A legal settlement and an investment loss weighed on United Bankshares (UBSI) in Charleston, W.Va., in the third quarter.
Earnings fell 3.5%, to $19.3 million, primarily because of a $3.3 million settlement of two consumer lawsuits, the $8.3 billion-asset company said Thursday. The suits alleged that its United Bank subsidiary assessed overdraft fees improperly. United Bankshares also recorded an impairment charge of $2.3 million on certain investment securities.
The earnings equaled $0.38 cents per share and fell 11.6% short of analysts' estimates.
United Bankshares recorded net interest income of $71.6 million, down 1.2% from a year earlier. Its net interest margin was 3.87%, unchanged from the third quarter of 2011. Noninterest income rose 52.3%, to $16.6 million. Noninterest expense rose 10.2%, to $53.8 million.
Commercial lending rose 7.1%, to $4.5 billion. Mortgage lending fell 3.9%, to $1.5 billion, while consumer loans decreased 8.1%, to $306 million. The provision for loan losses rose 10.4%, to $4.3 million. Chargeoffs rose 25%, to $4 million.
