Business
United Bankshares, Inc. Announces Earnings for the Second Quarter and First Half of 2020
WASHINGTON & CHARLESTON, W. Va.--(BUSINESS WIRE)-- United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today reported earnings for the second quarter and the
About this update from United Bankshares, Inc.
[{"type":"text","content":" WASHINGTON & CHARLESTON, W. Va.--(BUSINESS WIRE)--\nUnited Bankshares, Inc. (NASDAQ: UBSI) (“United”), today reported earnings for the second quarter and the first half of 2020. Earnings for the second quarter of 2020 were $52.7 million as compared to earnings of $67.2 million for the second quarter of 2019. Earnings for the first half of 2020 were $92.9 million as compared to earnings of $130.8 million for the first half of 2019. The lower amount of net income in 2020 was driven primarily by significant merger-related expenses from the Carolina Financial Corporation (“Carolina Financial”) acquisition and a higher provision for loan losses resulting from an adverse future macroeconomic forecast as a result of the coronavirus (“COVID-19”) pandemic under the new Current Expected Credit Loss (“CECL”) accounting standard. The higher amount of provision expense resulting from COVID-19 is an industry-wide issue affecting bank earnings nationwide. Diluted earnings per share were $0.44 and $0.84 for the second quarter and first half of 2020, respectively, as compared to diluted earnings per share of $0.66 and $1.28 for the second quarter and first half of 2019, respectively.\n\n\nSecond quarter of 2020 results produced an annualized return on average assets of 0.87%, an annualized return on average equity of 5.40% and an annualized return on average tangible equity of 9.58%, respectively. For the first half of 2020, United’s annualized return on average assets was 0.85% while the annualized return on average equity was 5.16% and the annualized return on average tangible equity was 9.28%. United’s annualized returns on average assets, average equity and average tangible equity were 1.38%, 8.12% and 14.90%, respectively, for the second quarter of 2019 while the annualized returns on average assets, average equity and average tangible equity were 1.36%, 8.00% and 14.78%, respectively, for the first half of 2019.\n\n\n“During the second quarter of 2020, we successfully completed the acquisition of Carolina Financial Corporation, headquartered in Charleston, South Carolina, which broadens our footprint in the Southeast,” stated Richard M. Adams, United’s Chairman of the Board and Chief Executive Officer. “Core earnings for the second quarter of 2020 continued to be good despite the current economic environment and significant merger expense...