What are United Bankshares Inc's Business Segments?
Commercial Loans
The commercial loan portfolio consists of loans to corporate borrowers primarily
in small to mid-size industrial and commercial companies, as well as automobile
dealers, service, retail and wholesale merchants. Collateral securing these
loans includes equipment, machinery, inventory, receivables, vehicles and commercial
real estate. Commercial loans are considered to contain a higher level of risk
than other loan types although care is taken to minimize these risks. Numerous
risk factors impact this portfolio including industry specific risks such as
economy, new technology, labor rates and cyclicality, as well as customer specific
factors, such as cash flow, financial structure, operating controls and asset
quality. United diversifies risk within this portfolio by closely monitoring
industry concentrations and portfolios to ensure that it does not exceed established
lending guidelines. Diversification is intended to limit the risk of loss from
any single unexpected economic event or trend. Underwriting standards require
a comprehensive credit analysis and independent evaluation of virtually all
larger balance commercial loans by the loan committee prior to approval.
Real Estate Loans
Commercial real estate loans consist of commercial mortgages, which generally
are secured by nonresidential and multi-family residential properties. Also
included in this portfolio are loans that are secured by owner-occupied real
estate, but made for purposes other than the construction or purchase of real
estate. Commercial real estate loans are to many of the same customers and carry
similar industry risks as the commercial loan portfolio. Real estate mortgage
loans to consumers are secured primarily by a first lien deed of trust. These
loans are traditional one-to-four family residential mortgages. The loans generally
do not exceed an 80% loan to value ratio at the loan origination date and most
are at a variable rate of interest. These loans are considered to be of normal
risk. Also included in the category of real estate mortgage loans are home equity
loans.
Consumer Loans
Consumer loans are secured by automobiles, boats, recreational vehicles, and
other personal property. Personal loans, student loans and unsecured credit
card receivables are also included as consumer loans. United monitors the risk
associated with these types of loans by monitoring such factors as portfolio
growth, lending policies and economic conditions. Underwriting standards are
continually evaluated and modified based upon these factors.
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