CHARLESTON -- United Bankshares, Inc. today reported earnings for the third quarter and the first nine months of 2009. Third quarter of 2009 earnings were $17.4 million or $0.40 per diluted share while earnings for the first nine months of 2009 were $55.2 million or $1.27 per diluted share.
“We are pleased with the financial performance results for the first nine months of 2009, especially in light of the very challenging economic times,” Richard M. Adams, United’s Chairman of the Board and Chief Executive Officer, said in a prepared statement. “While earnings are down compared to last year, United’s earnings for the first nine months of 2009 compare very favorably to most regional banking companies as evidenced by a return on average assets of nearly 1% as compared to -0.22% for the first six months of 2009 for United’s Federal Reserve peer group of bank holding companies with total assets between $3 and $10 billion.”
Earnings for the third quarter of 2008 were $19.6 million or $0.45 per diluted share. Earnings for the first nine months of 2008 were $70.4 million or $1.62 per diluted share.
United’s asset quality also continues to compare favorably to its peers. United’s percentage of nonperforming loans to loans, net of unearned income of 1.26% at September 30, 2009 compares favorably to the most recently reported percentage of 3.61% at June 30, 2009 for United’s Federal Reserve peer group. At September 30, 2009, nonperforming loans were $72.9 million or 1.26% of loans, net of unearned income, up from nonperforming loans of $60.5 million or 1.03% of loans, net of unearned income at June 30, 2009 and nonperforming loans of $54.2 million or 0.90% of loans, net of unearned income at December 31, 2008. The increase in nonperforming loans since year-end 2008 is indicative of the current economic conditions. High unemployment levels and the recent economic recession have impacted the performance of both consumer and commercial portfolios. Any probable loss on these loans has been properly evaluated and allocated within the company’s allowance for loan losses. As of September 30, 2009, the allowance for loan losses was $68.1 million or 1.18% of loans, net of unearned income, as compared to $61.5 million or 1.02% of loans, net of unearned income at December 31, 2008. United’s coverage ratio of its allowance for loan losses to nonperforming loans also compares favorably to its peers. The coverage ratio for United was 93.4% and 113.5% at September 30, 2009 and December 31, 2008, respectively. The coverage ratio for United’s Federal Reserve peer group was 81.1% at June 30, 2009. Total nonperforming assets of $117.6 million, including OREO of $44.8 million at September 30, 2009, represented 1.45% of total assets which also compares favorably to the most recently reported percentage of 2.97% at June 30, 2009 for United’s Federal Reserve peer group.
During the third quarter of 2009, United’s Board of Directors declared a cash dividend of $0.29 per share. The annualized 2009 dividend of $1.16 equates to a yield over 6% based on recent UBSI market prices.
United Bankshares, with $8.1 billion in assets, presently has 113 full-service offices in West Virginia, Virginia, Maryland, Ohio, and Washington, D.C. United Bankshares stock is traded on the NASDAQ Global Select Market under the quotation symbol "UBSI."
No comments:
Post a Comment