,311

 

4,662

 

6,350

82,358

81,003

83,548

Gross Charge-offs

(6,108)

(5,348)

(8,246)

Recoveries

 

798

 

809

 

1,745

Net Charge-offs

 

(5,310)

 

(4,539)

 

(6,501)

Ending Balance

$

77,048

$

76,464

$

77,047

Notes: (1) Includes allowances for loan losses and lending-related
commitments.

(2) Restructured loans with an aggregate balance of $9,716, $844 and
$4,194 at March 31,

2015, March 31, 2014 and December 31, 2014, respectively, were on nonaccrual status,

but are not included in the “EOP Non-Accrual Loans.”

(3) Includes the Provision for Loan Losses and a provision for
lending-related commitments

included in Other Expenses.


           

SOURCE: United Bankshares, Inc.

           

United Bankshares, Inc. 
W. Mark Tatterson, Chief Financial Officer
800.445.1347 x 8716

With Economy Uncertain, No Fed Rate Hike Is Seen Before Fall

The Gilmer Free Press

WASHINGTON, D.C. — For 6½ years, the Federal Reserve has held its key interest rate near zero, and for nearly that long the financial world has speculated about when the Fed will start raising it.

Don’t look for it soon.

That’s the view of most economists, who say a still-subpar economy and still-low inflation will keep rates at record lows at least until September.

On Wednesday, the Fed could clarify its plans after ending its latest policy meeting. Analysts caution, though, against expecting any specific guidance on the Fed’s timetable for a rate hike. Too many uncertainties still surround the U.S. economy. The Fed’s policymakers may want to leave themselves maneuvering room until their view of the economy’s health becomes clearer.

After its March meeting, the Fed opened the door to a rate increase this year by no longer saying it would be “patient” in starting to raise its benchmark rate. Most economists had said that dropping “patient” from its statement would mean the Fed could raise rates as soon as June — a step that would course through the economy and could slow borrowing and squeeze stocks and bonds.

Yet at a news conference later, Chair Janet Yellen stressed that while the Fed had removed “patient” to describe its approach to raising rates, it still hadn’t decided when to start raising them. Yellen said any decision would depend mainly on what the latest economic data showed. And the data since then has been disappointing.

Employers added just 126,000 workers last month, the fewest since December 2013, breaking a 12-month streak of gains above 200,000. Gauges of manufacturing, housing and consumer spending of late have been weak to modest.

A sharp drop in oil and gasoline prices had been expected to help boost consumer spending. So far, it hasn’t. The economic impact has been mainly negative — layoffs by oil-industry states and cutbacks in investments by energy companies.

As a result, economists have been downgrading their growth estimates for the January-March quarter. Many now peg growth last quarter at a sluggish annual rate below 1 percent. That would be the weakest since the economy shrank in last year’s first quarter amid a brutal winter.

Harsh weather inflicted damage early this year, too, as did supply disruptions caused by a labor dispute at West Coast ports. But the biggest drag on the economy has been a sustained rise in the dollar’s value.

The stronger dollar has hurt American manufacturers by making their goods costlier overseas. It’s also made cheaper foreign imports more competitive in the United States, thereby squeezing sales of U.S. companies and depressing profits. Lower import prices have helped hold U.S. inflation below the Fed’s long-run target of 2% rate.

William Dudley, president of the Federal Reserve Bank of New York, suggested last week that the stronger dollar would likely depress growth this year. Dudley’s comments and others by Fed officials have fed the growing belief that a Fed rate hike before fall is unlikely.

In the midst of this week’s Fed’s meeting, the government will issue its first estimate of growth for the first quarter. The figure is expected to fall below the modest 2.2% annual rate for the October-December quarter. But economists foresee a rebound in the current quarter and the rest of the year to a rate of around 3 percent.

If those forecasts prove accurate, the Fed could grow more confident about starting to raise rates for the first time since 2006.

Once the Fed does start raising rates, it’s expected to do so very gradually.

On the other hand, the timetable for a rate hike could be delayed if growth doesn’t pick up or if some crisis should erupt. One such threat could be a Greek debt default that spooks financial markets.

Whenever it decides to boost rates, the Fed is expected to signal the action well in advance.

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