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United Bankshares, Inc. Announces Earnings

UBSI | April 27, 2017

United Bankshares, Inc. Announces Earnings

United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today announced earnings for the first quarter of 2017. Earnings for the first quarter of 2017 were $38.8 million or $0.48 per diluted share as compared to earnings of $34.7 million or $0.50 per diluted share for the first quarter of 2016. The decrease in earnings per share was primarily a result of 4,330,000 common shares issued in a $199.9 million public offering completed in December of 2016.

United’s first quarter of 2017 results produced an annualized return on average assets of 1.09% and an annualized return on average equity of 6.98%. United’s annualized returns on average assets and average equity were 1.13% and 8.06%, respectively, for the first quarter of 2016.

“For the first quarter of 2017, we increased before tax earnings to $59.0 million from $52.6 million for last year’s first quarter,” stated Richard M. Adams, United’s Chairman and Chief Executive Officer. “Despite a decrease in the earnings per share due to the issuance of shares in a public offering, our profitability remains strong. We outperformed our peers based upon our return on average assets of 1.1% compared to the Federal Reserve peer group’s return on average assets of 0.90%.”

On June 3, 2016, United completed its acquisition of Bank of Georgetown of Washington, D.C. The results of operations of Bank of Georgetown are included in the consolidated results of operations from the date of acquisition. As a result, the first quarter of 2017 was impacted by increased levels of average balances, income, and expense as compared to the first quarter of 2016. At consummation, Bank of Georgetown had assets of approximately $1.3 billion, loans of $999.8 million, and deposits of $971.4 million. On April 21, 2017, United consummated its acquisition of Cardinal Financial Corporation (“Cardinal”). While the first quarter of 2017 does not include the consolidated results of Cardinal, the quarter did include $1.2 million of merger expenses related to the acquisition of Cardinal.

“We were pleased to announce the completion of our acquisition of Cardinal,” stated Mr. Adams. “We believe the acquisition will be accretive to future earnings.”

Net interest income for the first quarter of 2017 was $107.6 million, which was an increase of $9.3 million or 10% from the first quarter of 2016. The $9.3 million increase in net interest income occurred because total interest income increased $12.3 million while total interest expense only increased $2.9 million from the first quarter of 2016. Tax-equivalent net interest income, which adjusts for the tax-favored status of income from certain loans and investments, for the first quarter of 2017 was $109.2 million, an increase of $9.4 million or 9% from the first quarter of 2016 due mainly to an increase in average earning assets from the Bank of Georgetown acquisition. Average earning assets for the first quarter of 2017 increased $1.9 billion or 17% from the first quarter of 2016 due mainly to a $953 million or 10% increase in average net loans. Average short-term investments increased $729.0 million or 141% while average investment securities increased $173.8 million or 15%. Partially offsetting the increases to tax-equivalent net interest income for the first quarter of 2017 was a decrease of 16 basis points in the average yield on earning assets. This decrease was due mainly to a shift in the mix of earning assets and a lower yield on the re-investment of maturing securities. The yield on average net loans held constant year-over-year at 4.34%. In addition, the average cost of funds increased 7 basis points due to higher market interest rates as compared to the first quarter of 2016. The net interest margin of 3.43% for the first quarter of 2017 was a decrease of 21 basis points from the net interest margin of 3.64% for the first quarter of 2016.

On a linked-quarter basis, net interest income for the first quarter of 2017 decreased $5.6 million or 5% from the fourth quarter of 2016. The $5.6 million decrease in net interest income occurred because total interest income decreased $4.9 million while total interest expense increased $770 thousand from the fourth quarter of 2016. United’s tax-equivalent net interest income for the first quarter of 2017 also decreased $5.6 million or 5% from the fourth quarter of 2016 due mainly to a decrease in the average yield on earning assets. The yield on average earning assets for the first quarter of 2017 decreased 15 basis points from the fourth quarter of 2016 due mainly to a lower yield on loans as a result of the loan accretion on acquired loans declining $3.9 million to $4.2 million. In addition, the average cost of funds increased 4 basis points from the fourth quarter of 2016 due to higher market interest rates. Partially offsetting the decreases to tax-equivalent net interest income for the first quarter of 2017 was an increase in average earning assets of $218.5 million or 2% as compared to the fourth quarter of 2016. Average short-term investments increased $316.5 million for the linked-quarter while average net loans and average investment securities were relatively flat. The net interest margin of 3.43% for the first quarter of 2017 was a decrease of 19 basis points from the net interest margin of 3.62% for the fourth quarter of 2016.

For the quarters ended March 31, 2017 and 2016, the provision for loan losses was $5.9 million and $4.0 million, respectively. Net charge-offs were $5.8 million for the first quarter of 2017 as compared to net charge-offs of $4.3 million for the first quarter of 2016. Annualized net charge-offs as a percentage of average loans were 0.23% for the first quarter of 2017 as compared to 0.27% for United’s Federal Reserve peer group (bank holding companies with total assets over $10 billion) for the year of 2016. On a linked-quarter basis, the provision for loans losses increased $80 thousand while net charge-offs increased $90 thousand from the fourth quarter of 2016.

Noninterest income for the first quarter of 2017 was $20.1 million, which was an increase of $3.8 million or 23% from the first quarter of 2016. Included in the results for the first quarter of 2017 was a net gain of $3.8 million on the redemption of an investment security. Fees from deposit services decreased $267 thousand mainly due to lower income from overdraft fees. Otherwise, changes in the other major noninterest income line items were relatively insignificant.

On a linked-quarter basis, noninterest income for the first quarter of 2017 increased $3.5 million or 21% from the fourth quarter of 2016 due mainly to the previously mentioned net gain of $3.8 million on the redemption of an investment security in the first quarter of 2017. Otherwise, fees from deposit services declined $483 thousand because of a decrease in overdraft fees and fees from bankcard services declined $577 thousand due to a decrease in volume, both due to seasonality. Partially offsetting these decreases were increases of $401 thousand in income from trust and brokerage services due to increased volume and $336 thousand in income from bank-owned life insurance policies due an increase the cash surrender value.

Noninterest expense for the first quarter of 2017 was $62.8 million, which represents an increase of $4.8 million or 8% from the first quarter of 2016. Employee compensation and employee benefits increased $1.2 million and $862 thousand due mainly to an increase in employees. In addition, other real estate owned (OREO) expense increased $765 thousand due mainly to a decline in the value of OREO properties and net occupancy expense increased $531 thousand due to higher building rental expense from the branches acquired in the Bank of Georgetown merger. In addition, merger expenses related the Bank of Georgetown and Cardinal acquisitions increased $1.0 million from the first quarter of 2016.

On a linked-quarter basis, noninterest expense for the first quarter of 2017 was relatively flat from the fourth quarter of 2016, increasing $334 thousand or less than 1%. This slight increase was due primarily to increases in merger expenses of $708 thousand from the Cardinal acquisition, consulting fees of $571 thousand, OREO expense of $224 thousand due to a decline in the fair value of properties and net occupancy expense of $200 thousand due to higher building rental expense. Partially offsetting these increases were decreases of $687 thousand in employee compensation due to lower employee incentives expense, $495 thousand in equipment expense due to lower depreciation expense and $456 thousand in Federal Deposit Insurance Corporation (FDIC) expense due to a reduction in the assessment rate.

For the first quarter of 2017, income tax expense was $20.2 million, an increase of $2.3 million from the first quarter of 2016 mainly due to higher pretax earnings and a slightly higher effective tax rate. On a linked-quarter basis, income tax expense decreased $2.3 million due to lower pretax earnings and a lower effective tax rate. United’s effective tax rate was approximately 34.3% for the first quarter of 2017 and 34.0% and 36.5% for the first and fourth quarters of 2016, respectively. The higher effective tax rate for the fourth quarter of 2016 was due to adjustments to United’s tax reserves that were discrete to the fourth quarter.

United’s asset quality continues to be sound. At March 31, 2017, nonperforming loans were $121.3 million, or 1.17% of loans, net of unearned income as compared to nonperforming loans of $113.3 million, or 1.10% of loans, net of unearned income, at December 31, 2016. As of March 31, 2017, the allowance for loan losses was $72.9 million or 0.70% of loans, net of unearned income, as compared to $72.8 million or 0.70% of loans, net of unearned income, at December 31, 2016. United’s allowance for loan losses as a percentage of non-acquired loans, net of unearned income at March 31, 2017 was 0.88% as compared to 0.90% at December 31, 2016. Total nonperforming assets of $151.2 million, including OREO of $29.9 million at March 31, 2017, represented 1.02% of total assets.

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 14.9% at March 31, 2017 while its estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 12.3%, 14.3% and 12.1%, respectively. 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%.

As of March 31, 2017, United had consolidated assets of approximately $14.8 billion. Currently, United has 145 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, 2017 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, 2017 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, the allowance for loan losses as a percentage of non-acquired loans, 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%.

In accordance with accounting rules, United is unable to carry-over an acquired banking company’s previously established allowance for loan losses because acquired loans are recorded at fair value. Therefore, due to this acquisition accounting impact on the allowance for loans losses as well as loans, net of unearned income, management believes that excluding acquired loans in the calculation of the allowance for loan losses as a percentage of loans, net of unearned income reflects the difference in the accounting rules for acquired loans and originated loans as well as provides for improved comparability to prior periods and to other financial institutions without acquired loans.

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 2017			March 31 2016			December 31 2016
EARNINGS SUMMARY:
Interest income	$	120,758		$	108,496		$	125,621
Interest expense		13,138			10,212			12,368
Net interest income		107,620			98,284			113,253
Provision for loan losses		5,899			4,035			5,819
Noninterest income		20,146			16,392			16,652
Noninterest expense		62,842			58,056			62,508
Income before income taxes		59,025			52,585			61,578
Income taxes		20,216			17,879			22,472
Net income	$	38,809		$	34,706		$	39,106

PER COMMON SHARE:
Net income:
Basic	$	0.48		$	0.50		$	0.51
Diluted		0.48			0.50			0.51
Cash dividends		0.33			0.33			0.33
Book value		27.76			24.89			27.59
Closing market price	$	42.25		$	36.70		$	46.25
Common shares outstanding:
Actual at period end, net of treasury shares		81,151,257			69,706,341			81,039,974
Weighted average- basic		80,902,368			69,497,489			76,863,906
Weighted average- diluted		81,306,540			69,714,121			77,303,310

FINANCIAL RATIOS:
Return on average assets		1.09	%		1.13	%		1.10	%
Return on average shareholders’ equity		6.98	%		8.06	%		7.50	%
Average equity to average assets		15.66	%		14.02	%		14.62	%
Net interest margin		3.43	%		3.64	%		3.62	%

	March 31 2017			March 31 2016			December 31 2016
PERIOD END BALANCES:
Assets	$	14,762,315		$	12,606,884		$	14,508,892
Earning assets		13,195,916			11,268,979			12,939,508
Loans, net of unearned income		10,409,041			9,378,393			10,341,137
Loans held for sale		3,581			5,395			8,445
Investment securities		1,373,411			1,207,310			1,403,638
Total deposits		11,062,329			9,324,568			10,796,867
Shareholders’ equity		2,252,859			1,735,037			2,235,747


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
	2017			2016			2016

Interest & Loan Fees Income (GAAP)	$	120,758		$	108,496		$	125,621
Tax equivalent adjustment		1,564			1,493			1,559
Interest & Fees Income (FTE) (non-GAAP)		122,322			109,989			127,180
Interest Expense		13,138			10,212			12,368
Net Interest Income (FTE) (non-GAAP)		109,184			99,777			114,812

Provision for Loan Losses		5,899			4,035			5,819

Non-Interest Income:
Fees from trust & brokerage services		4,886			4,869			4,485
Fees from deposit services		7,706			7,973			8,189
Bankcard fees and merchant discounts		884			838			1,461
Other charges, commissions, and fees		477			429			334
Income from bank owned life insurance		1,217			1,180			881
Mortgage banking income		675			728			951
Other non-interest revenue		361			371			289
Net other-than-temporary impairment losses		(44	)		0			0
Net gains on sales/calls of investment securities		3,984			4			62
Total Non-Interest Income		20,146			16,392			16,652

Non-Interest Expense:
Employee compensation		23,471			22,279			24,158
Employee benefits		7,465			6,603			7,585
Net occupancy		6,784			6,253			6,584
Data processing		4,043			3,551			4,276
Amortization of intangibles		1,048			745			1,158
OREO expense		1,414			649			1,190
FDIC expense		1,751			2,120			2,207
Other expenses		16,866			15,856			15,350
Total Non-Interest Expense		62,842			58,056			62,508

Income Before Income Taxes (FTE) (non-GAAP)		60,589			54,078			63,137

Tax equivalent adjustment		1,564			1,493			1,559

Income Before Income Taxes (GAAP)		59,025			52,585			61,578

Taxes		20,216			17,879			22,472

Net Income	$	38,809		$	34,706		$	39,106

MEMO: Effective Tax Rate		34.25	%		34.00	%		36.49	%


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
	2017			2016			March 31			December 31
	Q-T-D Average			Q-T-D Average			2017			2016

Cash & Cash Equivalents	$	1,409,452		$	667,631		$	1,667,328		$	1,434,527

Securities Available for Sale		1,226,460			1,061,101			1,229,363			1,259,214
Securities Held to Maturity		30,739			39,085			30,350			33,258
Other Investment Securities		111,657			94,835			113,698			111,166
Total Securities		1,368,856			1,195,021			1,373,411			1,403,638
Total Cash and Securities		2,778,308			1,862,652			3,040,739			2,838,165

Loans Held for Sale		4,255			6,083			3,581			8,445

Commercial Loans		7,739,095			7,063,371			7,800,532			7,783,478
Mortgage Loans		1,929,533			1,843,646			1,923,361			1,938,707
Consumer Loans		664,504			473,391			700,963			634,534

Gross Loans		10,333,132			9,380,408			10,424,856			10,356,719

Unearned Income		(15,772	)		(15,054	)		(15,815	)		(15,582	)

Loans, Net of Unearned Income		10,317,360			9,365,354			10,409,041			10,341,137

Allowance for Loan Losses		(72,843	)		(75,674	)		(72,875	)		(72,771	)

Goodwill		863,763			710,252			863,767			863,767
Other Intangibles		22,468			17,497			21,907			22,954
Total Intangibles		886,231			727,749			885,674			886,721

Real Estate Owned		31,407			33,638			29,902			31,510
Other Assets		461,015			429,136			466,253			475,685
Total Assets	$	14,405,733		$	12,348,938		$	14,762,315		$	14,508,892

MEMO: Earning Assets	$	12,865,148		$	11,009,263		$	13,195,916		$	12,939,508

Interest-bearing Deposits	$	7,596,533		$	6,586,241		$	7,722,394		$	7,625,026
Noninterest-bearing Deposits		3,090,248			2,662,307			3,339,935			3,171,841
Total Deposits		10,686,781			9,248,548			11,062,329			10,796,867

Short-term Borrowings		226,718			278,342			178,983			209,551
Long-term Borrowings		1,164,119			1,022,868			1,161,967			1,172,026
Total Borrowings		1,390,837			1,301,210			1,340,950			1,381,577

Other Liabilities		71,632			67,504			106,177			94,701
Total Liabilities		12,149,250			10,617,262			12,509,456			12,273,145

Preferred Equity		---			---			---			---
Common Equity		2,256,483			1,731,676			2,252,859			2,235,747
Total Shareholders’ Equity		2,256,483			1,731,676			2,252,859			2,235,747

Total Liabilities & Equity	$	14,405,733		$	12,348,938		$	14,762,315		$	14,508,892

MEMO: Interest-bearing Liabilities	$	8,987,370		$	7,887,451		$	9,063,344		$	9,006,603


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:	2017			2016			2016

Earnings Per Share:
Basic	$	0.48		$	0.50		$	0.51
Diluted	$	0.48		$	0.50		$	0.51

Common Dividend Declared Per Share	$	0.33		$	0.33		$	0.33

High Common Stock Price	$	47.30		$	37.85		$	49.35
Low Common Stock Price	$	39.45		$	32.22		$	36.52

Average Shares Outstanding (Net of Treasury Stock):
Basic		80,902,368			69,497,489			76,863,906
Diluted		81,306,540			69,714,121			77,303,310

Memorandum Items:

Tax Applicable to Security Sales/Calls	$	1,474		$	1		$	23

Common Dividends	$	26,777		$	23,001		$	25,315

Dividend Payout Ratio		69.00	%		66.27	%		64.73	%

	March			March			December
EOP Share Data:	2017			2016			2016

Book Value Per Share	$	27.76		$	24.89		$	27.59
Tangible Book Value Per Share ⁽¹⁾	$	16.85		$	14.46		$	16.65

52-week High Common Stock Price	$	49.35		$	43.43		$	49.35
Date		12/12/16			07/23/15			12/12/16
52-week Low Common Stock Price	$	34.50		$	32.22		$	32.22
Date		06/27/16			02/11/16			02/11/16

EOP Shares Outstanding (Net of Treasury Stock):		81,151,257			69,706,341			81,039,974

Memorandum Items:

EOP Employees (full-time equivalent)		1,718			1,670			1,701

Note:
(1) Tangible Book Value Per Share:
Total Shareholders’ Equity (GAAP)	$	2,252,859		$	1,735,037		$	2,235,747
Less: Total Intangibles		(885,674	)		(727,347	)		(886,721	)
Tangible Equity (non-GAAP)	$	1,367,185		$	1,007,690		$	1,349,026
÷ EOP Shares Outstanding (Net of Treasury Stock)		81,151,257			69,706,341			81,039,974
Tangible Book Value Per Share (non-GAAP)	$	16.85		$	14.46		$	16.65


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
	2017				2016				2016
Selected Yields and Net Interest Margin:
Net Loans		4.34	%			4.34	%			4.50	%
Investment Securities		2.84	%			3.01	%			2.68	%
Money Market Investments/FFS		0.87	%			0.48	%			0.48	%
Average Earning Assets Yield		3.85	%			4.01	%			4.00	%
Interest-bearing Deposits		0.45	%			0.42	%			0.43	%
Short-term Borrowings		0.54	%			0.31	%			0.40	%
Long-term Borrowings		1.52	%			1.22	%			1.38	%
Average Liability Costs		0.59	%			0.52	%			0.55	%
Net Interest Spread		3.26	%			3.49	%			3.45	%
Net Interest Margin		3.43	%			3.64	%			3.62	%

Selected Financial Ratios:

Return on Average Common Equity		6.98	%			8.06	%			7.50	%
Return on Average Assets		1.09	%			1.13	%			1.10	%
Loan / Deposit Ratio		94.09	%			100.58	%			95.78	%
Allowance for Loan Losses/ Loans, net of unearned income		0.70	%			0.80	%			0.70	%
Allowance for Loan Losses/ Non-acquired Loans, net of unearned income ⁽¹⁾		0.88	%			0.98	%			0.90	%
Allowance for Credit Losses ⁽²⁾/ Loans, net of unearned income		0.71	%			0.82	%			0.71	%
Nonaccrual Loans / Loans, net of unearned income		0.87	%			0.99	%			0.81	%
90-Day Past Due Loans/ Loans, net of unearned income		0.06	%			0.08	%			0.08	%
Non-performing Loans/ Loans, net of unearned income		1.17	%			1.33	%			1.10	%
Non-performing Assets/ Total Assets		1.02	%			1.22	%			1.00	%
Primary Capital Ratio		15.68	%			14.28	%			15.84	%
Shareholders' Equity Ratio		15.26	%			13.76	%			15.41	%
Price / Book Ratio		1.52		x		1.47		x		1.68		x
Price / Earnings Ratio		22.13		x		18.43		x		23.24		x
Efficiency Ratio		49.19	%			50.63	%			48.12	%

Notes:
(1) Allowance for Loan Losses (GAAP)	$	72,875			$	75,490			$	72,771

Loans, net of unearned income (GAAP)		10,409,041				9,378,393				10,341,137
Less: Acquired Loans (non-GAAP)		(2,170,285	)			(1,698,353	)			(2,275,601	)
Non-Acquired Loans, net of unearned income (non-GAAP)	$	8,238,756			$	7,680,040			$	8,065,536

Allowance for Loan Losses/ Non-acquired Loans, Net of Unearned Income (non-GAAP)		0.88	%			0.98	%			0.90	%

(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)

	March			March			December
Asset Quality Data:	2017			2016			2016
EOP Non-Accrual Loans	$	90,596		$	92,901		$	83,525
EOP 90-Day Past Due Loans		6,714			7,891			8,586
EOP Restructured Loans ⁽¹⁾		24,028			24,156			21,152
Total EOP Non-performing Loans	$	121,338		$	124,948		$	113,263

EOP Other Real Estate & Assets Owned		29,902			28,981			31,510
Total EOP Non-performing Assets	$	151,240		$	153,929		$	144,773

	Three Months Ended
	March			March			December
Allowance for Loan Losses:	2017			2016			2016
Beginning Balance	$	72,771		$	75,726		$	72,657
Provision for Loan Losses		5,899			4,035			5,819
		78,670			79,761			78,476
Gross Charge-offs		(7,285	)		(6,946	)		(8,655	)
Recoveries		1,490			2,675			2,950
Net Charge-offs		(5,795	)		(4,271	)		(5,705	)
Ending Balance	$	72,875		$	75,490		$	72,771
Reserve for lending-related commitments		902			1,193			1,044
Allowance for Credit Losses ⁽²⁾	$	73,777		$	76,683		$	73,815


Notes:	(1)	Restructured loans with an aggregate balance of $11,522, $11,450 and $11,106 at March 31, 2017, March 31, 2016 and December 31, 2016, respectively, were on nonaccrual status, but are not included in the “EOP Non-Accrual Loans.”
	(2)	Includes allowances for loan losses and lending-related commitments.