CHARLESTON — United Bankshares Inc. reported record revenue of $379.6 million in 2022 compared to $367.7 million in 2021.
Diluted earnings per share were $2.80 and 2021 diluted earnings per share were $2.83.
In the fourth quarter of 2022, earnings were $99.8 million, or $0.74 per diluted share, compared to earnings in the third quarter of $102.6 million, or $0.76 per diluted share.
“With a strong fourth quarter, 2022 will end as one of the best years in our long history.” United Chief Executive Officer Richard M. Adams Jr. said: “Record revenue, record loan growth and one of the highest total shareholder returns in the industry underline this year’s results. Our disciplined expense management and conservative credit culture position us well for success.”
2022 results show returns on average assets, average shareholders’ equity, and average tangible shareholders’ equity (non-GAAP measures) of 1.31%, 8.25%, and 14.11%, respectively, compared to average assets, average shareholders’ equity, and average tangible shareholders’ equity (non-GAAP measures) of Return on average tangible shareholders’ equity was 1.35%. , at 8.30% and 14.18% respectively in 2021. Q3 2022 Assets, Average Equity and Average Tangible Equity are 1.41%, 8.96% and 15.46% respectively.
Record net interest of $249.4 million and $896.4 million in Q4 2022 and 2022, respectively, driven by strong loan growth and net interest margin expansion delivered during the quarter and full year Income stood out. Annual loan growth, excluding Paycheck Protection Program loans, was 18% and 16% for the fourth quarter and year 2022, respectively.
Loan loss reserves for the fourth quarter of 2022 were $16.4 million, an increase of $8.7 million from the third quarter. This was primarily due to the increase in loans and the impact of reasonable and supportable forecasts of future macroeconomic conditions. The reserve charge for unfunded loan commitments in the fourth quarter was $6.5 million compared to net income of $2.9 million in the third quarter. The change was primarily due to an increase in outstanding loan commitment balances. The full-year loan loss reserve was $18.8 million compared to 2021 net income of $24 million.
Fourth quarter 2022 net interest income increased $8.8 million, or 4%, from the third quarter. Tax equivalent net interest income, a non-GAAP measure that adjusts for tax benefits on income from certain loans and investments in the fourth quarter of 2022, also increased $8.8 million, or 4%, from the third quarter. The increase in net interest income and tax-equivalent net interest income was primarily due to higher market interest rates, an increase in organic loans and a shift in asset mix towards higher-earning assets. was due to an increase in This increase in net interest income and tax equivalent net interest income was partially offset by higher interest expense primarily due to the resetting of deposit rates and higher average long-term borrowing balances. Additionally, PPP loan fee income decreased on a consolidated quarterly basis.
The $304 million, or 1%, increase in average earning assets from Q3 2022 was driven by an increase of $689.2 million in average net loans and loans held-for-sale, Partially offset by a $202.9 million decline in securities. Also, short-term investments he decreased by $182.3 million.
Average long-term debt increased $633 million from Q3 2022. Net PPP loan fee income decreased $1.3 million to $342,000 in the fourth quarter of 2022.
Loan loss reserves were $16.4 million in the fourth quarter of 2022 compared with $7.7 million in the third quarter of 2022. The increase was primarily due to higher loans and the impact of reasonable and supportable projections of future macroeconomic conditions.
Non-interest income in the fourth quarter of 2022 decreased $1.9 million, or 6%, from the third quarter primarily due to a $1.8 million decrease in income from mortgage business. This was primarily due to lower mortgage origination and sales volumes and lower margins on loans sold in the secondary market.
Income tax expense for the fourth quarter of 2022 was $26.6 million, compared with $25.9 million for the third quarter. This was due to higher effective tax rates partially offset by lower earnings. United Airlines’ effective tax rate was 21.1% and 20.2% for the fourth and third quarters of 2022, respectively.
Earnings for the fourth quarter of 2022 were $99.8 million, or $0.74 per diluted share, compared with $73.9 million, or $0.56 per diluted share, for the fourth quarter of 2021. United completed its acquisition of Community Bankers Trust his Corporation on December 3, 2021. The fourth quarter of 2021 included merger-related charges related to the acquisition of Community Bankers Trust of $20.4 million.
Net interest income in Q4 2022 increased by $65.7 million, or 36%, from Q4 2021. Q4 2022 tax equivalent net interest income is the same as the previous year. The increase was primarily due to higher market interest rates on earning assets, an increase in average earning assets due to the acquisition of Community Bankers Trust, an increase in organic loans and a shift in asset mix towards higher earning assets. These increases were partially offset by higher interest expense primarily due to resetting deposit rates, lower PPP loan fee income and lower acquired loan accretion income.
Average earning assets in Q4 2022 increased $806.8 million, or 3%, from Q4 2021. A $2.9 billion decrease in average short-term investments. Net PPP loan fee income for the fourth quarter of 2022 and 2021 was $342,000 and $5 million, respectively.
Non-interest revenue in Q4 2022 was $30.9 million, down $23.2 million, or 43%, from Q4 2021. The decrease was driven by a $22.7 million decrease in income from mortgage banking primarily due to lower mortgage loans. Lower margins on origination and sales volumes and loans sold in the secondary market.
Noninterest expense was $137.5 million in the fourth quarter of 2022, down $14.3 million, or 9%, from the fourth quarter of 2021. This was largely due to his $14 million decrease in employee compensation and $3.4 million decrease in data processing costs partially offset by increases. $2.1 million for other noninterest expenses. The decrease in employee compensation was primarily due to lower employee fees and incentives related to our mortgage banking business and the impact of $2.5 million of merger-related charges recognized in the fourth quarter of 2021. Data processing costs in Q4 2021 included $3.5 million. Merger-related costs related to the acquisition of Community Bankers Trust. The increase in noninterest and other expenses was primarily due to a $1.8 million increase in charitable contributions from the fourth quarter of 2021 and higher certain general offset by a partial recovery of accruals related to litigation matters. Customers settled in Q4 2022.
Income tax expense for the fourth quarter of 2022 was $26.6 million, compared to $19.5 million for the fourth quarter of 2021. The increase was primarily due to higher revenues and a slightly higher effective tax rate. United Airlines’ effective tax rate was 21.1% in Q4 2022 and 20.9% in Q4 2021.
Tax equivalent net interest income for 2022 increased by $153.9 million, or 21%, from 2021. Increase in average earning assets due to the acquisition of Community Bankers Trust, an increase in organic loans, and a change in the asset mix to high-earning assets. These increases were partially offset by higher interest expense primarily due to resetting deposit rates, lower PPP loan fee income and lower acquired loan accretion income.
Non-interest income in 2022 was $153.3 million, down $124.9 million, or 45%, from 2021. The decrease was primarily due to a $129 million decrease in revenues from mortgage banking operations due to lower mortgage origination and sales volumes and lower margins. For loans sold on the secondary market.
Noninterest expense in 2022 was $555.1 million, down $26.9 million, or 5%, from 2021. He increased $15.4 million in other noninterest expenses. Employee benefits decreased primarily due to changes in deferred compensation plans due to market movements. Lower mortgage loan servicing costs and impairments were primarily due to lower amortization of mortgage servicing rights reflecting slower servicing loan prepayment speeds and lower servicing loan balances Met. The increase in other noninterest expenses was primarily due to an increase in the amount of certain general operating expenses primarily related to consulting and legal expenses. Additionally, charitable giving in 2022 increased by $1.4 million from 2021.
The 2022 income tax expense was $96.2 million compared to $95.1 million in 2021. The increase in earnings was partially offset by a slightly lower effective tax rate.
United’s asset quality remains healthy. As of December 31, bad debts were $58.6 million, or 0.29% of loans and leases net of unearned income, compared to $90.8 million on December 31, 2021, or loans net of unearned income. and decreased from 0.50% for leases.
As of December 31, the provision for loan and lease losses was $234.7 million compared to $216 million, or 1.20% of loans and leases net of unearned income, or unearned income. It was 1.14% of loans and leases after deductions. December 31, 2021.
Between 2022 and 2021, United plans to acquire approximately 2.3 million shares at an average price of $34.69 per share and approximately 306,000 shares at an average price of $32.52 per share in 2022, based on previously announced plans. repurchased common stock, including 2021 years.
As of December 31, United’s consolidated assets were approximately $29.5 billion. United is the parent company of United Bank with approximately 250 offices in West Virginia, Ohio, Virginia, Maryland, Washington DC, North Carolina, South Carolina, Georgia and Pennsylvania. United stock trades on the NASDAQ Global Select Market under the quotation symbol. “UBSI.”
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