United Bankshares Inc. Announces Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Reports Net Charge-offs for the Fourth Quarter Ended December 31, 2017; Provides Tax Rate Guidance for the Year 2018
January 30, 2018 at 08:01 am EST
Share
United Bankshares Inc. announced consolidated earnings results for the fourth quarter and full year ended December 31, 2017. For the quarter, the company reported net interest income of $154,856,000 compared to $113,253,000 a year ago. The $41.6 million increase in net interest income occurred because total interest income increased $50.9 million while total interest expense only increased $9.3 million from the fourth quarter of 2016. Tax-equivalent net interest income, which adjusts for the tax-favored status of income from certain loans and investments, for the fourth quarter of 2017 was $157.1 million, an increase of $42.3 million or 37% from the fourth quarter of 2016 due mainly to an increase in average earning assets from the Cardinal acquisition. Income before income taxes was $84,865,000 compared to $61,578,000 a year ago. Net income was $17,975,000 or $0.17 per basic and diluted share compared to $39,106,000 or $0.51 per basic and diluted share a year ago. Return on average assets was 0.38% compared to 1.10% a year ago. Return on average shareholder's equity was 2.17% compared to 7.50% a year ago. Income before income taxes (FTE) (non-GAAP) was $87,126,000 compared to $63,137,000 a year ago. Interest income was $176,518,000 against $125,621,000 reported last year.
For the year, the company reported net interest income of $548,997,000 compared to $425,331,000 a year ago. This is because total interest income increased $153.5 million while total interest expense only increased $29.8 million from the year of 2016. Tax-equivalent net interest income for the year of 2017 was $557.4 million, an increase of $126.0 million or 29% from the year of 2016. This increase in tax-equivalent net interest income was primarily attributable to an increase in average earning assets from the Cardinal acquisition. Income before income taxes was $284,827,000 compared to $222,658,000 a year ago. Net income was $150,581,000 or $1.54 per basic and diluted share compared to $147,083,000 or $1.99 per diluted share a year ago. Book value per share was $30.85 compared to $27.59 a year ago. Return on average assets was 0.85% compared to 1.10% a year ago. Return on average shareholder's equity was 5.09% compared to 7.67% a year ago. Income before income taxes (FTE) (non-GAAP) was $293,256,000 compared to $228,779,000 a year ago. Tangible book value per share (non-GAAP) was $16.35 compared to $16.65 a year ago. Interest income was $623,806,000 against $470,341,000 reported last year.
The company reported net charge-offs of $5.3 million for the fourth quarter ended December 31, 2017.
For the year 2018, the company's tax rate estimated at approximately 22.5% to 23.0%.
United Bankshares, Inc. is a financial holding company. The Company's segments include community banking and mortgage banking. The community banking segment includes both commercial and consumer lending and provides customers with such products as commercial loans, real estate loans, business financing and consumer loans. In addition, this segment provides customers with several choices of deposit products including demand deposit accounts, savings accounts and certificates of deposit as well as investment and financial advisory services to businesses and individuals, including financial planning, retirement/estate planning, and investment management. The mortgage banking segment engages primarily in the origination and acquisition of residential mortgages for sale into the secondary market though Unitedâs mortgage banking subsidiaries, George Mason and Crescent. The Company has one banking subsidiary doing business under the name of United Bank. It also owns nonbank subsidiaries.
United Bankshares Inc. Announces Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Reports Net Charge-offs for the Fourth Quarter Ended December 31, 2017; Provides Tax Rate Guidance for the Year 2018