United Bankshares Inc. Announces Record Earnings For The Second Quarter And The First Half Of 2019
After a strong start to 2019, United Bankshares Inc. continues to report record earnings throughout the second quarter of this year.
Earnings for Q2 2019 were a record $67.2M, compared to earnings of $66.3M for Q2 2018. Diluted earnings per share were $0.66 for Q2 2019 as compared to diluted earnings per share of $0.63 for Q2 2018.
Earnings for the first half of 2019 were a record $130.8M as compared to earnings of $128M for the first half of 2018. Diluted earnings per share were $1.28 for the first half of 2019, compared to diluted earnings per share of $1.22 for the first half of 2018.
“We are pleased to report a continuation of strong financial performance as we announce record earnings for the second quarter and first half of 2019,” United Chairman and CEO Richard M. Adams said.
Q2 2019 results produced an annualized return on average assets of 1.38%, an annualized return on average equity of 8.12% and an annualized return on average tangible equity of 14.9%, respectively. For the first half of 2019, United’s annualized return on average assets was 1.36%, while the annualized return on average equity was 8% and the annualized return on average tangible equity was 14.78%.
United’s annualized returns on average assets, average equity and average tangible equity were 1.42%, 8.11% and 15.14%, respectively, for Q2 2018. The annualized returns on average assets, average equity and average tangible equity were 1.39%, 7.88% and 14.72%, respectively, for the first half of 2018.
Net interest income for Q2 2019 was $150.6M, which was relatively flat from Q2 2018, increasing $1.4M, or less than 1%. The $1.4M increase in net interest income occurred because total interest income increased $21.2M, while total interest expense increased $19.8M from Q2 2018.
Net interest income for the first half of 2019 was $294.7M, which was relatively flat from the first half of 2018, increasing $1.6M, or less than 1%. The $1.6M increase in net interest income occurred because total interest income increased $43.2M while total interest expense increased $41.6M from the first half of 2018.
United’s asset quality continues to be sound. As of June 30, nonperforming loans were $142.6M, or 1.05% of loans, net of unearned income, relatively flat from nonperforming loans of $142.8M, or 1.06% of loans, net of unearned income, at Dec. 31, 2018.
As of June 30, the allowance for loan losses was $76.4M, or 0.56% of loans, net of unearned income, as compared to $76.7M or 0.57% of loans, net of unearned income, on Dec. 31. Total nonperforming assets of $157.1M, including OREO of $14.5M as of June 30, represented 0.79% of total assets as compared to nonperforming assets of $159.7M or 0.83% at Dec. 31.
United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio was 14.3% on June 30, while its estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 12.2%, 12.2% and 10.2%, respectively. The regulatory requirements for a well-capitalized financial institution are a risk-based capital ratio of 10%, a Common Equity Tier 1 capital ratio of 6.5%, a Tier 1 capital ratio of 8% and a leverage ratio of 5%.
As of June 30, United had consolidated assets of approximately $19.9B.
United is the parent company of United Bank, the largest community bank headquartered in the D.C. metro region. United Bank, which comprises 139 full-service banking offices and 17 George Mason Mortgage LLC locations, is throughout Virginia, West Virginia, Maryland, North Carolina, South Carolina, Ohio, Pennsylvania and Washington, D.C. United’s stock is traded on the NASDAQ Global Select Market under the quotation symbol "UBSI.”
This feature was produced in collaboration between Bisnow Branded Content and United Bank. Bisnow news staff was not involved in the production of this content.
