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United Bankshares, Inc. Announces Increased Earnings in 1st Quarter of 2019

04/25/2019
Corporate & Financial

WASHINGTON, D.C. and CHARLESTON, WV-- United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today announced earnings for the first quarter of 2019. Earnings for the first quarter of 2019 were $63.6 million, an increase from earnings of $61.7 million for the first quarter of 2018. Diluted earnings per share were $0.62 for the first quarter of 2019, an increase from diluted earnings per share of $0.59 for the first quarter of 2018.

United’s first quarter of 2019 results produced an annualized return on average assets of 1.34% and an annualized return on average equity of 7.88%. United’s annualized returns on average assets and average equity were 1.35% and 7.65%, respectively, for the first quarter of 2018.

“United is off to a great start in 2019,” stated Richard M. Adams, United’s Chairman and Chief Executive Officer. “We are pleased to announce an increase in earnings from the first quarter of 2018. Our annualized return on average assets of 1.34% for the quarter is ahead of our peers’ most recently reported return on average assets of 1.24% for the year of 2018.”

Net interest income for the first quarter of 2019 was $144.2 million, which was relatively flat from the first quarter of 2018, increasing $125 thousand or less than 1%. The $125 thousand increase in net interest income occurred because total interest income increased $21.9 million while total interest expense increased $21.8 million from the first quarter of 2018. Tax-equivalent net interest income, which adjusts for the tax-favored status of income from certain loans and investments, for the first quarter of 2019 was $145.2 million, which was relatively flat from the first quarter of 2018, increasing $14 thousand or less than 1% due mainly to an increase in average earning assets mostly offset by an increase in the average cost of funds. Average earning assets for the first quarter of 2019 increased $667.2 million or 4% from the first quarter of 2018 due mainly to increases of $538.4 million or 4% in average net loans and $369.5 million or 17% in average investment securities. Average short-term investments decreased $240.7 million or 25%. In addition, the average yield on earning assets for the first quarter of 2019 increased 35 basis points from the first quarter of 2018 due to higher market rates. Mostly offsetting these increases to tax-equivalent net interest income for the first quarter of 2019 was an increase of 73 basis points in the average cost of funds as compared to the first quarter of 2018 due to higher market interest rates. In addition, loan accretion on acquired loans was $8.5 million and $10.8 million for the first quarter of 2019 and 2018, respectively, decreasing $2.3 million or 21%. The net interest margin of 3.46% for the first quarter of 2019 was a decrease of 15 basis points from the net interest margin of 3.61% for the first quarter of 2018.

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