PARKERSBURG - United Bankshares Inc. reported earnings for the third quarter and the first nine months of 2010. Earnings for the third quarter of 2010 were $17.3 million or 40 cents per diluted share while earnings for the first nine months of 2010 were $52.7 million or $1.21 per diluted share.
Third quarter of 2010 results produced a return on average assets of 0.91 percent and a return on average equity of 8.73 percent. For the first nine months of 2010, United's return on average assets was 0.93 percent while the return on average equity was 9.04 percent. These returns compare very favorably to United's most recently reported Federal Reserve peer group's average return assets of 0.35 percent and average return on equity of 2.09 percent for the first half of 2010.
United continues to be well-capitalized based upon regulatory guidelines. United's estimated risk-based capital ratio is 13.4 percent at Sept. 30 while its estimated Tier I capital and leverage ratios are 12.0 percent and 9.7 percent respectively. The regulatory requirements for a well-capilalized financial institution are a risk-based capital ratio of 10 percent a Tier I capital ratio of 6 percent and a leverage ratio of 5 percent.
"Considering the current economic environment, United's earnings continue to be strong with asset quality favorable to peers, " stated Richard M. Adams, United's chairman of the board and chief executive officer. "United also continues to be well-capitalized based upon regulatory guidelines."
The results for the third quarter and first nine months of 2010 included before-tax net gains of $132,000 and $2 million, respectively, on the sale of investment securities and noncash, before-tax, other-than temporary impairment charges of $1.9 million and $4.4 million respectively, on certain investment securities. In addition, the results for the third quarter and first nine months of 2010 included a positive tax adjustment of $430,000 due to the expiration of the statute of limitations for examinations of certain years.
Earnings for the third quarter of 2009 were $12.1 million or 28 cents per diluted share while earnings for the first nine months of 2009 were $49.9 million or $1.15 per diluted share. Results for the third quarter of 2009 included before-tax other-than-temporary impairment charges of $11 million on certain investment securities and a positive tax adjustment of $568,000 due to the expiration of the statute of limitations for examinations of certain years.