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United Bankshares Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: May 6, 2011 01:19PM
United Bankshares Inc. (UBSI) filed Quarterly Report for the period ended 2011-03-31. United Bankshares Inc. has a market cap of $1.1 billion; its shares were traded at around $25.16 with a P/E ratio of 15.1 and P/S ratio of 2.9. The dividend yield of United Bankshares Inc. stocks is 4.8%.
Highlight of Business Operations:
Uniteds total assets as of March 31, 2011 were $7.19 billion which was an increase of $35.62 million or less than 1% from December 31, 2010. The increase was primarily the result of a $69.38 million or 15.04% increase in cash and cash equivalents and an $11.77 million or 1.48% increase in investment securities. Partially offsetting these increases in total assets was a decrease in portfolio loans of $37.37 million or less than 1%. The increase in total assets is reflected in a corresponding increase in total liabilities of $29.17 million or less than 1% from year-end 2010. The increase in total liabilities was due mainly to increases of $27.88 million or 4.81% and $2.75 million or 4.07% in borrowings and accrued expenses and other liabilities, respectively, while deposits remained flat, decreasing $1.6 million or less than 1% from year-end 2010. Shareholders equity was flat, increasing $6.45 million or less than 1% from year-end 2010.
Cash and cash equivalents at March 31, 2011 increased $69.38 million or 15.04% from year-end 2010. Of this total increase, interest-bearing deposits with other banks increased $40.97 million or 11.86% as United placed its excess cash in an interest-bearing account with the Federal Reserve while cash and due from banks increased $28.42 million or 24.63% and federal funds sold were flat. During the first three months of 2011, net cash of $36.64 million and $19.01 million was provided by operating activities and investing activities, respectively. Net cash of $13.74 million was provided in financing activities. See the unaudited Consolidated Statements of Cash Flows for data on cash and cash equivalents provided and used in operating, investing and financing activities for the first three months of 2011 and 2010.
Total investment securities at March 31, 2011 increased $11.77 million or 1.48% from year-end 2010. Securities available for sale increased $16.07 million or 2.46%. This change in securities available for sale reflects $220.94 million in sales, maturities and calls of securities, $237.83 million in purchases, and an increase of $2.27 million in market value. Securities held to maturity decreased $2.56 million or 3.82% from year-end 2010 due to calls and maturities of securities. Other investment securities decreased $1.74 million or 2.34% from year-end 2010.
Loans held for sale decreased $5.98 million or 87.04% as loan sales exceeded loan originations in the secondary market during the first three months of 2011. Portfolio loans, net of unearned income, were flat, decreasing $37.37 million or less than 1% from year-end 2010 mainly due to a $29.67 million or 1.74% decrease in residential real estate loans. In addition, consumer loans and construction and land development loans declined $6.44 million or 2.53% and $5.11 million or 1.09%, respectively. Total commercial, financial and agricultural loans increased $4.09 million or less than 1%. Within the commercial, financial and agricultural loans category, commercial real estate loans increased $13.69 million while commercial loans (not secured by real estate) decreased $9.60 million.
Other assets remained flat, decreasing $2.63 million or less than 1% from year-end 2010 due mainly to decreases in prepaid FDIC assessments of $2.00 million due to payments of previously accrued insurance premiums, fair value of derivatives of $574 thousand, and core deposit intangibles of $383 thousand due to amortization. Partially offsetting these decreases from year-end 2010 was an increase of $1.19 million in cash surrender values of bank-owned life insurance policies.
The decrease in interest-bearing deposits was due mainly to a decrease of $88.89 million or 30.63% in interest-bearing checking deposits, a $65.47 million or 3.88% decrease of interest-bearing money market accounts (MMDAs), and a $46.06 million or 4.01% decrease of time deposits under $100,000. The $88.89 million decrease in interest-bearing checking deposits is mainly due to declines in state and municipal interest-bearing checking accounts of $47.64 million, personal interest-bearing checking accounts of $21.05 million, and commercial interest-bearing checking accounts of $20.19 million. The $65.47 million decrease in interest-bearing MMDAs is due to a $45.33 million or 43.12% and a $29.45 million or 5.55% decline in public funds MMDAs and commercial MMDAs, respectively. The $46.06 million decrease in time deposits under $100,000 is the result of fixed rate certificate of deposits (CDs) declining $32.41 million, variable rate CDs decreasing $9.50 million, and Certificate of Deposit Account Registry Service (CDARS)
Stocks Discussed: UBSI,