United reports year-to-date earnings growth

PARKERSBURG – United Bankshares Inc. reported earnings for the third quarter and the first nine months of 2013. Earnings for the third quarter of 2013 were $22.2 million or 44 cents per diluted share, an increase from earnings of $19.3 million or 38 cents per diluted share for the third quarter of 2012. Earnings for the first nine months of 2013 were $66 million or $1.31 per diluted share, up from earnings of $61.4 million or $1.22 per diluted share for the first nine months of 2012.

“Third quarter and year-to-date 2013 earnings continue to be strong,” stated Richard M. Adams, United’s chairman of the board and chief executive officer. “United also continues to be well capitalized based upon regulatory guidelines, and our asset quality outperforms our peers. United is one of only two major banking companies in the USA to have increased its dividend to shareholders for 39 consecutive years.”

Third quarter of 2013 results produced a return on average assets of 1.04 percent and a return on average equity of 8.64 percent, respectively. For the first nine months of 2013, United’s return on average assets was 1.05 percent while the return on average equity was 8.72 percent. United’s annualized returns on average assets and average equity were 0.92 percent and 7.76 percent, respectively, for the third quarter of 2012 while the returns on average assets and average equity was 0.97 percent and 8.32 percent, respectively, for the first nine months of 2012.

The results for the first nine months of 2013 included noncash, before-tax, other-than-temporary impairment charges of $971,000 on certain investment securities. No noncash, before-tax, other-than-temporary impairment charges were recognized during the third quarter of 2013. Included in the results for the third quarter and first nine months of 2012 were noncash, before-tax, other-than-temporary impairment charges of $2.3 million and $5.4 million, respectively, on certain investment securities. The results for the third quarter and first nine months of 2012 also included an accrual of $3.3 million with respect to a settlement of claims asserted in class actions against United Bank Inc. of West Virginia.

United’s asset quality continues to outperform its peers. United’s percentage of nonperforming loans to loans, net of unearned income of 1.26 percent at Sept. 30 compares favorably to the most recently reported percentage of 2.13 percent at June 30 for United’s Federal Reserve peer group. At Sept. 30 nonperforming loans were $83.1 million, down from nonperforming loans of $92.8 million or 1.43 percent of loans, net of unearned income, at Dec. 31, 2012. As of Sept. 30, the allowance for loan losses was $74.6 million or 1.13 percent of loans, net of unearned income, which was comparable to $73.9 million or 1.13 percent of loans, net of unearned income, at Dec. 31, 2012. Total nonperforming assets of $125.7 million, including OREO of $42.5 million at Sept. 30 represented 1.48 percent of total assets which also compares favorably to the most recently reported percentage of 1.73 percent at June 30 for United’s Federal Reserve peer group.

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 13.8 percent at Sept. 30 while its estimated Tier I capital and leverage ratios are 12.6 percent and 10.8 percent, respectively. The regulatory requirements for a well-capitalized financial institution are a risk-based capital ratio of 10 percent, a Tier I capital ratio of 6 percent and a leverage ratio of 5 percent.