United Bankshares Inc. is reporting record earnings for 2022. 

Jim Strickland is the Market President for the Fayetteville/Lumberton region of United Bank, which  includes offices in Fayetteville, Hope Mills, Lumberton and Elizabethtown. 

“This week United Bank reported record earnings for 2022 of $379.6 million and posted strong loan growth. The bank continues to maintain sound liquidity and a robust capital position with lending continuing in all lines of business in light of what appears to be a continued economic slowdown…Locally our market posted exceptional growth in our commercial loan portfolio for 2022, and we continue to see strong loan demand. The bank and our market are well positioned to continue lending even in light of an uncertain economy” shared Strickland. 

Earnings per diluted share for the year of 2022 were $2.80 as compared to earnings per diluted

share of $2.83 for the year of 2021. Earnings for the fourth quarter of 2022 were $99.8 million, or $0.74 per diluted share, as compared to earnings of $102.6 million, or $0.76 per diluted share, for the third quarter of 2022. 

“We had substantial loan growth in our commercial loan portfolio. The most I've seen in 14 years of working for the company,” added Strickland.  

For the fourth quarter of 2022, United’s annualized returns on average assets, average equity and average tangible equity were 1.36 percent, 8.80 percent and 15.28 percent, respectively, compared to annualized returns on average assets, average equity and average tangible equity of 1.41 percent, 8.96 percent and 15.46 percent, respectively, for the third quarter of 2022.

“With strong performance in the fourth quarter, 2022 finishes as one of the best years in our company’s long history,” stated Richard M. Adams, Jr., United’s Chief Executive Officer, in a press release. “Record earnings, record loan growth, and one of the best Total Shareholder Returns in the industry highlight the year’s results. Looking ahead to 2023, our strong profitability, robust capital, disciplined expense control, and conservative credit culture have us well-positioned for success.”

The fourth quarter and year of 2022 were highlighted by record net interest income of $249.4 million and $896.4 million, respectively, driven by strong loan growth and net interest margin expansion achieved during the quarter and throughout the year of 2022.

The provision for credit losses for the fourth quarter of 2022 was $16.4 million, an increase of $8.7 million from the third quarter of 2022, primarily due to loan growth and the impact of reasonable and supportable forecasts of future macroeconomic conditions. 

The expense for the reserve for unfunded loan commitments for the fourth quarter of 2022 was $6.5 million as compared to a net benefit of $2.9 million for the third quarter of 2022. The change was primarily due to an increase in the outstanding balance of loan commitments. The provision for credit losses was $18.8 million for the year of 2022 as compared to a net benefit of $24.0 million for the year of 2021.

Current credit quality metrics remain strong. Net charge-offs remain historically low and the ratio of annualized net charge-offs as a percentage of average loans and leases, net of unearned income was 0.02 percent for the fourth quarter of 2022. Non-performing loans as a percentage of loans and leases, net of unearned income was a low 0.29 percent at December 31, 2022.

Additional details about the company’s performance can be found on their corporate website www.ubsi-inc.com.