(RTTNews) -  United Bankshares, Inc. (UBSI: News ) Monday reported a decline in net profit for the third quarter, reflecting higher provision for credit losses. On a per share basis, earnings missed Street estimates by a penny. United Bankshares' shares are currently trading up nearly 5% on the Nasdaq.

For the third quarter, the company's net income was $17.40 million or $0.40 per share compared to $19.59 million or $0.45 per share in the prior-year period.

On an average, seven analysts polled by Thomson Reuters expected United Bankshares to earn $0.41 per share for the quarter. Analysts' estimates typically exclude special items.

Net interest income for the period slipped to $61.79 million from $64.14 million in the third quarter of fiscal 2008.

Non-interest income was $14.52 million as against $10.33 million a year ago. Non-interest income included non-cash before-tax other-than-temporary impairment charges of $2.8 million on certain investment securities.

Excluding results of other-than-temporary impairment charges as well as net gains and losses from sales and calls of investment securities, non-interest income would have fallen $2.1 million or 11%. The company attributed the decrease in the quarter's non-interest income to a decline of $1.4 million in revenues from trust and brokerage services due to a decrease in value of trust assets under management.

Analysts expected United Bankshares to generate revenues of $83.10 million during the quarter.
The company stated that non-interest expense for the period was $43.7 million, up $2.0 million or 5% from the third quarter of 2008. Equipment expense including other real estate owned, or OREO, rose $1.3 million mainly due to increased losses from a decline in fair values of OREO properties.

Provision for credit losses for the quarter rose to $8.07 million from $6.5 million in the comparable period prior year, reflecting increases in nonperforming assets, loan charge-offs and inherent risk factors as an impact of the current economic environment.

At September 2009, total deposits of United Bankshares were $6.02 billion compared with $5.50 billion a year ago. Loans, net of unearned income, at the end of the period slumped to $5.79 billion from $5.91 billion in the last-year period. Nonperforming loans were $72.9 million or 1.26% of loans, net of unearned income, compared to $49.03 million a year ago.

Income tax expense for the third quarter was $7.2 million as compared to $6.7 million in 2008. During the quarter, the company said it reduced its income tax reserve by $568 thousand due to expiration of statute of limitations for examinations of certain years as compared to $1.4 million in the previous year. As an impact of the adjustments, effective tax rate for quarter was 29.19%, up from 25.60% in the year-ago quarter.

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