United Bankshares Inc's Business Segments

United Bankshares, Inc. is a West Virginia corporation registered as a bank holding company pursuant to the Bank Holding Company Act of 1956, as amended. United was incorporated on March 26, 1982, organized on September 9, 1982, and began conducting business on May 1, 1984 with the acquisition of three wholly-owned subsidiaries. Since its formation in 1982, United has acquired twenty-nine banking institutions including its recent acquisition of Virginia Commerce Bancorp, Inc. which consummated after the close of business on January 31, 2014. United has two banking subsidiaries (the Banking Subsidiaries) “doing business” under the name of United Bank, one operating under the laws of West Virginia referred to as United Bank (WV) and the other operating under the laws of Virginia referred to as United Bank (VA). United’s Banking Subsidiaries offer a full range of commercial and retail banking services and products. United also owns nonbank subsidiaries which engage in other community banking services such as asset management, real property title insurance, financial planning, and brokerage services.

United Bankshares Inc. is a diversified financial institution that offers a comprehensive range of banking products and services to meet the needs of both individual and corporate clients. The banks activities can be extensively categorized into different segments, including commercial loans, real estate loans, and consumer loans, among others.

Commercial Loans

United Bankshares Inc. provides a robust portfolio of commercial loans designed to cater primarily to small and mid-sized industrial and commercial enterprises. This segment includes loans extended to various sectors, such as:

- Automobile Dealers: Financing to facilitate the purchase of vehicles, inventory, and operational needs.
- Service Industries: Loans aimed at service-oriented businesses to support daily operations and expansion.
- Retail and Wholesale Merchants: Providing funding for inventory purchases and operational costs.

Collateral and Risk Management

The commercial loans are typically secured by a range of collateral, including:

- Equipment and Machinery: Loans backed by tangible assets directly related to business operations.
- Inventory: Goods held for sale or use in production.
- Receivables: Loans supported by accounts receivable.
- Vehicles: Secured by business-owned transportation assets.
- Commercial Real Estate: Mortgages on properties utilized for commercial purposes.

The bank acknowledges that commercial loans carry a higher level of risk compared to other loan types. To mitigate potential risks, United Bankshares employs several strategies:

- Risk Factor Assessment: A thorough evaluation of industry-specific risks such as economic conditions, technological advancements, labor rates, and industry cyclicality.
- Customer Analysis: Understanding customer-specific elements such as cash flow, financial structure, operational controls, and asset quality.
- Portfolio Diversification: Regular monitoring of industry concentrations and adherence to established lending guidelines to minimize exposure to single economic events or trends.

The underwriting process for commercial loans is stringent, requiring comprehensive credit analysis and an independent evaluation by a loan committee, especially for larger loan transactions.

Real Estate Loans

The real estate loan segment encompasses both commercial and residential mortgage loans. Key features include:

- Commercial Real Estate Loans: These loans are secured by nonresidential properties, including office buildings, industrial warehouses, and multi-family residences. They can also include loans for owner-occupied real estate where the funds are utilized for purposes other than purchasing or constructing real estate.

- Consumer Real Estate Loans: Primarily focus on traditional one-to-four family residential mortgages, secured by first lien deeds of trust. These mortgages typically adhere to an 80% loan-to-value ratio at origination, with most loans bearing variable interest rates. This segment also includes home equity loans, facilitating homeowners access to funds using the equity they have built in their properties.

Consumer Loans

United Bankshares offers a range of consumer loans catering to personal borrowing needs, which includes:

- Secured Loans: Financing for the purchase of vehicles, boats, recreational vehicles, and other personal property.
- Unsecured Loans: Personal loans, student loans, and unsecured credit card receivables fall under this category.

Risk Monitoring

United Bankshares actively manages the associated risks in their consumer loan portfolio. This process involves:

- Portfolio Growth Analysis: Tracking the expansion of consumer lending to maintain a healthy balance.
- Lending Policy Review: Continually assessing and updating lending policies based on market conditions and economic factors.
- Economic Condition Monitoring: Keeping an eye on macroeconomic trends that may affect borrowers’ ability to repay loans.

The bank employs robust underwriting standards that are regularly evaluated to ensure they align with current market conditions and risk factors, thereby safeguarding both the bank and its clients.

Conclusion

In summary, United Bankshares Inc. offers a well-structured suite of products across commercial, real estate, and consumer loan segments, equipped with careful risk management strategies, thorough underwriting processes, and a commitment to service that caters to the diverse financial needs of its individual and corporate clientele. This extensive catalog of products and services positions United Bankshares as a reliable partner in the financial landscape.