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United Bankshares, Inc. Announces Earnings for the Third Quarter and First Nine Months of 2018

UBSI | October 25, 2018

United Bankshares, Inc. Announces Earnings for the Third Quarter and First Nine Months of 2018

United Bankshares, Inc. (NASDAQ: UBSI), today reported earnings for the third quarter and the first nine months of 2018. Earnings for the third quarter of 2018 were $64.4 million as compared to earnings of $56.7 million for the third quarter of 2017. Diluted earnings per share were $0.62 for the third quarter of 2018 as compared to diluted earnings per share of $0.54 for the third quarter of 2017. Earnings for the first nine months of 2018 were a record $192.4 million as compared to earnings of $132.6 million for the first nine months of 2017. Diluted earnings per share were $1.83 for the first nine months of 2018 as compared to diluted earnings per share of $1.39 per diluted share for the first nine months of 2017.

Third quarter of 2018 results produced an annualized return on average assets of 1.34% and an annualized return on average equity of 7.83%, respectively. For the first nine months of 2018, United’s return on average assets was 1.37% while the return on average equity was 7.86%. United’s annualized returns on average assets and average equity were 1.19% and 6.89%, respectively, for the third quarter of 2017 while the returns on average assets and average equity were 1.03% and 6.22%, respectively, for the first nine months of 2017.

“Our earnings continue to be strong, achieving record earnings and outperforming peer profitability,” stated Richard M. Adams, United’s Chairman of the Board and Chief Executive Officer.

On April 21, 2017, United completed its acquisition of Cardinal Financial Corporation (Cardinal) of Tysons Corner, Virginia. The results of operations of Cardinal are included in the consolidated results of operations from the date of acquisition. As a result of the Cardinal acquisition, the first nine months of 2018 were impacted by increased levels of average balances, income, and expense as compared to the first nine months of 2017. In addition, the third quarter and first nine months of 2017 included $532 thousand and $25.0 million, respectively, of merger-related expenses from the Cardinal acquisition.

Net interest income for the third quarter of 2018 was $148.8 million, which was a decrease of $1.5 million or 1% from the third quarter of 2017. Tax-equivalent net interest income, which adjusts for the tax-favored status of income from certain loans and investments, for the third quarter of 2018 was $149.8 million, a decrease of $2.5 million or 2% from the third quarter of 2017 due mainly to an increase of 54 basis points in the average cost of funds as compared to the third quarter of 2017 due to higher market interest rates.

In addition, loan accretion on acquired loans was $11.6 million and $12.8 million for the third quarter of 2018 and 2017, respectively, decreasing $1.2 million or 10%. Partially offsetting these decreases to tax-equivalent net interest income for the third quarter of 2018 was an increase of 26 basis points in the average yield on earning assets as compared to the third quarter of 2017 due to higher market interest rates. In addition, average earning assets for the third quarter of 2018 increased $172.5 million or 1% from the third quarter of 2017 due mainly to an increase of $491.9 million or 27% in average investment securities. Partially offsetting this increase was a decrease in average short-term investments of $335.3 million or 27%. Average net loans remained flat for the third quarter, increasing $15.9 million or less than 1% from the third quarter of 2017. The net interest margin of 3.56% for the third quarter of 2018 was a decrease of 9 basis points from the net interest margin of 3.65% for the third quarter of 2017.

Net interest income for the first nine months of 2018 was $441.9 million, which was an increase of $47.8 million or 12% from the first nine months of 2017. Tax-equivalent net interest income for the first nine months of 2018 was $445.2 million, an increase of $44.9 million or 11% from the first nine months of 2017. This increase in tax-equivalent net interest income was primarily attributable to an increase in average earning assets from the Cardinal acquisition. Average earning assets increased $1.3 billion or 8% from the first nine months of 2017 as average net loans increased $1.1 billion or 9% for the first nine months of 2018. Average investment securities increased $613.1 million or 37% while short-term investments decreased $436.1 million or 34%. The first nine months of 2018 average yield on earning assets increased 34 basis points from the first nine months of 2017 due to higher market interest rates and additional loan accretion of $10.0 million on acquired loans. Loan accretion was $34.4 million and $24.4 million for the first nine months of 2018 and 2017, respectively. Partially offsetting the increases to tax-equivalent net interest income for the first nine months of 2018 was an increase of 39 basis points in the average cost of funds as compared to the first nine months of 2017 due to higher market interest rates. The net interest margin of 3.61% for the first nine months of 2018 was an increase of 9 basis points from the net interest margin of 3.52% for the first nine months of 2017.

On a linked-quarter basis, net interest income for the third quarter of 2018 was relatively flat from the second quarter of 2018, decreasing $347 thousand or less than 1%. United’s tax-equivalent net interest income for the third quarter of 2018 was also relatively flat, decreasing $413 thousand or less than 1% due to a combination of a $265.9 million or 2% increase in interest bearing funds and an increase of 22 basis points in the average cost of funds as a result of higher market interest rates. In addition, loan accretion on acquired loans decreased $497 thousand. Partially offsetting these increases to tax-equivalent net interest income for the third quarter of 2018 was a $334.5 million or 2% increase in the average earning assets and a 5 basis points increase in the yield on average earning assets. Specifically, average short-term investments increased $262.1 million or 40%. Average net loans and average investment securities were relatively flat for the third quarter of 2018, increasing $80.2 million and decreasing $7.8 million, respectively from the second quarter of 2018. The net interest margin of 3.56% for the third quarter of 2018 decreased 11 basis points from the net interest margin of 3.67% for the second quarter of 2018.

For the quarters ended September 30, 2018 and 2017, the provision for loan losses was $4.8 million and $7.3 million, respectively, while the provision for the first nine months of 2018 was $16.2 million as compared to $21.4 million for the first nine months of 2017. Net charge-offs were $5.0 million and $15.9 million for the third quarter and first nine months of 2018, respectively, as compared to $5.3 million and $19.3 million for the third quarter and first nine months of 2017, respectively. Annualized net charge-offs as a percentage of average loans were 0.15% and 0.16% for the third quarter and first nine months of 2018, respectively. On a linked-quarter basis, the provision for loan losses decreased $1.4 million while net charge-offs decreased $720 thousand from the second quarter of 2018.

Noninterest income for the third quarter of 2018 was $31.7 million, which was a decrease of $6.5 million or 17% from the third quarter of 2017. The decrease was due mainly to a decrease of $7.1 million in income from mortgage banking activities due to decreased production and sales of mortgage loans in the secondary market by United’s mortgage banking subsidiary, George Mason. However, George Mason did originate approximately $178.3 million of portfolio mortgage loan products for United Bank during the third quarter of 2018. In addition, net gains and losses on investment securities’ activity declined $619 thousand.

Noninterest income for the first nine months of 2018 was $98.9 million, which was flat from the first nine months of 2017, increasing $4 thousand or less than 1%. Income from mortgage banking activities for the first nine months of 2018 increased $2.9 million from the first nine months of 2017. This increase was mainly due to including the production and sales of mortgage loans in the secondary market by George Mason for nine months in 2018 as compared to slightly over five months in 2017. In addition, fees from brokerage services and bankcard fees increased $1.1 million and $952 thousand, respectively, due to increased volume. Fees from trust services increased $680 thousand due to an increase in the value of managed assets while fees from deposit services increased $345 thousand mainly due to higher income from debit card and automated teller machine (ATM) fees. Mostly offsetting these increases was a decline in net gains and losses on investment securities’ activity of $5.8 million for the first nine months of 2018 from the first nine months of 2017 due mainly to a net gain of $3.8 million on the redemption of an investment security during the first quarter of 2017.

On a linked-quarter basis, noninterest income for the third quarter of 2018 decreased $4.3 million or 12% from the second quarter of 2018. The decrease was due mainly to a decrease of $5.4 million in income from mortgage banking activities due mainly to a change in fair value of $6.2 million on George Mason’s interest rate lock commitments. In addition, net gains and losses on investment securities’ activity decreased $97 thousand. Partially offsetting these decreases in noninterest income was a $834 thousand increase in fees from brokerage services as well as a $253 thousand increase in fees from deposit services and a $246 thousand increase in fees from trust services mainly due to increased volume.

Noninterest expense for the third quarter of 2018 was $93.3 million, a decrease of $3.3 million or 3% from the third quarter of 2017. In particular, employee compensation decreased $3.6 million due mainly to a decrease of $3.2 million in commissions expense, other real estate owned (OREO) expense decreased $1.8 million and merger expenses decreased $434 thousand. Partially offsetting these decreases was an increase in Federal Deposit Insurance Corporation (FDIC) insurance expense of $2.0 million as United Bank is now considered a large institution and subject to increased assessment rates. In addition, equipment expense increased $835 thousand due to increased maintenance expense and data processing expense increased $471 thousand due to additional processing.

Noninterest expense for the first nine months of 2018 was $277.2 million, an increase of $5.5 million or 2% from the first nine months of 2017 due mainly to the additional employees and branch offices from the Cardinal acquisition as most major categories of noninterest expense showed increases partially offset by a decline in the associated merger-related expenses of the acquisition. In particular, employee benefits increased $1.8 million, employee compensation increased $323 thousand, equipment expense increased $2.8 million, and data processing expense increased $2.8 million. In addition, FDIC insurance expense increased $3.2 million due to United Bank now being considered a large institution as previously mentioned. Partially offsetting these increases was a decrease in net occupancy expense of $2.3 million due to the expense for the termination of leases and the reduction in value of leasehold improvements for closed offices in the Cardinal acquisition being included in the first nine months of 2017. In addition, OREO expense decreased $2.2 million and other expense decreased $943 thousand due to a decrease in merger-related expenses.

On a linked-quarter basis, noninterest expense for the third quarter of 2018 was flat from the second quarter of 2018, decreasing $95 thousand or less than 1%. In particular, employee compensation and employee benefits decreased $1.8 million and $653 thousand, respectively, as a result of lower commissions expense and fewer employees related to a decrease in production and sales of mortgage loans at George Mason. Mostly offsetting these decreases in noninterest expense was an increase in FDIC insurance expense of $688 thousand due to United Bank now being considered a large institution as previously mentioned. In addition, equipment expense increased $613 thousand, data processing expense increased $251 thousand, OREO expense increased $365 thousand, and net occupancy expense increased $197 thousand.

For the third quarter and first nine months of 2018, income tax expense was $17.9 million and $55.1 million, respectively, as compared to $27.8 million and $67.4 million, respectively, in the third quarter and first nine months of 2017. The decreases in 2018 were mainly due to a decline in the effective tax rate as a result of the Tax Cuts and Jobs Act of 2017 (the Tax Act). On a linked-quarter basis, income tax expense for the third quarter of 2018 decreased $1.3 million from the second quarter of 2018 due to a combination of lower earnings and a lower effective tax rate. United’s effective tax rate was 21.77% for the third quarter of 2018, 22.50% for the second quarter of 2018 and 32.91% for the third quarter of 2017. For the first nine months of 2018 and 2017, United's effective tax rate was 22.25% and 33.68%, respectively. The lower effective tax rate for the time periods in 2018 was due to the impact of the Tax Act.

United’s asset quality continues to be sound. At September 30, 2018, nonperforming loans were $146.1 million, or 1.10% of loans, net of unearned income, down from nonperforming loans of $168.7 million, or 1.30% of loans, net of unearned income, at December 31, 2017. As of September 30, 2018, the allowance for loan losses was $76.9 million or 0.58% of loans, net of unearned income, as compared to $76.6 million or 0.59% of loans, net of unearned income, at December 31, 2017. Total nonperforming assets of $164.9 million, including OREO of $18.8 million at September 30, 2018, represented 0.86% of total assets as compared to nonperforming assets of $193.1 million or 1.01%, including OREO of $24.3 million at December 31, 2017.

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 14.6% at September 30, 2018 while its estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 12.4%, 12.4% and 10.3%, 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 September 30, 2018, United had consolidated assets of approximately $19.2 billion with 140 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 September 30, 2018 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 September 30, 2018 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 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% for 2018 and 35% for 2017.

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						Nine Months Ended
	September 30 2018			September 30 2017			September 30 2018			September 30 2017
EARNINGS SUMMARY:
Interest income	$	185,030		$	171,583		$	530,215		$	447,288
Interest expense		36,255			21,307			88,275			53,147
Net interest income		148,775			150,276			441,940			394,141
Provision for loan losses		4,808			7,279			16,190			21,429
Noninterest income		31,686			38,229			98,885			98,881
Noninterest expenses		93,315			96,652			277,177			271,631
Income before income taxes		82,338			84,574			247,458			199,962
Income taxes		17,926			27,836			55,066			67,356
Net income	$	64,412		$	56,738		$	192,392		$	132,606

PER COMMON SHARE:
Net income:
Basic	$	0.62		$	0.54		$	1.84		$	1.39
Diluted		0.62			0.54			1.83			1.39
Cash dividends	$	0.34		$	0.33			1.02			0.99
Book value								31.32			31.09
Closing market price							$	36.35		$	37.15
Common shares outstanding:
Actual at period end, net of treasury shares								103,805,836			104,983,126
Weighted average - basic		103,617,590			104,760,153			104,382,094			95,040,664
Weighted average - diluted		103,933,959			105,068,122			104,679,876			95,450,626

FINANCIAL RATIOS:
Return on average assets		1.34	%		1.19	%		1.37	%		1.03	%
Return on average shareholders’ equity		7.83	%		6.89	%		7.86	%		6.22	%
Average equity to average assets		17.13	%		17.25	%		17.43	%		16.58	%
Net interest margin		3.56	%		3.65	%		3.61	%		3.52	%

	September 30 2018			September 30 2017			December 31 2017			June 30 2018
PERIOD END BALANCES:
Assets	$	19,187,643		$	19,129,978		$	19,058,959		$	19,207,603
Earning assets		16,872,384			16,751,643			16,741,819			16,852,952
Loans, net of unearned income		13,276,740			13,140,468			13,011,421			13,516,629
Loans held for sale		234,196			315,031			265,955			285,194
Investment securities		2,375,512			1,836,725			2,071,645			2,266,303
Total deposits		14,091,172			13,875,297			13,830,591			13,830,766
Shareholders’ equity		3,251,128			3,263,843			3,240,530			3,242,565


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										Year to Date
	September			September		June		March			September			September
		2018		2017		2018			2018			2018			2017
Interest & Loan Fees Income (GAAP)	$	185,030		$ 171,583		$ 178,000		$	167,185		$	530,215		$	447,288
Tax equivalent adjustment		1,049		2,092		1,115			1,104			3,268			6,168
Interest & Fees Income (FTE) (non-GAAP)		186,079		173,675		179,115			168,289			533,483			453,456
Interest Expense		36,255		21,307		28,878			23,142			88,275			53,147
Net Interest Income (FTE) (non-GAAP)		149,824		152,368		150,237			145,147			445,208			400,309

Provision for Loan Losses		4,808		7,279		6,204			5,178			16,190			21,429

Non-Interest Income:
Fees from trust services		3,350		2,972		3,104			3,091			9,545			8,865
Fees from brokerage services		2,787		2,080		1,953			2,224			6,964			5,818
Fees from deposit services		8,673		8,744		8,420			8,230			25,323			24,978
Bankcard fees and merchant discounts		1,549		1,332		1,479			1,356			4,384			3,432
Other charges, commissions, and fees		532		535		599			509			1,640			1,533
Income from bank-owned life insurance		1,251		1,403		1,271			1,254			3,776			3,878
Income from mortgage banking activities		13,277		20,385		18,692			14,570			46,539			43,597
Net (losses) gains on investment securities		(152	)	467		(55	)		(485	)		(692	)		5,154
Other non-interest revenue		419		311		544			443			1,406			1,626
Total Non-Interest Income		31,686		38,229		36,007			31,192			98,885			98,881

Non-Interest Expense:
Employee compensation		41,312		44,882		43,120			40,836			125,268			124,945
Employee benefits		8,645		9,004		9,298			9,571			27,514			25,667
Net occupancy		9,273		9,364		9,076			9,427			27,776			30,061
Data processing		6,068		5,597		5,817			5,850			17,735			14,971
Amortization of intangibles		2,009		2,240		2,010			2,010			6,029			5,381
OREO expense		921		2,713		556			946			2,423			4,651
FDIC expense		3,530		1,540		2,842			1,848			8,220			5,062
Other expenses		21,557		21,312		20,691			19,964			62,212			60,893
Total Non-Interest Expense		93,315		96,652		93,410			90,452			277,177			271,631

Income Before Income Taxes (FTE) (non-GAAP)		83,387		86,666		86,630			80,709			250,726			206,130

Tax equivalent adjustment		1,049		2,092		1,115			1,104			3,268			6,168

Income Before Income Taxes (GAAP)		82,338		84,574		85,515			79,605			247,458			199,962

Taxes		17,926		27,836		19,241			17,899			55,066			67,356

Net Income	$	64,412		$ 56,738		$ 66,274		$	61,706		$	192,392		$	132,606

MEMO: Effective Tax Rate		21.77	%	32.91	%	22.50	%		22.48	%		22.25	%		33.68	%


UNITED BANKSHARES, INC. AND SUBSIDIARIES Washington, D.C. and Charleston, WV Stock Symbol: UBSI (In Thousands Except for Per Share Data)

Consolidated Balance Sheets
	September 30			September 30
		2018			2017		September 30			December 31			September 30
	Q-T-D Average			Q-T-D Average				2018			2017			2017

Cash & Cash Equivalents	$	1,105,876		$	1,443,491		$	1,254,686		$	1,666,167		$	1,747,037

Securities Available for Sale		2,087,133			1,612,335			2,178,567			1,888,756			1,649,634
Held to Maturity Securities		20,368			20,353			20,351			20,428			20,335
Equity Securities		9,734			0			9,845			0			0
Other Investment Securities		167,294			159,945			166,749			162,461			166,756
Total Securities		2,284,529			1,792,633			2,375,512			2,071,645			1,836,725
Total Cash and Securities		3,390,405			3,236,124			3,630,198			3,737,812			3,583,762

Loans held for sale		257,008			294,971			234,196			265,955			315,031

Commercial Loans		9,628,904			10,111,213			9,451,496			9,822,027			9,943,254
Mortgage Loans		2,821,722			2,488,671			2,870,840			2,443,780			2,475,092
Consumer Loans		931,226			730,798			964,375			761,530			738,508

Gross Loans		13,381,852			13,330,682			13,286,711			13,027,337			13,156,854

Unearned income		(10,928	)		(17,720	)		(9,971	)		(15,916	)		(16,386	)

Loans, net of unearned income		13,370,924			13,312,962			13,276,740			13,011,421			13,140,468

Allowance for Loan Losses		(77,103	)		(73,031	)		(76,941	)		(76,627	)		(74,926	)

Goodwill		1,478,014			1,484,488			1,478,014			1,478,380			1,487,607
Other Intangibles		40,105			52,649			38,957			44,986			47,526
Total Intangibles		1,518,119			1,537,137			1,516,971			1,523,366			1,535,133

Other Real Estate Owned		19,694			27,889			18,786			24,348			26,826
Other Assets		568,642			591,733			587,693			572,684			603,684
Total Assets	$	19,047,689		$	18,927,785		$	19,187,643		$	19,058,959		$	19,129,978

MEMO: Interest-earning Assets	$	16,746,772		$	16,574,277		$	16,872,384		$	16,741,819		$	16,751,643

Interest-bearing Deposits	$	9,588,327		$	9,837,967		$	9,620,357		$	9,535,904		$	9,741,278
Noninterest-bearing Deposits		4,338,309			4,036,653			4,470,815			4,294,687			4,134,019
Total Deposits		13,926,636			13,874,620			14,091,172			13,830,591			13,875,297

Short-term Borrowings		212,566			325,631			379,508			477,587			492,036
Long-term Borrowings		1,543,004			1,364,417			1,319,371			1,363,977			1,364,246
Total Borrowings		1,755,570			1,690,048			1,698,879			1,841,564			1,856,282

Other Liabilities		102,534			97,575			146,464			146,274			134,556
Total Liabilities		15,784,740			15,662,243			15,936,515			15,818,429			15,866,135

Preferred Equity		---			---			---			---			---
Common Equity		3,262,949			3,265,542			3,251,128			3,240,530			3,263,843
Total Shareholders' Equity		3,262,949			3,265,542			3,251,128			3,240,530			3,263,843

Total Liabilities & Equity	$	19,047,689		$	18,927,785		$	19,187,643		$	19,058,959		$	19,129,978

MEMO: Interest-bearing Liabilities	$	11,343,897		$	11,528,015		$	11,319,236		$	11,377,468		$	11,597,560


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 to Date
	September			September		June			March			September			September
		2018		2017			2018			2018			2018			2017
Quarterly/Year-to-Date Share Data:
Earnings Per Share:
Basic	$	0.62		$ 0.54		$	0.63		$	0.59		$	1.84		$	1.39
Diluted	$	0.62		$ 0.54		$	0.63		$	0.59		$	1.83		$	1.39

Common Dividend Declared Per Share:	$	0.34		$ 0.33		$	0.34		$	0.34		$	1.02		$	0.99

High Common Stock Price	$	39.95		$ 40.45		$	38.80		$	38.55		$	39.95		$	47.30
Low Common Stock Price	$	34.75		$ 31.70		$	33.40		$	33.60		$	33.40		$	31.70

Average Shares Outstanding (Net of Treasury Stock):
Basic		103,617,590		104,760,153			104,682,910			104,859,427			104,382,094			95,040,664
Diluted		103,933,959		105,068,122			104,952,788			105,162,858			104,679,876			95,450,626

Memorandum Items:

Common Dividends	$	35,303		$ 34,642		$	35,584		$	35,748		$	106,635		$	96,040

Dividend Payout Ratio		54.81	%	61.06	%		53.69	%		57.93	%		55.43	%		72.43	%

						September			September			June 30			March 31
							2018			2017			2018			2018
EOP Share Data:
Book Value Per Share						$	31.32		$	31.09		$	31.12		$	30.92
Tangible Book Value Per Share (non-GAAP) ⁽¹⁾						$	16.71		$	16.47		$	16.54		$	16.45

52-week High Common Stock Price						$	39.95		$	49.35		$	40.45		$	42.60
Date							08/21/18			12/12/16			07/03/17			04/03/17
52-week Low Common Stock Price						$	33.40		$	31.70		$	31.70		$	31.70
Date							05/01/18			09/07/17			09/07/17			09/07/17

EOP Shares Outstanding (Net of Treasury Stock):							103,805,836			104,983,126			104,203,542			105,141,170

Memorandum Items:

EOP Employees (full-time equivalent)							2,290			2,451			2,300			2,341

Note:
(1) Tangible Book Value Per Share:
Total Shareholders' Equity (GAAP)						$	3,251,128		$	3,263,843		$	3,242,565		$	3,251,313
Less: Total Intangibles							(1,516,971	)		(1,535,133	)		(1,518,980	)		(1,521,556	)
Tangible Equity (non-GAAP)						$	1,734,157		$	1,728,710		$	1,723,585		$	1,729,757
÷ EOP Shares Outstanding (Net of Treasury Stock)							103,805,836			104,983,126			104,203,542			105,141,170
Tangible Book Value Per Share (non-GAAP)						$	16.71		$	16.47		$	16.54		$	16.45



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 to Date
	September		September		June		March		September		September
	2018		2017		2018		2018		2018		2017
Selected Yields and Net Interest Margin:
Loans	4.83	%	4.61	%	4.76	%	4.63	%	4.74	%	4.46	%
Investment Securities	2.74	%	2.61	%	2.73	%	2.52	%	2.66	%	2.64	%
Money Market Investments/FFS	2.39	%	1.55	%	2.14	%	2.04	%	2.19	%	1.18	%
Average Earning Assets Yield	4.42	%	4.16	%	4.37	%	4.19	%	4.33	%	3.99	%
Interest-bearing Deposits	1.09	%	0.57	%	0.83	%	0.68	%	0.87	%	0.52	%
Short-term Borrowings	1.15	%	0.52	%	0.89	%	0.60	%	0.85	%	0.52	%
Long-term Borrowings	2.38	%	1.93	%	2.26	%	2.12	%	2.26	%	1.74	%
Average Liability Costs	1.27	%	0.73	%	1.05	%	0.85	%	1.06	%	0.67	%
Net Interest Spread	3.15	%	3.43	%	3.32	%	3.34	%	3.27	%	3.32	%
Net Interest Margin	3.56	%	3.65	%	3.67	%	3.61	%	3.61	%	3.52	%

Selected Performance Ratios:

Return on Average Common Equity	7.83	%	6.89	%	8.11	%	7.65	%	7.86	%	6.22	%
Return on Average Assets	1.34	%	1.19	%	1.42	%	1.35	%	1.37	%	1.03	%
Efficiency Ratio	51.71	%	51.27	%	50.46	%	51.62	%	51.25	%	55.10	%

			September		September		June		March		December
			2018		2017		2018		2018		2017
Selected Financial Ratios:
Loan / Deposit Ratio			94.22	%	94.70	%	97.73	%	95.15	%	94.08	%
Allowance for Loan Losses/ Loans, Net of Unearned Income			0.58	%	0.57	%	0.57	%	0.59	%	0.59	%
Allowance for Credit Losses ⁽¹⁾/ Loans, Net of Unearned Income			0.59	%	0.58	%	0.58	%	0.60	%	0.59	%
Nonaccrual Loans / Loans, Net of Unearned Income			0.50	%	0.76	%	0.55	%	0.77	%	0.84	%
90-Day Past Due Loans/ Loans, Net of Unearned Income			0.12	%	0.17	%	0.12	%	0.07	%	0.08	%
Non-performing Loans/ Loans, Net of Unearned Income			1.10	%	1.28	%	1.12	%	1.21	%	1.30	%
Non-performing Assets/ Total Assets			0.86	%	1.02	%	0.90	%	0.97	%	1.01	%
Primary Capital Ratio			17.28	%	17.39	%	17.21	%	17.80	%	17.34	%
Shareholders' Equity Ratio			16.94	%	17.06	%	16.88	%	17.46	%	17.00	%
Price / Book Ratio			1.16	x	1.19	x	1.17	x	1.14	x	1.13	x
Price / Earnings Ratio			14.66	x	17.20	x	14.41	x	15.02	x	22.59	x

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)

	Three Months Ended												Year to Date
	September			September			June			March			September		September
		2018			2017			2018			2018		2018			2017
Mortgage Banking Data – George Mason:
Applications	$	854,000		$	1,064,000		$	1,195,000		$	1,149,000		$3,198,000		$	2,431,000
Loans originated		641,141			858,625			874,493			573,732		2,089,366			1,644,943
Loans sold	$	692,270		$	887,711		$	784,727		$	616,951		$2,093,948		$	1,597,808
Purchase money % of loans closed		88	%		81	%		83	%		75	%	82	%		84	%
Realized gain on sales and fees as a % of loans sold		2.85	%		2.75	%		2.62	%		2.62	%	2.70	%		2.84	%
Net interest income	$	388		$	(36	)	$	264		$	376		$ 1,028		$	54
Other income		16,478			19,936			23,468			14,883		54,829			42,329
Other expense		17,957			24,036			21,225			18,384		57,566			42,744
Income taxes		(245	)		(1,332	)		564			(703	)	(384	)		(39	)
Net income	$	(846	)	$	(2,804	)	$	1,943		$	(2,422	)	$ (1,325	)	$	(322	)

	September		September		December		June		March
Period End Mortgage Banking Data – George Mason:		2018		2017		2017		2018		2018
Locked pipeline	$	170,545	$	245,986	$	157,130	$	221,317	$	206,883

	September		September		December		June		March
Asset Quality Data:		2018		2017		2017		2018		2018

EOP Non-Accrual Loans	$	66,554	$	100,016	$	108,803	$	74,114	$	100,172
EOP 90-Day Past Due Loans		15,949		22,249		9,803		16,422		9,165
EOP Restructured Loans ⁽¹⁾		63,626		46,132		50,129		60,384		48,271
Total EOP Non-performing Loans	$	146,129	$	168,397	$	168,735	$	150,920	$	157,608

EOP Other Real Estate Owned		18,786		26,826		24,348		21,926		22,778
Total EOP Non-performing Assets	$	164,915	$	195,223	$	193,083	$	172,846	$	180,386

	Three Months Ended												Year to Date
	September			September			June			March			September			September
Allowance for Loan Losses:		2018			2017			2018			2018			2018			2017
Beginning Balance	$	77,135		$	72,983		$	76,653		$	76,627		$	76,627		$	72,771
Provision for Loan Losses		4,808			7,279			6,204			5,178			16,190			21,429
		81,943			80,262			82,857			81,805			92,817			94,200
Gross Charge-offs		(7,044	)		(6,357	)		(7,712	)		(5,858	)		(20,614	)		(23,564	)
Recoveries		2,042			1,021			1,990			706			4,738			4,290
Net Charge-offs		(5,002	)		(5,336	)		(5,722	)		(5,152	)		(15,876	)		(19,274	)
Ending Balance	$	76,941		$	74,926		$	77,135		$	76,653		$	76,941		$	74,926
Reserve for lending-related commitments		1,144			804			927			755			1,144			804
Allowance for Credit Losses ⁽²⁾	$	78,085		$	75,730		$	78,062		$	77,408		$	78,085		$	75,730

Notes:

(1) Restructured loans with an aggregate balance of $50,974, $29,717, $46,652, $33,592 and $30,868 at September 30, 2018, September 30, 2017, June 30, 2018, March 31, 2018 and December 31, 2017, respectively, were on nonaccrual status, but are not included in “EOP Non-Accrual Loans” above.

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