Business Wire | Jan 28, 2021 07:50AM EST

United Bankshares, Inc. Announces Record Earnings for the Year 2020

Jan. 28, 2021

WASHINGTON & CHARLESTON, W.Va.--(BUSINESS WIRE)--Jan. 28, 2021--United Bankshares, Inc. (NASDAQ: UBSI) ("United"), today reported earnings for the fourth quarter and the year of 2020. Earnings for the fourth quarter of 2020 were $92.4 million, or $0.71 per diluted share, as compared to earnings of $63.3 million, or $0.62 per diluted share for the fourth quarter of 2019. Earnings for the year of 2020 were a record $289.0 million as compared to earnings of $260.1 million for the year of 2019. Earnings per diluted share for the year of 2020 were $2.40 as compared to earnings per diluted share of $2.55 for the year of 2019.

Fourth quarter 2020 results produced annualized returns on average assets, average equity and average tangible equity of 1.41%, 8.51% and 14.72%, respectively compared to annualized returns on average assets, average equity and average tangible equity of 1.29%, 7.42% and 13.38%, respectively, for the fourth quarter of 2019. For the year of 2020, United's returns on average assets, average equity and average tangible equity were 1.20%, 7.30% and 12.90%, respectively compared to returns on average assets, average equity and average tangible equity of 1.34%, 7.80% and 14.26%, respectively, for the year of 2019.

The record net income for the year of 2020, as compared to the year of 2019, was primarily due to higher income from mortgage banking activities, driven by an elevated volume of mortgage loan originations and sales in the secondary market, as well as the impact of the Carolina Financial Corporation ("Carolina Financial") acquisition. Partially offsetting these increases in net income was higher provision for credit losses resulting from an adverse future macroeconomic forecast as a result of the coronavirus ("COVID-19") pandemic under the Current Expected Credit Loss ("CECL") accounting standard and merger-related expenses related to the Carolina Financial acquisition.

"During the many challenges of 2020, United delivered a strong performance for our shareholders, our team members, our customers and our communities," stated Richard M. Adams, United's Chairman of the Board and Chief Executive Officer. "For 2020, we earned a record $289 million, increased our dividend for the 47th consecutive year, successfully completed the largest acquisition in our company's history with Carolina Financial, and maintained our focus on meeting the needs of our customers, our employees and our communities during the COVID-19 pandemic. We enter 2021 with strong credit quality and regulatory ratios that position us well for continued success."

The results of operations for Carolina Financial are included in the consolidated results of operations from the date of acquisition, May 1, 2020. As a result of the acquisition, the fourth quarter and year of 2020 reflected higher average balances, income, and expense as compared to the fourth quarter and year of 2020. In addition, the fourth quarter and year of 2020 included merger-related expenses of $558 thousand and $54.2 million, respectively, as compared to $589 thousand for both the fourth quarter and year of 2019.

Net Interest Income and Net Interest Margin

Net interest income for the fourth quarter of 2020 was $192.0 million, which was an increase of $50.7 million or 36% from the fourth quarter of 2019, primarily due to an increase in average earning assets from the Carolina Financial acquisition and Paycheck Protection Program ("PPP") loans. Tax-equivalent net interest income, a non-GAAP measure which adjusts for the tax-favored status of income from certain loans and investments, for the fourth quarter of 2020 increased $50.9 million or 36% from the fourth quarter of 2019 to $193.0 million. Average earning assets for the fourth quarter of 2020 increased $6.0 billion or 35% from the fourth quarter of 2019 due to a $4.4 billion increase in average net loans and loans held for sale, a $1.2 billion increase in average short-term investments and a $395.1 million increase in average investment securities. The net interest spread for the fourth quarter of 2020 increased 36 basis points from the fourth quarter of 2019 due to a 102 basis point decrease in the average cost of funds primarily due to the decline in market interest rates from the fourth quarter of 2019. The increase in the net interest spread was partially offset by a 66 basis point decrease in the average yield on earning assets from the fourth quarter of 2019 due to the decline in market interest rates and the lower yield on PPP loans. Loan accretion on acquired loans was $10.9 million and $8.6 million for the fourth quarter of 2020 and 2019, respectively, an increase of $2.3 million, primarily driven by the accretion on loans acquired from the Carolina Financial acquisition. The net interest margin of 3.33% for the fourth quarter of 2020 was an increase of 4 basis points from the net interest margin of 3.29% for the fourth quarter of 2019.

Net interest income for the year of 2020 was $689.8 million, which was an increase of $111.9 million or 19% from the year of 2019, primarily due to an increase in average earning assets from the Carolina Financial acquisition. Tax-equivalent net interest income for the year of 2020 was $693.7 million, an increase of $112.0 million or 19% from the year of 2019. Average earning assets for the year of 2020 increased $4.2 billion or 25% from the year of 2019 due to a $3.2 billion increase in average net loans and loans held for sale, a $767.9 million increase in average short-term investments and a $293.2 million increase in average investment securities. The net interest spread for the year of 2020 increased 8 basis points from the year of 2019 due to an 80 basis point decrease in the average cost of funds partially offset by a 72 basis point decrease in the average yield on earning assets. Loan accretion on acquired loans was $41.8 million and $38.8 million for the year of 2020 and 2019, respectively, an increase of $3.0 million. The net interest margin of 3.24% for the year of 2020 was a decrease of 15 basis points from the net interest margin of 3.39% for the year of 2019.

On a linked-quarter basis, net interest income for the fourth quarter of 2020 increased $6.3 million or 3% from the third quarter of 2020. United's tax-equivalent net interest income for the fourth quarter of 2020 also increased $6.3 million or 3% from the third quarter of 2020. The net interest spread for the fourth quarter of 2020 increased 21 basis points from the third quarter of 2020 due to an 18 basis point decrease in the average cost of funds and a 3 basis point increase in the average yield on earning assets. PPP loan fee income increased $2.2 million to $7.0 million in the fourth quarter of 2020 from the third quarter of 2020, driven by loan forgiveness. Average earning assets decreased approximately $302.1 million or 1% from the third quarter of 2020, driven by a decrease in average net loans and loans held for sale of $165.3 million and average short-term investments of $199.8 million from the third quarter of 2020. Loan accretion on acquired loans decreased approximately $815 thousand from the third quarter of 2020. The net interest margin of 3.33% for the fourth quarter of 2020 was an increase of 15 basis points from the net interest margin of 3.18% for the third quarter of 2020.

Credit Quality

United's asset quality continues to be sound relative to the current economic environment. At December 31, 2020, nonperforming loans were $132.2 million, or 0.75% of loans & leases, net of unearned income, as compared to nonperforming loans of $131.1 million, or 0.96% of loans & leases, net of unearned income, at December 31, 2019. As of December 31, 2020, the allowance for loan losses was $235.8 million or 1.34% of loans & leases, net of unearned income, as compared to $77.1 million or 0.56% of loans & leases, net of unearned income, at December 31, 2019. The increase in the allowance for loan losses was due to the adoption of CECL, the impact of COVID-19 and the loans acquired from Carolina Financial. Total nonperforming assets of $154.8 million, including OREO of $22.6 million at December 31, 2020, represented 0.59% of total assets as compared to nonperforming assets of $146.6 million or 0.75% of total assets at December 31, 2019.

For the quarters ended December 31, 2020 and 2019, the provision for credit losses was $16.8 million and $5.9 million, respectively. The increase in the provision in relation to the prior year quarter was driven by the impact from the reasonable and supportable forecasts of future macroeconomic conditions used in the estimation of expected credit losses adversely impacted by the COVID-19 pandemic under CECL. The provision for the year of 2020 was $106.6 million as compared to $21.3 million for the year of 2019. In addition to the impact of reasonable and supportable forecasts on reserves, the increase year over year was also driven by the provision for credit losses of $29.0 million recorded on purchased non-credit deteriorated ("non-PCD") loans from the Carolina Financial acquisition. Net charge-offs were $6.9 million and $5.9 million for the fourth quarter of 2020 and 2019, respectively. Net charge-offs were $23.6 million and $21.0 million for the year of 2020 and 2019, respectively. Annualized net charge-offs as a percentage of average loans & leases, net of unearned income were 0.16% and 0.14% for the fourth quarter and year of 2020, respectively. On a linked-quarter basis, the provision for credit losses remained flat at $16.8 million.

Noninterest Income

Noninterest income for the fourth quarter of 2020 was $94.1 million, which was an increase of $56.8 million or 153% from the fourth quarter of 2019. The increase was driven by a $53.2 million increase in income from mortgage banking activities due to an elevated volume of mortgage loan originations and sales in the secondary market as well as the addition of mortgage banking operations from the Carolina Financial acquisition. Noninterest income for the fourth quarter of 2020 also included $2.3 million in mortgage loan servicing income.

Noninterest income for the year of 2020 was $354.7 million, which was an increase of $204.3 million or 136% from the year of 2019. The increase was due mainly to an increase of $189.1 million in income from mortgage banking activities. Net gains on investment securities were $3.2 million for the year of 2020 as compared to a net gain of $175 thousand for the year of 2019, an increase of approximately $3.0 million. Noninterest income for the year of 2020 also included $6.2 million in mortgage loan servicing income and a $2.2 million gain on the sale of a bank premises.

On a linked-quarter basis, noninterest income for the fourth quarter of 2020 decreased $41.4 million or 31% from the third quarter of 2020 primarily due to a decrease of $38.7 million in income from mortgage banking activities. Mortgage loan originations and sales volumes remained strong in the fourth quarter of 2020. The decrease in the fourth quarter of 2020 in relation to the third quarter of 2020 was primarily due to lower balances and volume of loans held for sale and loan commitments. The third quarter of 2020 also included a $2.2 million gain on the sale of a bank premises.

Noninterest Expense

Noninterest expense for the fourth quarter of 2020 was $156.1 million, an increase of $59.2 million or 61% from the fourth quarter of 2019. Employee compensation increased $32.6 million from the fourth quarter of 2019 due to the Carolina Financial acquisition as well as due to higher employee incentives and commissions expense mainly related to higher mortgage banking production. Additionally, noninterest expense increased from the fourth quarter of 2019 due to a $10.8 million increase in other expense, a $3.4 million increase in mortgage loan servicing expense and impairment, a $3.0 million increase in employee benefits, a $2.9 million increase in equipment expense and a $2.2 million increase in net occupancy expense. Within other expense, the largest drivers of the increase included an increase in the expense for the reserve for unfunded commitments of $3.3 million and an increase in the amortization of income tax credits of $1.9 million. The increases in employee benefits, equipment expense and occupancy expense were mainly from the Carolina Financial acquisition.

Noninterest expense for the year of 2020 was $578.2 million, an increase of $195.6 million or 51% from the year of 2019. Employee compensation increased $100.7 million from the year of 2019 due to the Carolina Financial acquisition as well as due to higher employee incentives and commissions expense mainly related to higher mortgage banking production. Additional employee benefit expense of $13.1 million and occupancy expense of $6.5 million were recognized in the year of 2020 mainly from the Carolina Financial acquisition. Data processing expense increased $13.2 million (including the Carolina Financial data processing contract termination penalty of $9.7 million recorded in the second quarter of 2020), mortgage loan servicing expense and impairment increased $9.0 million (including $1.4 million temporary impairment on mortgage servicing rights) and prepayment penalties on the early payoff of long-term FHLB advances increased $5.3 million. Other expense also increased $39.1 million due to an increase in merger-related expenses of $10.7 million associated with the Carolina Financial acquisition, an increase in the expense for the reserve for unfunded commitments of $11.0 million, and an increase in the amortization of income tax credits of $5.7 million which reduces the effective tax rate.

On a linked-quarter basis, noninterest expense for the fourth quarter of 2020 decreased $15.5 million or 9% from the third quarter of 2020 due primarily to the $10.4 million in prepayment penalties on the early payoff of three long-term FHLB advances recognized in the third quarter of 2020. Additionally, employee compensation decreased $7.5 million due a decline in salaries expense as a result of fewer employees and lower employee incentives and commissions expense recognized in the fourth quarter of 2020 related primarily to mortgage banking production.

Income Tax Expense

For the fourth quarter and year of 2020, income tax expense was $20.8 million and $70.7 million as compared to $12.5 million and $64.3 million, respectively, for the fourth quarter and year of 2019. The increase in the comparative quarter and year periods was due to overall higher earnings. On a linked-quarter basis, income tax expense decreased $8.1 million due to lower earnings and a lower effective tax rate primarily as a result of an increased benefit from income tax credits. United's effective tax rate was 18.4% for the fourth quarter of 2020, 16.5% for the fourth quarter of 2019 and 21.8% for the third quarter of 2020. For the year of 2020 and 2019, United's effective tax rate was 19.7% and 19.8%, respectively.

Regulatory Capital

United continues to be well-capitalized based upon regulatory guidelines. United's estimated risk-based capital ratio is 15.6% at December 31, 2020 while its estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 13.3%, 13.3% and 10.3%, respectively. The December 31, 2020 ratios reflect United's election of a five-year transition provision, allowed by the Federal Reserve Board and other federal banking agencies in response to the COVID-19 pandemic, to delay for two years the full impact of CECL on regulatory capital, followed by a three-year transition period. 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%.

About United Bankshares, Inc.

As of December 31, 2020, United had consolidated assets of approximately $26.2 billion. United is the parent company of United Bank, the largest community bank headquartered in the D.C. Metro region. United Bank has 230 offices in West Virginia, Virginia, Ohio, Pennsylvania, Maryland, North Carolina, South Carolina, Georgia, and the nation's capital. United's 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 December 31, 2020 consolidated financial statements on Form 10-K. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of December 31, 2020 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, return on 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%.

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 and considering net income, a return on average tangible equity. 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 measures, along with others, are used by management to analyze capital adequacy and performance.

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

In this report, we have made various statements regarding current expectations or forecasts of future events, which speak only as of the date the statements are made. These statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are also made from time-to-time in press releases and in oral statements made by the officers of the Company. Forward-looking statements can be identified by the use of the words "expect," "may," "could," "intend," "project," "estimate," "believe," "anticipate," and other words of similar meaning. Such forward-looking statements are based on assumptions and estimates, which although believed to be reasonable, may turn out to be incorrect, such as statements about the potential impacts of the COVID-19 pandemic. Therefore, undue reliance should not be placed upon these estimates and statements. United cannot assure that any of these statements, estimates, or beliefs will be realized and actual results may differ from those contemplated in these "forward-looking statements." The following factors, among others, could cause the actual results of United's operations to differ materially from its expectations: the effect of the COVID-19 pandemic, including the negative impacts and disruptions on United's colleagues, the communities United serves, and the domestic and global economy, which may have an adverse effect on United's business; current and future economic and market conditions, including the effects of declines in housing prices, high unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth; fiscal and monetary policies of the Federal Reserve Board; the effect of changes in the level of checking or savings account deposits on United's funding costs and net interest margin; future provisions for credit losses on loans and debt securities; changes in nonperforming assets; the successful integration of operations of Carolina Financial Corporation; competition; and changes in legislation or regulatory requirements. For more information about factors that could cause actual results to differ materially from United's expectations, refer to its reports filed with the Securities and Exchange Commission, including the discussion under "Risk Factors" in the Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov. Further, any forward-looking statement speaks only as of the date on which it is made, and United undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. You are advised to consult further disclosures United may make on related subjects in our filings with the SEC.



UNITED BANKSHARES, INC. AND SUBSIDIARIES

FINANCIAL SUMMARY

(In Thousands Except for Per Share Data)



Three Months Ended Year Ended

December December December December 2020 2019 2020 2019

EARNINGS SUMMARY:

Interest income $ 208,914 $ 183,869 $ 798,382 $ 762,562

Interest 16,925 42,586 108,609 184,640 expense

Net interest 191,989 141,283 689,773 577,922 income

Provision for 16,751 5,867 106,562 21,313 credit losses

Noninterest 94,082 37,242 354,746 150,484 income

Noninterest 156,117 96,900 578,217 382,654 expense

Income before 113,203 75,758 359,740 324,439 income taxes

Income taxes 20,833 12,473 70,717 64,340

Net income $ 92,370 $ 63,285 $ 289,023 $ 260,099



PER COMMON SHARE:

Net income:

Basic $ 0.71 $ 0.62 $ 2.40 $ 2.55

Diluted 0.71 0.62 2.40 2.55

Cash dividends $ 0.35 $ 0.35 1.40 1.37

Book value 33.27 33.12

Closing market $ 32.40 $ 38.66 price

Common shares outstanding:

Actual atperiod end, net 129,188,507 101,553,671 of treasuryshares

Weighted 129,371,600 101,250,489 120,017,247 101,585,599 average-basic

Weighted 129,479,390 101,537,640 120,090,232 101,852,577 average-diluted



FINANCIAL RATIOS:

Return on 1.41 % 1.29 % 1.20 % 1.34 %average assets

Return onaverage 8.51 % 7.42 % 7.30 % 7.80 %shareholders'equity

Return onaverage 14.72 % 13.38 % 12.90 % 14.26 %tangible equity(non-GAAP) ^(1)

Average equityto average 16.54 % 17.39 % 16.39 % 17.13 %assets

Net interest 3.33 % 3.29 % 3.24 % 3.39 %margin



December 31 December 31 December 31 September 30 2020 2019 2018 2020

PERIOD END BALANCES:

Assets $ 26,184,247 $ 19,662,324 $ 19,250,498 $ 25,931,308

Earning assets 23,172,403 17,344,638 16,971,602 22,903,067

Loans & leases,net of unearned 17,591,413 13,712,129 13,422,222 17,930,231 income

Loans held for 718,937 387,514 249,846 812,084 sale

Investment 3,186,184 2,669,797 2,543,727 3,007,263 securities

Total deposits 20,585,160 13,852,421 13,994,749 20,251,539

Shareholders' 4,297,620 3,363,833 3,251,624 4,267,441 equity

Note: (1) See information under the "Selected Financial Ratios" table for areconciliation of non-GAAP measure.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

December

December

September

June

March

2020

2019

2020

2020

2020

Interest & Loan Fees Income (GAAP)

$

208,914

$

183,869

$

210,269

$

198,717

$

180,482

Tax equivalent adjustment

1,042

851

1,046

1,018

782

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

209,956

184,720

211,315

199,735

181,264

Interest Expense

16,925

42,586

24,605

28,115

38,964

Net Interest Income (FTE) (non-GAAP)

193,031

142,134

186,710

171,620

142,300

Provision for Credit Losses

16,751

5,867

16,781

45,911

27,119

Noninterest Income:

Fees from trust services

3,585

3,597

3,574

3,261

3,483

Fees from brokerage services

3,125

2,468

3,066

2,651

2,916

Fees from deposit services

9,501

8,549

9,320

8,055

7,957

Bankcard fees and merchant discounts

1,129

1,154

1,226

718

993

Other charges, commissions, and fees

753

576

715

610

518

Income from bank-owned life insurance

1,479

2,906

2,059

1,291

2,388

Income from mortgage banking activities

70,793

17,547

109,457

68,213

17,631

Mortgage loan servicing income

2,334

0

2,345

1,534

0

Net gain on the sale of bank premises

0

0

2,229

0

0

Net gains on investment securities

589

109

860

1,510

196

Other noninterest income

794

336

617

547

724

Total Noninterest Income

94,082

37,242

135,468

88,390

36,806

Noninterest Expense:

Employee compensation

77,001

44,399

84,455

68,664

44,541

Employee benefits

12,103

9,121

13,202

12,779

10,786

Net occupancy

10,979

8,734

10,944

10,318

9,062

Data processing

7,280

5,727

6,708

15,926

5,506

Amortization of intangibles

1,691

1,754

1,691

1,646

1,577

OREO expense

3,069

1,450

1,166

607

906

Equipment expense

6,396

3,522

5,616

5,004

3,845

FDIC insurance expense

2,250

1,005

2,700

2,782

2,400

Mortgage loan servicing expense and impairment

3,482

119

3,301

2,510

138

Prepayment penalties on FHLB borrowings

0

0

10,385

0

0

Other expenses

31,866

21,069

31,425

29,138

22,372

Total Noninterest Expense

156,117

96,900

171,593

149,374

101,133

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

114,245

76,609

133,804

64,725

50,854

Tax equivalent adjustment

1,042

851

1,046

1,018

782

Income Before Income Taxes (GAAP)

113,203

75,758

132,758

63,707

50,072

Taxes

20,833

12,473

28,974

11,021

9,889

Net Income

$

92,370

$

63,285

$

103,784

$

52,686

$

40,183

MEMO: Effective Tax Rate

18.40

%

16.46

%

21.82

%

17.30

%

19.75

%

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)



ConsolidatedStatements of Income

Three Months Ended

December December September June March

2020 2019 2020 2020 2020

Interest &Loan Fees $ 208,914 $ 183,869 $ 210,269 $ 198,717 $ 180,482 Income(GAAP)

Taxequivalent 1,042 851 1,046 1,018 782 adjustment

Interest &Fees Income 209,956 184,720 211,315 199,735 181,264 (FTE)(non-GAAP)

Interest 16,925 42,586 24,605 28,115 38,964 Expense

Net InterestIncome (FTE) 193,031 142,134 186,710 171,620 142,300 (non-GAAP)



Provisionfor Credit 16,751 5,867 16,781 45,911 27,119 Losses



Noninterest Income:

Fees fromtrust 3,585 3,597 3,574 3,261 3,483 services

Fees frombrokerage 3,125 2,468 3,066 2,651 2,916 services

Fees fromdeposit 9,501 8,549 9,320 8,055 7,957 services

Bankcardfees and 1,129 1,154 1,226 718 993 merchantdiscounts

Othercharges, 753 576 715 610 518 commissions,and fees

Income frombank-owned 1,479 2,906 2,059 1,291 2,388 lifeinsurance

Income frommortgage 70,793 17,547 109,457 68,213 17,631 bankingactivities

Mortgageloan 2,334 0 2,345 1,534 0 servicingincome

Net gain onthe sale of 0 0 2,229 0 0 bankpremises

Net gains oninvestment 589 109 860 1,510 196 securities

Othernoninterest 794 336 617 547 724 income

TotalNoninterest 94,082 37,242 135,468 88,390 36,806 Income



Noninterest Expense:

Employee 77,001 44,399 84,455 68,664 44,541 compensation

Employee 12,103 9,121 13,202 12,779 10,786 benefits

Net 10,979 8,734 10,944 10,318 9,062 occupancy

Data 7,280 5,727 6,708 15,926 5,506 processing

Amortizationof 1,691 1,754 1,691 1,646 1,577 intangibles

OREO expense 3,069 1,450 1,166 607 906

Equipment 6,396 3,522 5,616 5,004 3,845 expense

FDICinsurance 2,250 1,005 2,700 2,782 2,400 expense

Mortgageloanservicing 3,482 119 3,301 2,510 138 expense andimpairment

Prepaymentpenalties on 0 0 10,385 0 0 FHLBborrowings

Other 31,866 21,069 31,425 29,138 22,372 expenses

TotalNoninterest 156,117 96,900 171,593 149,374 101,133 Expense



IncomeBeforeIncome Taxes 114,245 76,609 133,804 64,725 50,854 (FTE)(non-GAAP)



Taxequivalent 1,042 851 1,046 1,018 782 adjustment



IncomeBefore 113,203 75,758 132,758 63,707 50,072 Income Taxes(GAAP)



Taxes 20,833 12,473 28,974 11,021 9,889



Net Income $ 92,370 $ 63,285 $ 103,784 $ 52,686 $ 40,183



MEMO:Effective 18.40 % 16.46 % 21.82 % 17.30 % 19.75 %Tax Rate



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

Year Ended

December

December

December

December

2020

2019

2018

2017

Interest & Loan Fees Income (GAAP)

$

798,382

$

762,562

$

717,715

$

623,806

Tax equivalent adjustment

3,888

3,735

4,328

8,429

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

802,270

766,297

722,043

632,235

Interest Expense

108,609

184,640

129,070

74,809

Net Interest Income (FTE) (non-GAAP)

693,661

581,657

592,973

557,426

Provision for Credit Losses

106,562

21,313

22,013

28,406

Noninterest Income:

Fees from trust services

13,903

13,873

12,930

11,801

Fees from brokerage services

11,758

10,136

9,347

7,730

Fees from deposit services

34,833

33,768

33,973

33,622

Bankcard fees and merchant discounts

4,066

4,674

5,168

4,795

Other charges, commissions, and fees

2,596

2,241

2,228

2,057

Income from bank-owned life insurance

7,217

7,339

5,045

5,110

Income from mortgage banking activities

266,094

76,951

58,109

58,907

Mortgage loan servicing income

6,213

0

0

0

Net gain on the sale of bank premises

2,229

0

2,763

0

Net gains (losses) on investment securities

3,155

175

(2,618

)

5,584

Other noninterest income

2,682

1,327

1,767

2,039

Total Noninterest Income

354,746

150,484

128,712

131,645

Noninterest Expense:

Employee compensation

274,661

173,962

164,468

166,393

Employee benefits

48,870

35,745

36,172

34,997

Net occupancy

41,303

34,850

36,462

39,067

Data processing

35,420

22,232

23,800

21,019

Amortization of intangibles

6,605

7,016

8,039

7,772

OREO expense

5,748

5,336

3,444

6,003

Equipment expense

20,861

14,210

13,846

10,528

FDIC insurance expense

10,132

8,070

11,464

7,051

Mortgage loan servicing expense and impairment

9,431

423

271

263

Prepayment penalties on FHLB borrowings

10,385

5,105

0

0

Other expenses

114,801

75,705

70,213

74,316

Total Noninterest Expense

578,217

382,654

368,179

367,409

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

363,628

328,174

331,493

293,256

Tax equivalent adjustment

3,888

3,735

4,328

8,429

Income Before Income Taxes (GAAP)

359,740

324,439

327,165

284,827

Taxes

70,717

64,340

70,823

134,246

Net Income

$

289,023

$

260,099

$

256,342

$

150,581

MEMO: Effective Tax Rate

19.66

%

19.83

%

21.65

%

47.13

%

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

Year Ended

December December December December

2020 2019 2018 2017

Interest & Loan Fees $ 798,382 $ 762,562 $ 717,715 $ 623,806 Income (GAAP)

Tax equivalent adjustment 3,888 3,735 4,328 8,429

Interest & Fees Income 802,270 766,297 722,043 632,235 (FTE) (non-GAAP)

Interest Expense 108,609 184,640 129,070 74,809

Net Interest Income (FTE) 693,661 581,657 592,973 557,426 (non-GAAP)



Provision for Credit 106,562 21,313 22,013 28,406 Losses



Noninterest Income:

Fees from trust services 13,903 13,873 12,930 11,801

Fees from brokerage 11,758 10,136 9,347 7,730 services

Fees from deposit services 34,833 33,768 33,973 33,622

Bankcard fees and merchant 4,066 4,674 5,168 4,795 discounts

Other charges, 2,596 2,241 2,228 2,057 commissions, and fees

Income from bank-owned 7,217 7,339 5,045 5,110 life insurance

Income from mortgage 266,094 76,951 58,109 58,907 banking activities

Mortgage loan servicing 6,213 0 0 0 income

Net gain on the sale of 2,229 0 2,763 0 bank premises

Net gains (losses) on 3,155 175 (2,618 ) 5,584 investment securities

Other noninterest income 2,682 1,327 1,767 2,039

Total Noninterest Income 354,746 150,484 128,712 131,645



Noninterest Expense:

Employee compensation 274,661 173,962 164,468 166,393

Employee benefits 48,870 35,745 36,172 34,997

Net occupancy 41,303 34,850 36,462 39,067

Data processing 35,420 22,232 23,800 21,019

Amortization of 6,605 7,016 8,039 7,772 intangibles

OREO expense 5,748 5,336 3,444 6,003

Equipment expense 20,861 14,210 13,846 10,528

FDIC insurance expense 10,132 8,070 11,464 7,051

Mortgage loan servicing 9,431 423 271 263 expense and impairment

Prepayment penalties on 10,385 5,105 0 0 FHLB borrowings

Other expenses 114,801 75,705 70,213 74,316

Total Noninterest Expense 578,217 382,654 368,179 367,409



Income Before Income Taxes 363,628 328,174 331,493 293,256 (FTE) (non-GAAP)



Tax equivalent adjustment 3,888 3,735 4,328 8,429



Income Before Income Taxes 359,740 324,439 327,165 284,827 (GAAP)



Taxes 70,717 64,340 70,823 134,246



Net Income $ 289,023 $ 260,099 $ 256,342 $ 150,581



MEMO: Effective Tax Rate 19.66 % 19.83 % 21.65 % 47.13 %

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

Consolidated Balance Sheets

December 2020

December 2019

December 31

December 31

December 31

Q-T-D Average

Q-T-D Average

2020

2019

2018

Cash & Cash Equivalents

$

2,048,915

$

777,007

$

2,209,068

$

837,493

$

1,020,396

Securities Available for Sale

2,849,102

2,463,101

2,953,359

2,437,296

2,337,039

Less: Allowance for credit losses

0

0

0

0

0

Net available for sale securities

2,849,102

2,463,101

2,953,359

2,437,296

2,337,039

Securities Held to Maturity

1,235

1,463

1,235

1,446

19,999

Less: Allowance for credit losses

(21

)

0

(23

)

0

0

Net held to maturity securities

1,214

1,463

1,212

1,446

19,999

Equity Securities

10,399

8,984

10,718

8,894

9,734

Other Investment Securities

218,741

210,855

220,895

222,161

176,955

Total Securities

3,079,456

2,684,403

3,186,184

2,669,797

2,543,727

Total Cash and Securities

5,128,371

3,461,410

5,395,252

3,507,290

3,564,123

Loans held for sale

720,896

368,966

718,937

387,514

249,846

Commercial Loans & Leases

13,296,380

9,347,641

13,165,497

9,399,170

9,447,420

Mortgage Loans

3,269,073

3,052,045

3,197,274

3,107,721

2,979,787

Consumer Loans

1,253,421

1,195,999

1,259,812

1,206,657

1,002,325

Gross Loans

17,818,874

13,595,685

17,622,583

13,713,548

13,429,532

Unearned income

(38,502

)

(2,823

)

(31,170

)

(1,419

)

(7,310

)

Loans & Leases, net of unearned income

17,780,372

13,592,862

17,591,413

13,712,129

13,422,222

Allowance for Loan & Leases Losses

(225,918

)

(77,073

)

(235,830

)

(77,057

)

(76,703

)

Net Loans

17,554,454

13,515,789

17,355,583

13,635,072

13,345,519

Mortgage Servicing Rights

20,766

0

20,955

0

0

Goodwill

1,794,997

1,478,014

1,796,848

1,478,014

1,478,014

Other Intangibles

27,580

30,837

26,923

29,931

36,947

Operating Lease Right-of-Use Asset

72,090

59,031

69,520

57,783

0

Other Real Estate Owned

26,316

18,472

22,595

15,515

16,865

Other Assets

771,233

532,561

777,634

551,205

559,184

Total Assets

$

26,116,703

$

19,465,080

$

26,184,247

$

19,662,324

$

19,250,498

MEMO: Interest-earning Assets

$

23,122,784

$

17,165,071

$

23,172,403

$

17,344,638

$

16,971,602

Interest-bearing Deposits

$

13,018,640

$

9,281,403

$

13,179,900

$

9,231,059

$

9,577,934

Noninterest-bearing Deposits

7,495,594

4,647,907

7,405,260

4,621,362

4,416,815

Total Deposits

20,514,234

13,929,310

20,585,160

13,852,421

13,994,749

Short-term Borrowings

144,177

132,621

142,300

374,654

351,327

Long-term Borrowings

901,655

1,836,423

864,369

1,838,029

1,499,103

Total Borrowings

1,045,832

1,969,044

1,006,669

2,212,683

1,850,430

Operating Lease Liability

75,805

62,662

73,213

61,342

0

Other Liabilities

161,580

118,702

221,585

172,045

153,695

Total Liabilities

21,797,451

16,079,718

21,886,627

16,298,491

15,998,874

Preferred Equity

0

0

0

0

0

Common Equity

4,319,252

3,385,362

4,297,620

3,363,833

3,251,624

Total Shareholders' Equity

4,319,252

3,385,362

4,297,620

3,363,833

3,251,624

Total Liabilities & Equity

$

26,116,703

$

19,465,080

$

26,184,247

$

19,662,324

$

19,250,498

MEMO: Interest-bearing Liabilities

$

14,064,472

$

11,250,447

$

14,186,569

$

11,443,742

$

11,428,364

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)



Consolidated Balance Sheets



December 2020 December 2019 December 31 December 31 December 31

Q-T-D Average Q-T-D Average 2020 2019 2018



Cash & Cash $ 2,048,915 $ 777,007 $ 2,209,068 $ 837,493 $ 1,020,396 Equivalents

Securities 2,849,102 2,463,101 2,953,359 2,437,296 2,337,039 Available for Sale

Less: Allowance for 0 0 0 0 0 credit losses

Net available for 2,849,102 2,463,101 2,953,359 2,437,296 2,337,039 sale securities

Securities Held to 1,235 1,463 1,235 1,446 19,999 Maturity

Less: Allowance for (21 ) 0 (23 ) 0 0 credit losses

Net held to 1,214 1,463 1,212 1,446 19,999 maturity securities

Equity Securities 10,399 8,984 10,718 8,894 9,734

Other Investment 218,741 210,855 220,895 222,161 176,955 Securities

Total Securities 3,079,456 2,684,403 3,186,184 2,669,797 2,543,727

Total Cash and 5,128,371 3,461,410 5,395,252 3,507,290 3,564,123 Securities



Loans held for sale 720,896 368,966 718,937 387,514 249,846



Commercial Loans & 13,296,380 9,347,641 13,165,497 9,399,170 9,447,420 Leases

Mortgage Loans 3,269,073 3,052,045 3,197,274 3,107,721 2,979,787

Consumer Loans 1,253,421 1,195,999 1,259,812 1,206,657 1,002,325



Gross Loans 17,818,874 13,595,685 17,622,583 13,713,548 13,429,532

Unearned income (38,502 ) (2,823 ) (31,170 ) (1,419 ) (7,310 )

Loans & Leases, net 17,780,372 13,592,862 17,591,413 13,712,129 13,422,222 of unearned income

Allowance for Loan (225,918 ) (77,073 ) (235,830 ) (77,057 ) (76,703 )& Leases Losses

Net Loans 17,554,454 13,515,789 17,355,583 13,635,072 13,345,519



Mortgage Servicing 20,766 0 20,955 0 0 Rights

Goodwill 1,794,997 1,478,014 1,796,848 1,478,014 1,478,014

Other Intangibles 27,580 30,837 26,923 29,931 36,947

Operating Lease 72,090 59,031 69,520 57,783 0 Right-of-Use Asset

Other Real Estate 26,316 18,472 22,595 15,515 16,865 Owned

Other Assets 771,233 532,561 777,634 551,205 559,184

Total Assets $ 26,116,703 $ 19,465,080 $ 26,184,247 $ 19,662,324 $ 19,250,498



MEMO:Interest-earning $ 23,122,784 $ 17,165,071 $ 23,172,403 $ 17,344,638 $ 16,971,602 Assets



Interest-bearing $ 13,018,640 $ 9,281,403 $ 13,179,900 $ 9,231,059 $ 9,577,934 Deposits

Noninterest-bearing 7,495,594 4,647,907 7,405,260 4,621,362 4,416,815 Deposits

Total Deposits 20,514,234 13,929,310 20,585,160 13,852,421 13,994,749



Short-term 144,177 132,621 142,300 374,654 351,327 Borrowings

Long-term 901,655 1,836,423 864,369 1,838,029 1,499,103 Borrowings

Total Borrowings 1,045,832 1,969,044 1,006,669 2,212,683 1,850,430



Operating Lease 75,805 62,662 73,213 61,342 0 Liability

Other Liabilities 161,580 118,702 221,585 172,045 153,695

Total Liabilities 21,797,451 16,079,718 21,886,627 16,298,491 15,998,874



Preferred Equity 0 0 0 0 0

Common Equity 4,319,252 3,385,362 4,297,620 3,363,833 3,251,624

Total Shareholders' 4,319,252 3,385,362 4,297,620 3,363,833 3,251,624 Equity



Total Liabilities & $ 26,116,703 $ 19,465,080 $ 26,184,247 $ 19,662,324 $ 19,250,498 Equity



MEMO:Interest-bearing $ 14,064,472 $ 11,250,447 $ 14,186,569 $ 11,443,742 $ 11,428,364 Liabilities

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

Three Months Ended

December

December

September

June

March

Quarterly Share Data:

2020

2019

2020

2020

2020

Earnings Per Share:

Basic

$

0.71

$

0.62

$

0.80

$

0.44

$

0.40

Diluted

$

0.71

$

0.62

$

0.80

$

0.44

$

0.40

Common Dividend Declared Per Share

$

0.35

$

0.35

$

0.35

$

0.35

$

0.35

High Common Stock Price

$

32.86

$

40.70

$

30.07

$

33.12

$

39.07

Low Common Stock Price

$

21.19

$

36.09

$

20.57

$

21.52

$

19.67

Average Shares Outstanding (Net of Treasury Stock):

Basic

129,371,600

101,250,489

129,373,154

119,823,652

101,295,073

Diluted

129,479,390

101,537,640

129,454,966

119,887,823

101,399,181

Common Dividends

$

45,442

$

35,543

$

45,414

$

45,416

$

35,604

Dividend Payout Ratio

49.20

%

56.16

%

43.76

%

86.20

%

88.60

%

Year Ended

December

December

December

December

YTD Share Data:

2020

2019

2018

2017

Earnings Per Share:

Basic

$

2.40

$

2.55

$

2.46

$

1.54

Diluted

$

2.40

$

2.55

$

2.45

$

1.54

Common Dividend Declared Per Share

$

1.40

$

1.37

$

1.36

$

1.33

Average Shares Outstanding (Net of Treasury Stock):

Basic

120,017,247

101,585,599

104,015,976

97,502,633

Diluted

120,090,232

101,852,577

104,298,825

97,890,078

Common Dividends

$

171,876

$

139,508

$

141,610

$

131,755

Dividend Payout Ratio

59.47

%

53.64

%

55.24

%

87.50

%

December 31

December 31

September 30

June 30

March 31

EOP Share Data:

2020

2019

2020

2020

2020

Book Value Per Share

$

33.27

$

33.12

$

32.89

$

32.35

$

32.87

Tangible Book Value Per Share (non-GAAP) (1)

$

19.15

$

18.27

$

18.84

$

18.28

$

18.06

52-week High Common Stock Price

$

39.07

$

40.70

$

40.70

$

40.70

$

40.70

Date

01/02/20

11/05/19

11/05/19

11/05/19

11/05/19

52-week Low Common Stock Price

$

19.67

$

30.67

$

19.67

$

19.67

$

19.67

Date

03/23/20

01/02/19

03/23/20

03/23/20

03/23/20

EOP Shares Outstanding (Net of Treasury Stock):

129,188,507

101,553,671

129,762,348

129,755,395

101,723,600

Memorandum Items:

EOP Employees (full-time equivalent)

3,051

2,204

3,137

3,039

2,206

Note:

(1) Tangible Book Value Per Share:

Total Shareholders' Equity (GAAP)

$

4,297,620

$

3,363,833

$

4,267,441

$

4,197,855

$

3,343,702

Less: Total Intangibles

(1,823,771

)

(1,507,945

)

(1,823,129

)

(1,825,887

)

(1,506,368

)

Tangible Equity (non-GAAP)

$

2,473,849

$

1,855,888

$

2,444,312

$

2,371,968

$

1,837,334

/ EOP Shares Outstanding (Net of Treasury Stock)

129,188,507

101,553,671

129,762,348

129,755,395

101,723,600

Tangible Book Value Per Share (non-GAAP)

$

19.15

$

18.27

$

18.84

$

18.28

$

18.06

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)



Three Months Ended

December December September June March

Quarterly 2020 2019 2020 2020 2020Share Data:



Earnings Per Share:

Basic $ 0.71 $ 0.62 $ 0.80 $ 0.44 $ 0.40

Diluted $ 0.71 $ 0.62 $ 0.80 $ 0.44 $ 0.40

CommonDividend $ 0.35 $ 0.35 $ 0.35 $ 0.35 $ 0.35 Declared PerShare

High Common $ 32.86 $ 40.70 $ 30.07 $ 33.12 $ 39.07 Stock Price

Low Common $ 21.19 $ 36.09 $ 20.57 $ 21.52 $ 19.67 Stock Price



AverageSharesOutstanding (Net ofTreasuryStock):

Basic 129,371,600 101,250,489 129,373,154 119,823,652 101,295,073

Diluted 129,479,390 101,537,640 129,454,966 119,887,823 101,399,181



Common $ 45,442 $ 35,543 $ 45,414 $ 45,416 $ 35,604 Dividends

Dividend 49.20 % 56.16 % 43.76 % 86.20 % 88.60 %Payout Ratio



Year Ended

December December December December

YTD Share 2020 2019 2018 2017Data:



Earnings Per Share:

Basic $ 2.40 $ 2.55 $ 2.46 $ 1.54

Diluted $ 2.40 $ 2.55 $ 2.45 $ 1.54

CommonDividend $ 1.40 $ 1.37 $ 1.36 $ 1.33 Declared PerShare



AverageSharesOutstanding (Net ofTreasuryStock):

Basic 120,017,247 101,585,599 104,015,976 97,502,633

Diluted 120,090,232 101,852,577 104,298,825 97,890,078



Common $ 171,876 $ 139,508 $ 141,610 $ 131,755 Dividends

Dividend 59.47 % 53.64 % 55.24 % 87.50 %Payout Ratio





December 31 December 31 September 30 June 30 March 31

EOP Share 2020 2019 2020 2020 2020Data:



Book Value $ 33.27 $ 33.12 $ 32.89 $ 32.35 $ 32.87 Per Share

Tangible BookValue PerShare $ 19.15 $ 18.27 $ 18.84 $ 18.28 $ 18.06 (non-GAAP) ^(1)



52-week HighCommon Stock $ 39.07 $ 40.70 $ 40.70 $ 40.70 $ 40.70 Price

Date 01/02/20 11/05/19 11/05/19 11/05/19 11/05/19

52-week LowCommon Stock $ 19.67 $ 30.67 $ 19.67 $ 19.67 $ 19.67 Price

Date 03/23/20 01/02/19 03/23/20 03/23/20 03/23/20



EOP SharesOutstanding(Net of 129,188,507 101,553,671 129,762,348 129,755,395 101,723,600 TreasuryStock):



Memorandum Items:

EOP Employees(full-time 3,051 2,204 3,137 3,039 2,206 equivalent)



Note:

(1) TangibleBook Value Per Share:

TotalShareholders' $ 4,297,620 $ 3,363,833 $ 4,267,441 $ 4,197,855 $ 3,343,702 Equity (GAAP)

Less: Total (1,823,771 ) (1,507,945 ) (1,823,129 ) (1,825,887 ) (1,506,368 )Intangibles

TangibleEquity $ 2,473,849 $ 1,855,888 $ 2,444,312 $ 2,371,968 $ 1,837,334 (non-GAAP)

/ EOP SharesOutstanding(Net of 129,188,507 101,553,671 129,762,348 129,755,395 101,723,600 TreasuryStock)

Tangible BookValue Per $ 19.15 $ 18.27 $ 18.84 $ 18.28 $ 18.06 Share(non-GAAP)

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

Three Months Ended

December

December

September

June

March

Selected Yields and Net Interest Margin:

2020

2019

2020

2020

2020

Net Loans and Loans held for sale

4.18

%

4.65

%

4.17

%

4.21

%

4.60

%

Investment Securities

2.08

%

2.74

%

2.17

%

2.44

%

2.70

%

Money Market Investments/FFS

0.42

%

2.57

%

0.42

%

0.49

%

2.23

%

Average Earning Assets Yield

3.62

%

4.28

%

3.59

%

3.70

%

4.21

%

Interest-bearing Deposits

0.43

%

1.33

%

0.54

%

0.67

%

1.19

%

Short-term Borrowings

0.55

%

1.52

%

0.44

%

0.54

%

1.34

%

Long-term Borrowings

1.15

%

2.35

%

1.65

%

1.68

%

2.21

%

Average Liability Costs

0.48

%

1.50

%

0.66

%

0.82

%

1.37

%

Net Interest Spread

3.14

%

2.78

%

2.93

%

2.88

%

2.84

%

Net Interest Margin

3.33

%

3.29

%

3.18

%

3.18

%

3.30

%

Selected Financial Ratios:

Return on Average Assets

1.41

%

1.29

%

1.56

%

0.87

%

0.82

%

Return on Average Shareholders' Equity

8.51

%

7.42

%

9.68

%

5.40

%

4.82

%

Return on Average Tangible Equity (non-GAAP) (1)

14.72

%

13.38

%

16.94

%

9.58

%

8.77

%

Efficiency Ratio

54.57

%

54.28

%

53.43

%

57.68

%

56.71

%

Note:

(1) Return on Average Tangible Equity:

(a) Net Income (GAAP)

$

92,370

$

63,285

$

103,784

$

52,686

$

40,183

(b) Number of days

92

92

92

91

91

Average Total Shareholders' Equity (GAAP)

$

4,319,252

$

3,385,362

$

4,263,111

$

3,921,289

$

3,350,652

Less: Average Total Intangibles

(1,822,577

)

(1,508,851

)

(1,826,057

)

(1,708,683

)

(1,507,272

)

(c) Average Tangible Equity (non-GAAP)

$

2,496,675

$

1,876,511

$

2,437,054

$

2,212,606

$

1,843,380

Return on Average Tangible Equity (non-GAAP)

[(a) / (b)] x 366 or 365 / (c)

14.72

%

13.38

%

16.94

%

9.58

%

8.77

%



UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)



Three Months Ended

December December September June March

Selected Yieldsand Net Interest 2020 2019 2020 2020 2020Margin:



Net Loans andLoans held for 4.18 % 4.65 % 4.17 % 4.21 % 4.60 %sale

Investment 2.08 % 2.74 % 2.17 % 2.44 % 2.70 %Securities

Money Market 0.42 % 2.57 % 0.42 % 0.49 % 2.23 %Investments/FFS

Average Earning 3.62 % 4.28 % 3.59 % 3.70 % 4.21 %Assets Yield

Interest-bearing 0.43 % 1.33 % 0.54 % 0.67 % 1.19 %Deposits

Short-term 0.55 % 1.52 % 0.44 % 0.54 % 1.34 %Borrowings

Long-term 1.15 % 2.35 % 1.65 % 1.68 % 2.21 %Borrowings

Average Liability 0.48 % 1.50 % 0.66 % 0.82 % 1.37 %Costs

Net Interest 3.14 % 2.78 % 2.93 % 2.88 % 2.84 %Spread

Net Interest 3.33 % 3.29 % 3.18 % 3.18 % 3.30 %Margin



Selected Financial Ratios:



Return on Average 1.41 % 1.29 % 1.56 % 0.87 % 0.82 %Assets

Return on AverageShareholders' 8.51 % 7.42 % 9.68 % 5.40 % 4.82 %Equity

Return on AverageTangible Equity 14.72 % 13.38 % 16.94 % 9.58 % 8.77 %(non-GAAP) ^(1)

Efficiency Ratio 54.57 % 54.28 % 53.43 % 57.68 % 56.71 %



Note:

(1) Return onAverage Tangible Equity:

(a) Net Income $ 92,370 $ 63,285 $ 103,784 $ 52,686 $ 40,183 (GAAP)



(b) Number of days 92 92 92 91 91



Average TotalShareholders' $ 4,319,252 $ 3,385,362 $ 4,263,111 $ 3,921,289 $ 3,350,652 Equity (GAAP)

Less: Average (1,822,577 ) (1,508,851 ) (1,826,057 ) (1,708,683 ) (1,507,272 )Total Intangibles

(c) AverageTangible Equity $ 2,496,675 $ 1,876,511 $ 2,437,054 $ 2,212,606 $ 1,843,380 (non-GAAP)

Return on AverageTangible Equity (non-GAAP) 14.72 % 13.38 % 16.94 % 9.58 % 8.77 %[(a) / (b)] x 366or 365 / (c)

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

Year Ended

December

December

December

December

2020

2019

2018

2017

Selected Yields and Net Interest Margin:

Net Loans and Loans held for sale

4.27

%

4.85

%

4.77

%

4.56

%

Investment Securities

2.33

%

2.86

%

2.73

%

2.63

%

Money Market Investments/FFS

0.65

%

2.91

%

2.29

%

1.23

%

Average Earning Assets Yield

3.75

%

4.47

%

4.36

%

4.07

%

Interest-bearing Deposits

0.67

%

1.41

%

0.97

%

0.54

%

Short-term Borrowings

0.70

%

1.67

%

1.00

%

0.51

%

Long-term Borrowings

1.76

%

2.56

%

2.34

%

1.80

%

Average Liability Costs

0.80

%

1.60

%

1.15

%

0.69

%

Net Interest Spread

2.95

%

2.87

%

3.21

%

3.38

%

Net Interest Margin

3.24

%

3.39

%

3.58

%

3.58

%

Selected Financial Ratios:

Return on Average Assets

1.20

%

1.34

%

1.36

%

0.85

%

Return on Average Shareholders' Equity

7.30

%

7.80

%

7.84

%

5.09

%

Return on Average Tangible Equity (non-GAAP) (1)

12.90

%

14.26

%

14.65

%

9.18

%

Loans & Leases, net of unearned income / Deposit Ratio

85.46

%

98.99

%

95.91

%

94.08

%

Allowance for Loan & Lease Losses/ Loans & Leases, net of unearned income

1.34

%

0.56

%

0.57

%

0.59

%

Allowance for Credit Losses (2)/ Loans & Leases, net of unearned income

1.45

%

0.57

%

0.58

%

0.59

%

Nonaccrual Loans / Loans & Leases, net of unearned income

0.36

%

0.46

%

0.51

%

0.84

%

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

0.08

%

0.07

%

0.11

%

0.08

%

Non-performing Loans/ Loans & Leases, net of unearned income

0.75

%

0.96

%

1.06

%

1.30

%

Non-performing Assets/ Total Assets

0.59

%

0.75

%

0.83

%

1.01

%

Primary Capital Ratio

17.22

%

17.44

%

17.23

%

17.34

%

Shareholders' Equity Ratio

16.41

%

17.11

%

16.89

%

17.00

%

Price / Book Ratio

0.97

x

1.17

x

0.98

x

1.13

x

Price / Earnings Ratio

13.50

x

15.14

x

12.71

x

22.59

x

Efficiency Ratio

55.36

%

52.53

%

51.32

%

53.98

%

Notes:

(1) Return on Average Tangible Equity:

(a) Net Income (GAAP)

$

289,023

$

260,099

$

256,342

$

150,581

Average Total Shareholders' Equity (GAAP)

$

3,956,969

$

3,336,075

$

3,268,944

$

2,959,293

Less: Average Total Intangibles

(1,716,738

)

(1,511,501

)

(1,519,174

)

(1,319,109

)

(b) Average Tangible Equity (non-GAAP)

$

2,240,231

$

1,824,574

$

1,749,770

$

1,640,184

Return on Average Tangible Equity (non-GAAP) [(a) / (b)]

12.90

%

14.26

%

14.65

%

9.18

%

(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)

Year Ended

December December December December

2020 2019 2018 2017

Selected Yieldsand Net Interest Margin:

Net Loans andLoans held for 4.27 % 4.85 % 4.77 % 4.56 %sale

Investment 2.33 % 2.86 % 2.73 % 2.63 %Securities

Money Market 0.65 % 2.91 % 2.29 % 1.23 %Investments/FFS

Average Earning 3.75 % 4.47 % 4.36 % 4.07 %Assets Yield

Interest-bearing 0.67 % 1.41 % 0.97 % 0.54 %Deposits

Short-term 0.70 % 1.67 % 1.00 % 0.51 %Borrowings

Long-term 1.76 % 2.56 % 2.34 % 1.80 %Borrowings

Average Liability 0.80 % 1.60 % 1.15 % 0.69 %Costs

Net Interest 2.95 % 2.87 % 3.21 % 3.38 %Spread

Net Interest 3.24 % 3.39 % 3.58 % 3.58 %Margin



Selected Financial Ratios:

Return on Average 1.20 % 1.34 % 1.36 % 0.85 %Assets

Return on AverageShareholders' 7.30 % 7.80 % 7.84 % 5.09 %Equity

Return on AverageTangible Equity 12.90 % 14.26 % 14.65 % 9.18 %(non-GAAP) ^(1)

Loans & Leases,net of unearned 85.46 % 98.99 % 95.91 % 94.08 %income / DepositRatio

Allowance for Loan& Lease Losses/Loans & Leases, 1.34 % 0.56 % 0.57 % 0.59 %net of unearnedincome

Allowance forCredit Losses ^(2)/ Loans & Leases, 1.45 % 0.57 % 0.58 % 0.59 %net of unearnedincome

Nonaccrual Loans /Loans & Leases, 0.36 % 0.46 % 0.51 % 0.84 %net of unearnedincome

90-Day Past DueLoans/ Loans & 0.08 % 0.07 % 0.11 % 0.08 %Leases, net ofunearned income

Non-performingLoans/ Loans & 0.75 % 0.96 % 1.06 % 1.30 %Leases, net ofunearned income

Non-performingAssets/ Total 0.59 % 0.75 % 0.83 % 1.01 %Assets

Primary Capital 17.22 % 17.44 % 17.23 % 17.34 %Ratio

Shareholders' 16.41 % 17.11 % 16.89 % 17.00 %Equity Ratio

Price / Book Ratio 0.97 x 1.17 x 0.98 x 1.13 x

Price / Earnings 13.50 x 15.14 x 12.71 x 22.59 xRatio

Efficiency Ratio 55.36 % 52.53 % 51.32 % 53.98 %





Notes:

(1) Return onAverage Tangible Equity:

(a) Net Income $ 289,023 $ 260,099 $ 256,342 $ 150,581 (GAAP)



Average TotalShareholders' $ 3,956,969 $ 3,336,075 $ 3,268,944 $ 2,959,293 Equity (GAAP)

Less: Average (1,716,738 ) (1,511,501 ) (1,519,174 ) (1,319,109 )Total Intangibles

(b) AverageTangible Equity $ 2,240,231 $ 1,824,574 $ 1,749,770 $ 1,640,184 (non-GAAP)

Return on AverageTangible Equity 12.90 % 14.26 % 14.65 % 9.18 %(non-GAAP) [(a) /(b)]



(2) Includesallowances forloan losses and lending-relatedcommitments.

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

Three Months Ended

December

December

September

June

March

2020

2019

2020

2020

2020

Mortgage Banking Segment Data:

Applications

$

2,284,532

$

896,000

$

3,460,687

$

2,189,008

$

2,054,000

Loans originated

1,979,284

777,312

2,071,717

1,692,297

904,949

Loans sold

$

2,065,400

$

800,400

$

1,898,539

$

1,636,063

$

793,392

Purchase money % of loans closed

49

%

66

%

48

%

42

%

49

%

Realized gain on sales and fees as a % of loans sold

4.10

%

2.84

%

4.26

%

2.49

%

2.82

%

Net interest income

$

2,918

$

547

$

2,740

$

2,246

$

949

Other income

73,082

19,946

110,900

71,013

21,190

Other expense

41,193

18,419

43,417

35,261

20,757

Income taxes

5,656

192

14,823

6,946

273

Net income

$

29,151

$

1,882

$

55,400

$

31,052

$

1,109

Year Ended

December

December

December

December

2020

2019

2018

2017

Mortgage Banking Segment Data:

Applications

$

9,988,227

$

4,330,000

$

3,912,000

$

3,337,000

Loans originated

6,648,247

2,941,722

2,619,454

2,333,895

Loans sold

$

6,393,394

$

2,804,451

$

2,608,242

$

2,350,813

Purchase money % of loans closed

47

%

72

%

83

%

82

%

Realized gain on sales and fees as a % of loans sold

3.63

%

2.86

%

2.72

%

2.80

%

Net interest income

$

8,853

$

916

$

1,315

$

(69

)

Other income

276,185

83,884

68,555

58,532

Other expense

140,628

72,288

72,632

62,072

Income taxes (benefit)

27,698

2,355

(505

)

(901

)

Net income (loss)

$

116,712

$

10,157

$

(2,257

)

$

(2,708

)

December 31

December 31

September 30

June 30

March 31

2020

2019

2020

2020

2020

Period End Mortgage Banking Segment Data:

Locked pipeline

$

989,640

$

143,465

$

1,398,898

$

889,275

$

739,322

Balance of loans serviced

$

3,587,953

$

0

$

3,551,157

$

3,552,292

$

0

Number of loans serviced

25,614

0

25,813

25,609

0

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)



Three Months Ended

December December September June March

2020 2019 2020 2020 2020

MortgageBanking SegmentData:

Applications $ 2,284,532 $ 896,000 $ 3,460,687 $ 2,189,008 $ 2,054,000

Loans 1,979,284 777,312 2,071,717 1,692,297 904,949 originated

Loans sold $ 2,065,400 $ 800,400 $ 1,898,539 $ 1,636,063 $ 793,392

Purchasemoney % of 49 % 66 % 48 % 42 % 49 %loans closed

Realizedgain onsales and 4.10 % 2.84 % 4.26 % 2.49 % 2.82 %fees as a %of loanssold

Net interest $ 2,918 $ 547 $ 2,740 $ 2,246 $ 949 income

Other income 73,082 19,946 110,900 71,013 21,190

Other 41,193 18,419 43,417 35,261 20,757 expense

Income taxes 5,656 192 14,823 6,946 273

Net income $ 29,151 $ 1,882 $ 55,400 $ 31,052 $ 1,109



Year Ended

December December December December

2020 2019 2018 2017

MortgageBanking SegmentData:

Applications $ 9,988,227 $ 4,330,000 $ 3,912,000 $ 3,337,000

Loans 6,648,247 2,941,722 2,619,454 2,333,895 originated

Loans sold $ 6,393,394 $ 2,804,451 $ 2,608,242 $ 2,350,813

Purchasemoney % of 47 % 72 % 83 % 82 %loans closed

Realizedgain onsales and 3.63 % 2.86 % 2.72 % 2.80 %fees as a %of loanssold

Net interest $ 8,853 $ 916 $ 1,315 $ (69 )income

Other income 276,185 83,884 68,555 58,532

Other 140,628 72,288 72,632 62,072 expense

Income taxes 27,698 2,355 (505 ) (901 )(benefit)

Net income $ 116,712 $ 10,157 $ (2,257 ) $ (2,708 )(loss)





December 31 December 31 September 30 June 30 March 31

2020 2019 2020 2020 2020

Period EndMortgageBanking SegmentData:

Locked $ 989,640 $ 143,465 $ 1,398,898 $ 889,275 $ 739,322 pipeline

Balance ofloans $ 3,587,953 $ 0 $ 3,551,157 $ 3,552,292 $ 0 serviced

Number ofloans 25,614 0 25,813 25,609 0 serviced



UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

December 31

December 31

September 30

June 30

March 31

2020

2019

2020

2020

2020

Asset Quality Data:

EOP Non-Accrual Loans

$

62,718

$

63,209

$

71,312

$

67,669

$

64,036

EOP 90-Day Past Due Loans

13,832

9,494

12,583

11,150

7,051

EOP Restructured Loans (1)

55,657

58,369

68,381

77,436

61,470

Total EOP Non-performing Loans

$

132,207

$

131,072

$

152,276

$

156,255

$

132,557

EOP Other Real Estate Owned

22,595

15,515

25,696

29,947

15,849

Total EOP Non-performing Assets

$

154,802

$

146,587

$

177,972

$

186,202

$

148,406

Three Months Ended

December

December

September

June

March

2020

2019

2020

2020

2020

Allowance for Loan Losses:

Beginning Balance

$

225,812

$

77,098

$

215,121

$

154,923

$

77,057

Cumulative Effect Adjustment for CECL

0

0

0

0

57,442

225,812

77,098

215,121

154,923

134,499

Initial allowance for acquired PCD loans

0

0

0

18,635

0

Gross Charge-offs

(10,120

)

(9,704

)

(8,468

)

(5,634

)

(8,761

)

Recoveries

3,203

3,796

2,820

1,290

2,073

Net Charge-offs

(6,917

)

(5,908

)

(5,648

)

(4,344

)

(6,688

)

Provision for Loan & Lease Losses

16,935

5,867

16,339

45,907

27,112

Ending Balance

$

235,830

$

77,057

$

225,812

$

215,121

$

154,923

Reserve for lending-related commitments

19,250

1,733

15,960

11,946

7,742

Allowance for Credit Losses (2)

$

255,080

$

78,790

$

241,772

$

227,067

$

162,665

Year Ended

December

December

December

December

2020

2019

2018

2017

Allowance for Loan Losses:

Beginning Balance

$

77,057

$

76,703

$

76,627

$

72,771

Cumulative Effect Adjustment for CECL

57,442

0

0

0

134,499

76,703

76,627

72,771

Initial allowance for acquired PCD loans

18,635

0

0

0

Gross Charge-offs

(32,983

)

(29,110

)

(28,606

)

(32,863

)

Recoveries

9,386

8,151

6,669

8,313

Net Charge-offs

(23,597

)

(20,959

)

(21,937

)

(24,550

)

Provision for Loan & Lease Losses

106,293

21,313

22,013

28,406

Ending Balance

$

235,830

$

77,057

$

76,703

$

76,627

Reserve for lending-related commitments

19,250

1,733

1,389

679

Allowance for Credit Losses (2)

$

255,080

$

78,790

$

78,092

$

77,306

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)





December 31 December 31 September June 30 March 31 30

2020 2019 2020 2020 2020

Asset Quality Data:

EOP Non-Accrual $ 62,718 $ 63,209 $ 71,312 $ 67,669 $ 64,036 Loans

EOP 90-Day Past 13,832 9,494 12,583 11,150 7,051 Due Loans

EOPRestructured 55,657 58,369 68,381 77,436 61,470 Loans ^(1)

Total EOPNon-performing $ 132,207 $ 131,072 $ 152,276 $ 156,255 $ 132,557 Loans



EOP Other Real 22,595 15,515 25,696 29,947 15,849 Estate Owned

Total EOPNon-performing $ 154,802 $ 146,587 $ 177,972 $ 186,202 $ 148,406 Assets



Three Months Ended

December December September June March

2020 2019 2020 2020 2020

Allowance for Loan Losses:

Beginning $ 225,812 $ 77,098 $ 215,121 $ 154,923 $ 77,057 Balance

CumulativeEffect 0 0 0 0 57,442 Adjustment forCECL

225,812 77,098 215,121 154,923 134,499

Initialallowance for 0 0 0 18,635 0 acquired PCDloans

Gross (10,120 ) (9,704 ) (8,468 ) (5,634 ) (8,761 )Charge-offs

Recoveries 3,203 3,796 2,820 1,290 2,073

Net Charge-offs (6,917 ) (5,908 ) (5,648 ) (4,344 ) (6,688 )

Provision forLoan & Lease 16,935 5,867 16,339 45,907 27,112 Losses

Ending Balance $ 235,830 $ 77,057 $ 225,812 $ 215,121 $ 154,923

Reserve forlending-related 19,250 1,733 15,960 11,946 7,742 commitments

Allowance forCredit Losses $ 255,080 $ 78,790 $ 241,772 $ 227,067 $ 162,665 (2)





Year Ended

December December December December

2020 2019 2018 2017

Allowance for Loan Losses:

Beginning $ 77,057 $ 76,703 $ 76,627 $ 72,771 Balance

CumulativeEffect 57,442 0 0 0 Adjustment forCECL

134,499 76,703 76,627 72,771

Initialallowance for 18,635 0 0 0 acquired PCDloans

Gross (32,983 ) (29,110 ) (28,606 ) (32,863 )Charge-offs

Recoveries 9,386 8,151 6,669 8,313

Net Charge-offs (23,597 ) (20,959 ) (21,937 ) (24,550 )

Provision forLoan & Lease 106,293 21,313 22,013 28,406 Losses

Ending Balance $ 235,830 $ 77,057 $ 76,703 $ 76,627

Reserve forlending-related 19,250 1,733 1,389 679 commitments

Allowance forCredit Losses $ 255,080 $ 78,790 $ 78,092 $ 77,306 (2)



Notes:(1)

Restructured loans with an aggregate balance of $41,185, $53,665, $59,916, $51,775 and $48,387 at December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020 and December 31, 2019, respectively, were on nonaccrual status, but are not included in "EOP Non-Accrual Loans" above.

(2)

Includes allowances for loan losses and lending-related commitments.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210128005242/en/

CONTACT: W. Mark Tatterson Chief Financial Officer (800) 445-1347 ext. 8716