United Bankshares, Inc. Q3 FY2021 earnings call

• Net income was $6.5 million for Q3 2021, compared to $5.4 million in Q2 2021 and $4.5 million in Q3 2020.
• Provision for loan losses was a credit of $1.25 million in Q3 2021 vs no provision in Q2 2021.
• Net interest income increased $298,000 or 2.1% QoQ, with interest expense declining $81,000.
• Tax equivalent net interest margin was 3.52% in Q3 2021 vs 3.58% in Q2 2021; excluding PPP related items, margin was 3.39% in Q3 2021.
• For first nine months of 2021 vs 2020: provision for loan losses was a reserve recovery of $2.65 million vs $4.2 million in 2020; interest expense declined $5.1 million; net interest margin increased to 3.58% from 3.48%.
• Loans excluding purchase credit impaired loans grew $53.3 million or 4.5% YOY. Nonperforming assets were $4 million in Q3 2021, $4.6 million lower than YOY, with ratio of non-performing assets to loans etc. at 0.33% vs 0.73% YOY.
• Deposits grew $129.5 million or 9.5% YOY; noninterest bearing deposits grew $64 million or 22.7% YOY. Total securities increased $53.3 million in Q3 2021, with cash and equivalents declining as excess liquidity was invested into higher yielding assets.

No specific product segments were detailed. Overall, net income for the quarter ended September 30, 2021 was $6.5 million. Net interest income increased $298,000 or 2.1% in the third quarter compared to the second quarter. Loans excluding purchase credit impaired loans grew $39.1 million or 3.3% during the third quarter of 2021. Deposits grew $10 million or seven tenths of 1% during the third quarter of 2021. Total securities were $402.9 million at September 30, 2021, increased $53.3 million during the third quarter.

• Expect to be merged into United Bank by end of Q4 2021 subject to approvals.
• Excited about merger bringing additional resources, products/services for market share growth and value-added to customers.

• Actual results may differ materially from forward-looking statements due to factors included in earnings release, most recent Form 10-K and other reports filed with SEC.

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