United Bank Announces Results for the Third Quarter, First Nine Months of 2022 | News, Sports, Jobs


PARKERSBURG – United Bankshares Inc. reported third-quarter 2022 earnings of $102.6 million, or 76 cents per diluted share, compared with earnings of $95.6 million, or 71 cents per diluted share, for the second quarter of 2022.

The quarter was marked by continued broad-based loan growth, net interest margin expansion and strong credit quality measures.

Annualized loan growth, excluding Paycheck Protection Program loans, for the third quarter and first nine months of 2022 was 16% and 15%, respectively. Third quarter 2022 net interest margin of 3.78% increased 40 basis points from second quarter 2022. Non-performing loans as a percentage of loans and leases, net of unearned revenue, were 0.35% as of September 30. Third-quarter 2022 results produced annualized returns on average assets, average equity and average tangible equity, a non-GAAP measure, of 1.41%, 8.96% and 15.46%, respectively, compared to annualized returns on average assets, average equity and average tangible equity of 1.32%, 8.33% and 14.23%, respectively, for the second quarter of 2022.

“The third quarter of 2022 was another great quarter for UBSI,” Richard M. Adams, Jr., CEO of United, said. “The company delivered strong results related to loan growth, margin expansion, expense control and asset quality. The vitality of our markets, the strength of our deposit franchise and our conservative and disciplined approach to managing our business have served us well in this environment and will provide us with opportunities in the future.

Net interest income for the third quarter of 2022 increased by $25.7 million, or 12%, compared to the second quarter of 2022.

Tax-equivalent net interest income, a non-GAAP measure that takes into account the favorable tax status of income from certain loans and investments, for the third quarter of 2022 also increased by $25.7 million, or 12%. , compared to the second quarter of 2022.

A decrease in average earning assets of $188.1 million, or 1%, from the second quarter of 2022 was due to a decrease in short-term investments of $818.5 million, partially offset by increases in Average higher yielding net loans and loans held for sale of $627.6. million.

The provision for credit losses was $7.7 million for the third quarter of 2022, compared to net income of $1.8 million for the second quarter of 2022. The increase in the provision for credit losses is mainly due to loan growth.

Non-interest revenue for the third quarter of 2022 decreased $10.9 million, or 25%, compared to the second quarter of 2022. Non-interest expense for the third quarter of 2022 decreased $4.0 million, or 3%, compared to the second quarter of 2022. The charge was primarily due to a decrease in the charge for the reserve for unfunded loan commitments of $8.8 million and $3.0 million in employee compensation, partially offset by a $6.1 million increase in other non-interest expense.

For the third quarter of 2022, income tax expense was $25.9 million, compared to $23.5 million for the second quarter of 2022. The increase of $2.4 million dollars is due to higher profits and a higher effective tax rate. United’s effective tax rate was 20.2% and 19.8% for the third and second quarters of 2022, respectively.

United has completed its acquisition of Community Bankers Trust Corp. December 3. The increase in net interest income and tax equivalent net interest income was primarily due to the impact of higher average earning assets, driven by the acquisition of Community Bankers Trust and organic growth. loan growth, the impact of higher market interest rates on earning assets and a shift in asset mix towards higher earning assets. These increases were partially offset by higher interest expense primarily due to deposit rate repricing, lower PPP loan fee income and lower revaluation income from acquired loans.

As of September 30, United had consolidated assets of approximately $29 billion. United is the parent company of United Bank which has nearly 250 offices in Virginia, Maryland, Washington, DC, North Carolina, South Carolina, Georgia, Pennsylvania, West Virginia and Ohio. United shares trade on the NASDAQ Global Select Market under the ticker symbol UBSI.



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