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United Bankshares Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 5, 2010 10:20AM
United Bankshares Inc. (UBSI) filed Quarterly Report for the period ended 2010-06-30. United Bankshares Inc. has a market cap of $1.15 billion; its shares were traded at around $26.32 with a P/E ratio of 16.4 and P/S ratio of 2.7. The dividend yield of United Bankshares Inc. stocks is 4.5%.
Highlight of Business Operations:
Uniteds total assets as of June 30, 2010 were $7.46 billion which was a decline of $341.74 million or 4.38% from December 31, 2009. The decrease was primarily the result of decreases in investment securities, portfolio loans and other assets of $48.83 million or 5.05%, $273.26 million or 4.76%, and $10.70 million or 3.37%, respectively. The decrease in total assets is reflected in a corresponding decrease in total liabilities of $357.77 million or 5.08% from year-end 2009. The decrease in total liabilities was due mainly to reductions of $356.96 million or 5.98% and $8.96 million or 11.88% in deposits and accrued expenses and other liabilities, respectively, from year-end 2009. Shareholders equity increased $16.03 million or 2.10% from year-end 2009.
Total investment securities at June 30, 2010 decreased $48.83 million or 5.05% from year-end 2009. Securities available for sale declined $42.18 million or 5.20%. This change in securities available for sale reflects $378.65 million in sales, maturities and calls of securities, $338.55 million in purchases, and an increase of $811 thousand in market value. Securities held to maturity decreased $8.72 million or 11.26% from year-end 2009 due to calls and maturities of securities. Other investment securities increased $2.07 million or 2.66% from year-end 2009.
Loans held for sale decreased $4.41 million or 83.36% as loan sales exceeded loan originations in the secondary market during the first six months of 2010. Portfolio loans, net of unearned income, decreased $273.26 million or 4.76% from year-end 2009 due mainly to decreases in virtually all loan categories as loan demand remains soft due to current economic conditions. Single family residential real estate loans, commercial loans (not secured by real estate) and consumer loans decreased $80.51 million or 4.33%, $61.39 million or 5.54%, and $42.47 million or 13.34%, respectively. In addition, commercial real estate loans decreased $39.13 million or 2.42% and construction loans declined $55.25 million or 9.87% from year-end 2009. These decreases were partially offset by an increase from year-end 2009 in other real estate loans of $4.91 million or 1.78%.
Other assets decreased $10.70 million or 3.37% from year-end 2009 due mainly to decreases in prepaid FDIC assessments of $4.26 million due to a required three year prepayment of premiums in the fourth quarter of 2009, OREO of $4.04 million due to sales and a decline in property values, deferred tax assets of $3.09 million, and core deposit intangibles of $1.02 million due to amortization. Partially offsetting these decreases from year-end 2009 was a net increase of $2.21 million in cash surrender values of bank-owned life insurance policies and an increase of $1.26 million in derivatives assets due to a change in fair value.
Total deposits at June 30, 2010 decreased $356.96 million or 5.98% from year-end 2009. In terms of composition, noninterest-bearing deposits increased $26.96 million or 2.43% while interest-bearing deposits decreased $383.91 million or 7.89% from December 31, 2009. The increase in noninterest-bearing deposits was due mainly to an increase in commercial noninterest-bearing deposits of $56.92 million or 7.25%. Personal noninterest-bearing deposits, public noninterest-bearing deposits and official checks declined $10.74 million or 3.95%, $10.11 million or 42.70% and $7.89 million or 18.41%, respectively.
The decrease in interest-bearing deposits was due mainly to declines in time deposits over $100,000 of $319.37 million or 24.09% and time deposits under $100,000 of $164.68 million or 11.69%. The $319.37 million decrease in time deposits over $100,000 was mostly due to decreases of $182.96 million in Certificate of Deposit Account Registry Service (CDARS) balances, $60.84 million in brokered deposits and $60.00 million and $14.20 million in fixed-rate and variable-rate certificate of deposits (CDs) over $100,000, respectively. The $164.68 million decrease in time deposits under $100,000 was mainly the result of decreases in CDARS balances of $78.00 million, fixed-rate CDs of $54.29 million and variable-rate CDs of $36.26 million. Partially offsetting these decreases in interest-bearing deposits were increases of $64.94 million or 4.27% in interest-bearing money market accounts (MMDAs), $23.73 million or 6.80% in regular savings balances, and $11.47 million or 4.45% in interest-bearing checking accounts.
Stocks Discussed: UBSI,