UNITED BANKSHARES INC/WV [UBSI] Filings

Large accelerated filer

Accelerated filer

Non-accelerated
filer

Smaller reporting company

Emerging growth company

10-Q 1 d857233d10q.htm 10-Q 10-Q

FORM

10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to _________

Commission File Number:

002-86947

United Bankshares, Inc.

(Exact name of registrant as specified in its charter)



West Virginia		55-0641179
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)


300 United Center 500 Virginia Street , East Charleston, West Virginia		25301
(Address of principal executive offices)		Zip Code

Registrant’s telephone number, including area code: (304)

424-8716

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock , par value $2.50 per share	UBSI	NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes

☒

No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation

S-T

(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes

☒

No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a

non-accelerated

filer, smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule

12b-2

of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule

12b-2

of the Act). Yes ☐

☒

As of

October

31, 2024

, the registrant had

135,220,358

shares of common stock, $2.50 par value per share, outstanding.

UNITED BANKSHARES, INC. AND SUBSIDIARIES

FORM 10-Q

TABLE OF CONTENTS


	Page

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Consolidated Balance Sheets (Unaudited) September 30, 2024 and December 31, 2023		4

Consolidated Statements of Income (Unaudited) for the Three and Nine Months Ended September 30, 2024 and 2023		5

Consolidated Statements of Comprehensive Income (Unaudited) for the Three and Nine Months Ended September 30, 2024 and 2023		7

Consolidated Statement of Changes in Shareholders’ Equity (Unaudited) for the Three and Nine Months Ended September 30, 2024 and 2023		8

Condensed Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30, 2024 and 2023		10

Notes to Consolidated Financial Statements		11

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		56

Item 3. Quantitative and Qualitative Disclosures about Market Risk		76

Item 4. Controls and Procedures		79

PART II. OTHER INFORMATION

Item 1. Legal Proceedings		80

Item 1A. Risk Factors		80

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		80

Item 3. Defaults Upon Senior Securities		81

Item 4. Mine Safety Disclosures		81

Item 5. Other Information		81

Item 6. Exhibits		81

Signatures		83

PART I - FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS (UNAUDITED)

The September 30, 2024 and December 31, 2023, consolidated balance sheets of United Bankshares, Inc. and Subsidiaries (“United” or the “Company”), consolidated statements of income and comprehensive income for the three and nine months ended September 30, 2024 and 2023, the related consolidated statement of changes in shareholders’ equity for the three and nine months ended September 30, 2024 and 2023, the related condensed consolidated statements of cash flows for the nine months ended September 30, 2024 and 2023, and the notes to consolidated financial statements appear on the following pages.

Table of Contents

CONSOLIDATED BALANCE SHEETS

UNITED BANKSHARES, INC. AND SUBSIDIARIES


(Dollars in thousands, except par value)	September 30 2024			December 31 2023
	(Unaudited)			(Note 1)
Assets
Cash and due from banks	$	277,977		$	257,153
Interest-bearing deposits with other banks		1,629,602			1,340,620
Federal funds sold		1,253			1,170

Total cash and cash equivalents		1,908,832			1,598,943
Securities available for sale at estimated fair value (amortized cost-$3,509,648 at September 30, 2024 and $4,149,895 at December 31, 2023, allowance for credit losses of $0 at September 30, 2024 and December 31, 2023)		3,239,501			3,786,377
Securities held to maturity, net of allowance for credit losses of $19 at September 30, 2024 and $17 at December 31, 2023 (estimated fair value-$1,020 at September 30, 2024 and December 31, 2023)		1,001			1,003
Equity securities at estimated fair value		9,082			8,945
Other investment securities		288,831			329,429
Loans held for sale measured using fair value option		46,493			56,261
Loans and leases		21,631,053			21,373,185
Less: Unearned income		(9,085	)		(14,101	)

Loans and leases, net of unearned income		21,621,968			21,359,084
Less: Allowance for loan and lease losses		(270,767	)		(259,237	)

Net loans and leases		21,351,201			21,099,847
Bank premises and equipment		187,294			190,520
Operating lease right-of-use assets		82,114			86,986
Goodwill		1,888,889			1,888,889
Mortgage servicing rights		0			4,554
Bank-owned life insurance (“BOLI”)		495,784			486,895
Accrued interest receivable		107,031			111,420
Other assets		257,209			276,413

TOTAL ASSETS	$	29,863,262		$	29,926,482

Liabilities
Deposits:
Noninterest-bearing	$	6,038,098		$	6,149,080
Interest-bearing		17,790,247			16,670,239

Total deposits		23,828,345			22,819,319
Borrowings:
Securities sold under agreements to repurchase		181,969			196,095
Federal Home Loan Bank (“FHLB”) borrowings		260,271			1,510,487
Other long-term borrowings		279,820			278,616
Reserve for lending-related commitments		37,973			44,706
Operating lease liabilities		88,464			92,885
Accrued expenses and other liabilities		218,600			213,134

TOTAL LIABILITIES		24,895,442			25,155,242
Shareholders’ Equity
Preferred stock, $1.00 par value; Authorized-50,000,000 shares, none issued		0			0
Common stock, $2.50 par value; Authorized-200,000,000 shares; issued-142,567,165 and 142,257,646 at September 30, 2024 and December 31, 2023, respectively, including 7,346,395 and 7,308,583 shares in treasury at September 30, 2024 and December 31, 2023, respectively		356,418			355,644
Surplus		3,190,163			3,181,764
Retained earnings		1,873,577			1,745,619
Accumulated other comprehensive loss		(198,912	)		(259,681	)
Treasury stock, at cost		(253,426	)		(252,106	)

TOTAL SHAREHOLDERS’ EQUITY		4,967,820			4,771,240

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	29,863,262		$	29,926,482

See notes to consolidated unaudited financial statements.

Table of Contents

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

UNITED BANKSHARES, INC. AND SUBSIDIARIES


(Dollars in thousands, except per share data)	Three Months Ended September 30						Nine Months Ended September 30
	2024			2023			2024			2023
Interest income
Interest and fees on loans	$	331,531		$	308,199		$	978,775		$	882,453
Interest on federal funds sold and other short-term investments		19,241			11,810			44,331			35,499
Interest and dividends on securities:
Taxable		30,797			35,730			99,487			108,710
Tax-exempt		1,154			1,171			3,494			5,483

Total interest income		382,723			356,910			1,126,087			1,032,145
Interest expense
Interest on deposits		143,313			108,793			404,115			268,962
Interest on short-term borrowings		2,048			1,805			6,336			4,451
Interest on long-term borrowings		7,106			17,859			37,176			68,498

Total interest expense		152,467			128,457			447,627			341,911

Net interest income		230,256			228,453			678,460			690,234
Provision for credit losses		6,943			5,948			18,462			24,278

Net interest income after provision for credit losses		223,313			222,505			659,998			665,956
Other income
Fees from trust services		4,904			4,514			14,294			13,810
Fees from brokerage services		5,073			4,433			15,299			12,551
Fees from deposit services		9,413			9,282			27,710			27,969
Bankcard fees and merchant discounts		1,775			1,676			5,003			5,090
Other service charges, commissions, and fees		890			850			2,617			2,937
Income from bank-owned life insurance		3,032			2,562			7,999			6,475
Income from mortgage banking activities		4,544			7,556			13,743			21,847
Mortgage loan servicing income		7,385			846			8,957			12,963
Net investment securities losses		(6,715	)		(181	)		(7,032	)		(7,922	)
Other income		1,641			2,123			5,787			5,863

Total other income		31,942			33,661			94,377			101,583
Other expense
Employee compensation		58,481			59,064			176,275			172,980
Employee benefits		13,084			12,926			39,902			38,597
Net occupancy expense		11,271			11,494			35,014			34,736
Other real estate owned (“OREO”) expense		104			185			531			1,167
Net (gains) losses on the sales of OREO properties		(34	)		93			(85	)		66
Equipment expense		7,811			7,170			22,212			22,192
Data processing expense		7,456			7,405			22,209			22,134
Mortgage loan servicing expense and impairment		403			1,051			2,429			4,634
Bankcard processing expense		661			559			1,879			1,617
FDIC insurance expense		4,338			4,598			15,851			13,755
Other expense		31,764			30,685			94,638			96,059

Total other expense		135,339			135,230			410,855			407,937

Income before income taxes		119,916			120,936			343,520			359,602
Income taxes		24,649			24,779			64,932			72,679

Net income	$	95,267		$	96,157		$	278,588		$	286,923

Table of Contents

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - continued

UNITED BANKSHARES, INC. AND SUBSIDIARIES


(Dollars in thousands, except per share data)	Three Months Ended September 30				Nine Months Ended September 30
	2024		2023		2024		2023
Earnings per common share:
Basic	$	0.70	$	0.71	$	2.06	$	2.13

Diluted	$	0.70	$	0.71	$	2.06	$	2.12

Average outstanding shares:
Basic		135,158,476		134,685,041		134,912,625		134,493,059
Diluted		135,504,911		134,887,776		135,143,028		134,733,055

See notes to consolidated unaudited financial statements

Table of Contents

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

UNITED BANKSHARES, INC. AND SUBSIDIARIES


(Dollars in thousands)	Three Months Ended September 30						Nine Months Ended September 30
	2024			2023			2024			2023
Net income	$	95,267		$	96,157		$	278,588		$	286,923
Change in net unrealized gain (loss) on available-for-sale (“AFS”) securities, net of tax		71,280			(42,026	)		71,054			(17,464	)
Change in net unrealized (loss) gain on cash flow hedge, net of tax		(9,407	)		2,645			(11,577	)		(1,068	)
Change in pension plan assets, net of tax		444			603			1,292			1,808

Comprehensive income, net of tax	$	157,584		$	57,379		$	339,357		$	270,199

See notes to consolidated unaudited financial statements

Table of Contents

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

UNITED BANKSHARES, INC. AND SUBSIDIARIES


(Dollars in thousands, except per share data)	Nine Months Ended September 30, 2024
	Common Stock										Accumulated Other Comprehensive Income (Loss)
	Shares		Par Value		Surplus			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total Shareholders’ Equity
Balance at January 1, 2024		142,257,646	$	355,644	$	3,181,764		$	1,745,619		$	(259,681	)	$	(252,106	)	$	4,771,240
Comprehensive income:
Net income		0		0		0			86,814			0			0			86,814
Other comprehensive loss, net of tax		0		0		0			0			(1,311	)		0			(1,311	)

Total comprehensive income, net of tax																		85,503
Stock based compensation expense		0		0		3,266			0			0			0			3,266
Stock grant forfeiture (5,215 shares)		0		0		190			0			0			(190	)		0
Purchase of treasury stock (29,896 shares)		0		0		0			0			0			(1,030	)		(1,030	)
Cash dividends ($0.37 per share)		0		0		0			(50,213	)		0			0			(50,213	)
Net issuance of common stock under stock-based compensation plans (278,723 shares)		278,723		697		(2,022	)		0			0			0			(1,325	)

Balance at March 31, 2024		142,536,369		356,341		3,183,198			1,782,220			(260,992	)		(253,326	)		4,807,441
Comprehensive income:
Net income		0		0		0			96,507			0			0			96,507
Other comprehensive loss, net of tax		0		0		0			0			(237	)		0			(237	)

Total comprehensive income, net of tax																		96,270

UNITED BANKSHARES INC/WV [UBSI] Filings
10-Q	[2024-11-08]
10-Q	[2024-08-09]
10-Q	[2024-05-10]
10-K	[2024-02-29]
10-Q	[2023-11-09]
10-Q	[2023-08-09]
10-Q	[2023-05-10]
10-K	[2023-03-01]
10-Q	[2022-11-09]
10-Q	[2022-08-09]
10-Q	[2022-05-10]
10-K	[2022-03-01]
10-Q	[2021-11-09]
10-Q	[2021-08-09]
10-Q	[2021-05-10]
10-K	[2021-03-01]
10-Q	[2020-11-09]
10-Q	[2020-08-10]
10-Q	[2020-05-11]
10-K	[2020-03-02]
10-Q	[2019-11-08]
10-Q	[2019-08-09]
10-Q	[2019-05-09]
10-K	[2019-03-01]
10-Q	[2018-11-08]
10-Q	[2018-08-08]
10-Q	[2018-05-09]
10-K	[2018-03-01]
10-Q	[2017-11-09]
10-Q	[2017-08-09]
10-Q	[2017-05-09]
10-K	[2017-03-01]
10-Q	[2016-11-09]
10-Q	[2016-08-09]
10-Q	[2016-05-09]
10-K	[2016-02-29]
10-Q	[2015-11-06]
10-Q	[2015-08-05]
10-Q	[2015-05-08]
10-K	[2015-03-02]
10-Q	[2014-11-10]
10-Q	[2014-08-11]
10-Q	[2014-05-12]
10-K	[2014-03-03]
10-Q	[2013-11-08]
10-Q	[2013-08-09]
10-Q	[2013-05-09]
10-K	[2013-02-28]
10-Q	[2012-11-08]
10-Q	[2012-08-08]
10-Q	[2012-05-08]
10-K	[2012-02-29]