United Bankshares' Profit Up Nearly 50% on Acquisition Gains

By Amilda Dymi July 29, 2014, 1:28 p.m. EDT 1 Min Read

Community banking

United Bankshares Earnings Boosted by Virginia Bank Acquisition

United Bankshares' (UBSI) earnings increased during the first quarter, with support from the completion of its Virginia Commerce Bancorp acquisition and sale of one of its own branches.

By Evan Nemeroff

April 30

United Bankshares, in Charleston, W.Va., reported an increase in second-quarter earnings, in part because of its acquisition of Virginia Commerce Bancorp in Arlington.

The $12 billion-asset company's net income rose 49.6% from the same quarter of last year, to $33.2 million, or 48 cents per share.

Net interest income rose 41.9% to $93.9 million, primarily because of a 40% increase in average earning assets from the Virginia Commerce acquisition. The net interest margin was 3.69%, up 4 basis points from a year earlier.

Noninterest income rose 0.2% to $19.1 million on higher fees from deposit services and trust and brokerage services.

United closed its acquisition of the $2.8 billion-asset Virginia Commerce on Jan. 31. United included Virginia Commerce's results from operations in its consolidated results for the second quarter.

Return on average assets was 1.13%, up from 1.07%. Deposits increased 33%, to $8.7 billion.

Amilda Dymi

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