United Bankshares(US:UBSI)2024-11-08 16:28Financial Position - As of September 30, 2024, United's total assets were $29.86 billion, a decrease of $63.22 million or less than 1% from December 31, 2023[138]. - Total liabilities decreased by $259.80 million or 1.03% from year-end 2023, with borrowings decreasing by $1.26 billion or 63.63%[138]. - Shareholders' equity increased by $196.58 million or 4.12%[138]. - Total deposits increased by $1.01 billion or 4.42% to $23.83 billion as of September 30, 2024[147]. - Total liabilities as of September 30, 2024, were $24.594 billion, with interest-bearing liabilities totaling $18.339 billion[162]. - Total assets increased to $29,503,324 thousand as of September 30, 2024, compared to $29,370,164 thousand at June 30, 2024, reflecting a growth of 0.45%[163]. - Total shareholders' equity was $4.97 billion at September 30, 2024, an increase of $196.58 million or 4.12% from December 31, 2023, primarily due to an increase in retained earnings[176]. Cash and Deposits - Cash and cash equivalents increased by $309.89 million or 19.38% from year-end 2023, primarily due to a $288.98 million or 21.56% increase in interest-bearing deposits with other banks[139]. - Interest-bearing deposits increased by $1.12 billion or 6.72% from December 31, 2023[147]. - Average interest-bearing deposits increased by $1.41 billion or 8.79% from Q3 2023, indicating growth in the deposit base[158]. - Average interest-bearing deposits increased by $659.24 million, or 3.94%, from Q2 2024, with the yield rising by 10 basis points to 3.28%[159]. Loans and Credit - Total loans, net of unearned income, increased by $262.88 million or 1.23% since year-end 2023[144]. - Loans held for sale decreased by $9.77 million or 17.36% to $46.49 million since year-end 2023[143]. - The allowance for loan and lease losses increased to $270.77 million as of September 30, 2024, from $259.24 million at December 31, 2023, driven by higher outstanding loan balances[166]. - Nonperforming loans increased by $21.53 million from December 31, 2023, primarily due to the transfer of significant commercial and residential loans to nonaccrual status[166]. - Total nonperforming loans increased to $65,240 thousand as of September 30, 2024, up from $45,498 thousand on December 31, 2023, representing a 43.5% increase[167]. - Net charge-offs for Q3 2024 were $3.60 million, compared to $1.78 million in Q3 2023, reflecting a significant rise in consumer loan charge-offs[165]. Income and Expenses - Net income for Q3 2024 was $95.27 million, a decrease from $96.16 million in Q3 2023, while net income for the first nine months of 2024 was $278.59 million compared to $286.92 million in the same period of 2023[155]. - Noninterest income for Q3 2024 was $31.94 million, a decrease of $1.72 million or 5.11% from Q3 2023, primarily due to lower income from mortgage banking activities[157]. - Noninterest expense for Q3 2024 was $135.34 million, relatively flat compared to Q3 2023, with an increase of only $109 thousand[172]. - Employee compensation increased by $3.30 million or 1.90% for the first nine months of 2024 compared to the same period in 2023[172]. Interest Income and Margin - Net interest income for the third quarter of 2024 was $230.26 million, a slight increase from $228.45 million in the same quarter of 2023[154]. - The net interest margin for Q3 2024 was 3.52%, an increase of 2 basis points from Q2 2024[159]. - Tax-equivalent net interest income for Q3 2024 increased by $4.50 million, or 1.99%, from Q2 2024, driven by higher average short-term investments and net loans yield[159]. - The yield on average net loans and loans held for sale increased by 6 basis points to 6.20% in Q3 2024[159]. Mergers and Acquisitions - United entered into a merger agreement with Piedmont Bancorp, Inc., which has total assets of approximately $2.2 billion and total loans of approximately $1.9 billion as of September 30, 2024[132]. - United recorded expenses of $332 thousand related to the Piedmont acquisition in Q3 2024, with total expenses of $1.61 million for the first nine months of 2024[155]. Risk Management - Interest rate risk is considered the most significant market risk for United, with a focus on maintaining consistent growth in net interest income[178]. - The company utilizes various measurement techniques, including earnings simulation models, to manage interest rate risk and assess the sensitivity of net interest income[180]. - United may use derivative instruments, such as interest rate swaps, to protect against adverse price or interest rate movements[181]. Regulatory and Compliance - United's risk-based capital ratio was 16.18% at September 30, 2024, well above the regulatory requirement of 10.0% for a well-capitalized financial institution[176]. - The company has not experienced any changes in internal control over financial reporting that materially affect its financial reporting as of September 30, 2024[185]. - United's management concluded that its disclosure controls and procedures were effective as of September 30, 2024, ensuring compliance with SEC requirements[183].