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United Bankshares Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 2, 2011 03:15PM
United Bankshares Inc. (UBSI) filed Quarterly Report for the period ended 2011-06-30. United Bankshares Inc. has a market cap of $1.04 billion; its shares were traded at around $23.91 with a P/E ratio of 14.5 and P/S ratio of 2.7. The dividend yield of United Bankshares Inc. stocks is 5%.
Highlight of Business Operations:
Uniteds total assets as of June 30, 2011 were $7.13 billion which was a decrease of $21.74 million or less than 1% from December 31, 2010. The decrease was primarily the result of a $52.87 million or 6.65% decrease in investment securities and a $5.81 million or 84.61% decrease in loans held for sale. In addition, portfolio loans decreased $8.23 million or less than 1% from year-end 2010. Partially offsetting these decreases in total assets was an increase in cash and cash equivalents of $46.68 million or 10.12%. The decrease in total assets is reflected in a corresponding decrease in total liabilities of $32.97 million or less than 1% from year-end 2010. The decrease in total liabilities was due mainly to decreases of $42.17 million or 7.27% and $5.84 million or 8.65% in borrowings and accrued expenses and other liabilities, respectively, while deposits remained flat, increasing $15.00 million or less than 1% from year-end 2010. Shareholders equity increased $11.23 million or 1.42% from year-end 2010.
Cash and cash equivalents at June 30, 2011 increased $46.68 million or 10.12% from year-end 2010. Of this total increase, interest-bearing deposits with other banks increased $39.86 million or 11.54% as United placed its excess cash in an interest-bearing account with the Federal Reserve while cash and due from banks increased $6.81 million or 5.90% and federal funds sold increased $15 thousand or 2.09%. During the first six months of 2011, net cash of $55.12 million and $44.27 million was provided by operating activities and investing activities, respectively. Net cash of $52.71 million was used 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 six months of 2011 and 2010.
Total investment securities at June 30, 2011 decreased $52.87 million or 6.65% from year-end 2010. Securities available for sale decreased $44.94 million or 6.88%. This change in securities available for sale reflects $709.79 million in sales, maturities and calls of securities, $670.18 million in purchases, and an $874 thousand decrease in market value. Securities held to maturity decreased $3.34 million or 4.98% from year-end 2010 due to calls and maturities of securities. Other investment securities decreased $4.59 million or 6.17% from year-end 2010.
Loans held for sale decreased $5.81 million or 84.61% as loan sales exceeded loan originations in the secondary market during the first six months of 2011. Portfolio loans, net of unearned income, were flat, decreasing $8.23 million or less than 1% from year-end 2010 mainly due to a $38.02 million or 8.07% decrease in construction and land development loans and a $34.91 million or 2.05% decrease in residential real estate loans. Partially offsetting these decreases was a $59.40 million or 2.09% increase in total commercial, financial and agricultural loans. Within the commercial, financial and agricultural loans category, commercial real estate loans increased $46.10 million while commercial loans (not secured by real estate) increased $13.30 million.
The decrease in interest-bearing deposits was due mainly to an $80.59 million or 7.02% decrease of time deposits under $100,000, an $80.28 million or 4.75% decrease of interest-bearing money market accounts (MMDAs), and a decrease of $67.15 million or 23.14% in interest-bearing checking deposits. In addition, time deposits over $100,000 decreased $14.90 million or 1.50%. The $80.59 million decrease in time deposits under $100,000 is the result of fixed rate certificate of deposits (CDs) declining $54.71 million, variable rate CDs decreasing $19.54 million, and Certificate of Deposit Account Registry Service (CDARS) balances declining $6.46 million. The $80.28 million decrease in interest-bearing MMDAs is due to a $60.49 million and a $34.96 million decline in public funds MMDAs and personal MMDAs, respectively. The $67.15 million decrease in interest-bearing checking deposits is mainly due to declines in state and municipal interest-bearing checking accounts of $35.87 million, personal interest-bearing checking accounts of $14.76 million, and commercial interest-bearing checking accounts of $16.52 million. The $14.90 million decrease in time deposits over $100,000 was the result of declines in fixed and variable rate CDs of $28.74 million and
$5.72 million, respectively. Partially offsetting these decreases in interest-bearing deposits were increases in regular savings balances of $22.74 million, CDARS balances over $100,000 of $18.79 million, and commercial MMDAs of $15.18 million.
Stocks Discussed: UBSI,