United Bankshares, Inc. (NASDAQ:UBSI) is included among the Best Dividend Stocks for a Dividend Champions List. Dividend Champions Spotlight: United Bankshares’ (UBSI) Record of Reliability Photo by Annie Spratt on Unsplash United Bankshares, Inc. (NASDAQ:UBSI) has grown into a sizable regional bank holding company. At its core, it still does the usual banking work, which includes making loans in commercial, real estate, and consumer markets, while also handling deposits, trust services, brokerage, and ...

Core Viewpoint - United Bankshares (UBSI) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system focuses on changes in earnings estimates as a key determinant of stock ratings, with a strong correlation between earnings estimate revisions and near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to assess a company's fair value, leading to stock price movements based on their buying or selling actions [4]. Recent Performance and Outlook - For the fiscal year ending December 2025, United Bankshares is expected to earn $3.14 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 5.9% over the past three months [8]. - The upgrade to Zacks Rank 2 places United Bankshares in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The system maintains a balanced distribution of ratings, ensuring that only the top 5% of stocks receive a "Strong Buy" rating, while the next 15% receive a "Buy" rating [9].

Core Viewpoint - United Bankshares (UBSI) is experiencing solid improvement in earnings estimates, which is likely to positively impact its stock price [1][2]. Earnings Estimates - Analysts are increasingly optimistic about the earnings prospects for United Bankshares, leading to higher earnings estimates that should reflect in the stock price [2]. - The current quarter's earnings estimate is $0.82 per share, representing a 17.1% increase from the previous year [6]. - For the full year, the expected earnings are $3.14 per share, indicating a 14.2% increase from the prior year [7]. Estimate Revisions - Over the past 30 days, the Zacks Consensus Estimate for the current quarter has risen by 5.58%, with three estimates moving higher and no negative revisions [6]. - The consensus estimate for the full year has increased by 5.86%, with four estimates revised upward and no negative revisions [8]. Zacks Rank - United Bankshares currently holds a Zacks Rank 2 (Buy), reflecting strong agreement among analysts in revising earnings estimates upward [9]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [9]. Stock Performance - United Bankshares shares have increased by 7% over the past four weeks, indicating investor confidence in the company's earnings growth prospects [10].

Group 1 - United Bankshares has shown a recovery with an approximate 11% return since the beginning of the year [1] - The investment strategy focuses on a long-term, buy-and-hold approach, emphasizing stocks that can deliver sustainable high-quality earnings [1] Group 2 - The article does not provide any specific financial metrics or detailed analysis of United Bankshares' performance beyond the mentioned return [1]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements for the six months ended June 30, 2025, reflect significant growth in assets, loans, and deposits, primarily due to the Piedmont Bancorp acquisition, leading to increased net income - Financial statements are prepared under GAAP for interim reporting and should be read with the 2024 Annual Report on Form 10-K[21](index=21&type=chunk) - The company's business activities are confined to a single reportable segment: community banking through its subsidiary, United Bank[23](index=23&type=chunk) [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets grew 9.2% to **$32.78 billion**, primarily due to the Piedmont acquisition, significantly increasing net loans, goodwill, deposits, and shareholders' equity Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$32,783,363** | **$30,023,545** | | Net loans and leases | $23,742,260 | $21,401,649 | | Goodwill | $2,018,910 | $1,888,889 | | **Total Liabilities** | **$27,418,822** | **$25,030,322** | | Total deposits | $26,335,874 | $23,961,859 | | **Total Shareholders' Equity** | **$5,364,541** | **$4,993,223** | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) Q2 2025 net income increased to **$120.7 million** ($0.85 diluted EPS), driven by a **21.6% rise in net interest income**, with six-month net income reaching **$205.0 million** despite higher provisions and expenses from the Piedmont acquisition Key Income Statement Data (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $274,537 | $225,715 | $534,592 | $448,204 | | Provision for credit losses | $5,889 | $5,779 | $34,992 | $11,519 | | **Net Income** | **$120,721** | **$96,507** | **$205,027** | **$183,321** | | **Diluted EPS** | **$0.85** | **$0.71** | **$1.44** | **$1.35** | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, cash and cash equivalents increased by **$22.4 million**, with operating activities providing cash, investing activities using cash primarily for loans, and financing activities providing cash from deposits Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $209,346 | $185,556 | | Net Cash (Used in)/Provided by Investing Activities | ($273,819) | $220,109 | | Net Cash Provided by/(Used in) Financing Activities | $86,921 | ($145,747) | | **Increase in Cash and Cash Equivalents** | **$22,448** | **$259,918** | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail financial statement support, including accounting standards, investment and loan portfolios, credit quality, and the **$281.0 million** Piedmont acquisition's impact on various accounts - On January 10, 2025, United acquired Piedmont Bancorp, Inc. for **$281.0 million**, adding **$2.36 billion** in assets, **$2.08 billion** in loans, and **$2.11 billion** in deposits, with preliminary goodwill of **$130.0 million**[36](index=36&type=chunk)[42](index=42&type=chunk)[47](index=47&type=chunk) - The allowance for loan and lease losses increased by **$36.1 million** from year-end 2024, including an **$18.7 million** provision for non-PCD loans from the Piedmont acquisition[42](index=42&type=chunk)[118](index=118&type=chunk) - The company had **$6.25 billion** in loan commitments and **$157.8 million** in commercial and standby letters of credit outstanding as of June 30, 2025[141](index=141&type=chunk)[142](index=142&type=chunk) - Shareholders approved the 2025 Equity Incentive Plan (EIP), replacing the 2020 plan, authorizing **3,000,000 shares** for issuance[198](index=198&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=59&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses significant increases in assets, loans, and deposits, primarily from the Piedmont acquisition, driving Q2 2025 net income to **$120.7 million** and strengthening liquidity and capital positions - The acquisition of Piedmont Bancorp, Inc. on January 10, 2025, added approximately **$2.4 billion** in assets and is a primary driver of financial changes in 2025[236](index=236&type=chunk) - Management highlights the use of non-GAAP measures like tax-equivalent net interest income and return on average tangible equity for additional evaluation information[241](index=241&type=chunk)[242](index=242&type=chunk) [Financial Condition](index=62&type=section&id=Financial%20Condition) Total assets grew by **$2.76 billion** (9.2%) to **$32.78 billion** in H1 2025, primarily due to the Piedmont acquisition, significantly increasing portfolio loans, deposits, and shareholders' equity Change in Loan Portfolio (in thousands) | Loan Category | June 30, 2025 | Dec 31, 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Commercial, financial, and agricultural | $13,698,632 | $11,881,005 | $1,817,627 | 15.30% | | Residential real estate | $5,852,212 | $5,507,384 | $344,828 | 6.26% | | Construction & land development | $3,741,200 | $3,509,034 | $232,166 | 6.62% | | **Total Loans, net of unearned income** | **$24,050,222** | **$21,673,493** | **$2,376,729** | **10.97%** | Change in Deposit Portfolio (in thousands) | Deposit Category | June 30, 2025 | Dec 31, 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Demand deposits (Noninterest-bearing) | $6,627,265 | $6,135,413 | $491,852 | 8.02% | | Interest-bearing deposits | $19,708,609 | $17,826,446 | $1,882,163 | 10.56% | | **Total deposits** | **$26,335,874** | **$23,961,859** | **$2,374,015** | **9.91%** | [Results of Operations](index=67&type=section&id=Results%20of%20Operations) Q2 2025 net income increased **25.1%** YoY to **$120.7 million**, driven by a **21.6%** rise in net interest income, with return on average tangible equity improving to **14.67%**, despite higher credit loss provisions from the Piedmont acquisition Quarterly Performance Summary | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :--- | :--- | :--- | :--- | | Net Income (in millions) | $120.7 | $96.5 | $84.3 | | Diluted EPS | $0.85 | $0.71 | $0.59 | | Return on Average Assets (Ann.) | 1.49% | 1.32% | 1.06% | | Return on Average Tangible Equity (Ann.) | 14.67% | 13.12% | 10.61% | - Acquisition-related costs for the Piedmont merger were **$1.32 million** for Q2 2025 and **$31.36 million** for H1 2025, including a significant provision for credit losses on purchased loans[281](index=281&type=chunk) [Liquidity and Capital Resources](index=79&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity and a strong capital position, with all regulatory capital ratios exceeding 'well-capitalized' thresholds, including a **13.42%** Common Equity Tier 1 ratio, supported by substantial unused borrowing capacity Regulatory Capital Ratios (as of June 30, 2025) | Ratio | United's Ratio | Well-Capitalized Requirement | | :--- | :--- | :--- | | Common Equity Tier 1 Capital | 13.42% | 6.5% | | Tier 1 Capital | 13.42% | 8.0% | | Total Risk-Based Capital | 15.83% | 10.0% | | Leverage Ratio | 11.33% | 5.0% | - During H1 2025, United repurchased **1,548,827 shares** of its common stock at an average price of **$33.81 per share**[355](index=355&type=chunk) - The Board of Directors declared a cash dividend of **$0.37 per share** for Q2 2025, totaling **$0.74** for the first six months of the year[357](index=357&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=80&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate risk, managed by ALCO using earnings simulation to assess net interest income sensitivity and monitoring extension risk in its **$1.8 billion** mortgage-related securities portfolio Estimated NII Sensitivity to Interest Rate Changes (1-Year Horizon) | Change in Interest Rates (bps) | % Change in NII (June 30, 2025) | % Change in NII (Dec 31, 2024) | | :--- | :--- | :--- | | +200 | 3.43% | 2.82% | | +100 | 2.13% | 1.75% | | -100 | (0.36%) | 0.26% | | -200 | (0.61%) | 0.40% | - The company's mortgage-related securities portfolio is structured to have moderate extension risk, with a **+300 bps** rate shock scenario extending the average life of the fixed-rate CMO portfolio from **4.8 to 6.5 years**[370](index=370&type=chunk) [Controls and Procedures](index=82&type=section&id=Item%204.%20Controls%20and%20Procedures) As of June 30, 2025, the CEO and CFO concluded that disclosure controls and procedures are effective, with no material changes in internal control over financial reporting during Q2 2025 - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of the end of the period[376](index=376&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected or are reasonably likely to materially affect the company's internal controls[379](index=379&type=chunk) [PART II. OTHER INFORMATION](index=84&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=84&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings arising from normal business operations, which management believes will not materially affect United's financial position - United is involved in various legal proceedings in the normal course of business, which management believes will be resolved with no material effect on the company's financial position[381](index=381&type=chunk) [Risk Factors](index=84&type=page&id=Item%201A.%20Risk%20Factors) This section refers readers to the comprehensive risk factors detailed in the company's Annual Report on Form 10-K for December 31, 2024, with no new or materially changed risks presented in this quarterly report - The report directs stakeholders to the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024, for a comprehensive understanding of potential risks[382](index=382&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=84&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, United repurchased **981,428 shares** of common stock at an average price of **$33.17 per share** under the publicly announced 2022 repurchase plan Share Repurchases for Quarter Ended June 30, 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 831,422 | $32.64 | | May 2025 | 6 | $32.86 | | June 2025 | 150,000 | $36.14 | | **Total** | **981,428** | **$33.17** | - The share repurchases were executed under the 2022 Plan, authorizing the repurchase of up to **4,750,000 shares**[384](index=384&type=chunk) [Other Information](index=85&type=section&id=Item%205.%20Other%20Information) During Q2 2025, no directors or executive officers adopted, modified, or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements - No directors or executive officers adopted, modified, or terminated any "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during the second quarter of 2025[388](index=388&type=chunk) [Exhibits](index=86&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including the Piedmont merger agreement, corporate governance documents, and CEO/CFO certifications required by Sarbanes-Oxley Act - Key exhibits include CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act, and the Interactive Data File (inline XBRL)[389](index=389&type=chunk)[390](index=390&type=chunk)

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Core Viewpoint - United Bankshares reported record results for Q2 2025, exceeding analyst expectations in both earnings and revenue, driven by successful acquisitions and improved performance metrics [1][2]. Financial Performance - GAAP earnings per share (EPS) reached $0.85, surpassing estimates of $0.76, and increased by 19.7% from $0.71 in Q2 2024 [2] - GAAP revenue was $306 million, exceeding the estimate of $298.8 million and up 35.6% from $225.7 million in Q2 2024 [2] - Net interest income rose to $274.5 million, a 22% increase year-over-year [2] - Return on average assets improved to 1.49%, up 0.17 percentage points from 1.32% in Q2 2024 [2] - Net interest margin expanded to 3.81%, an increase of 0.31 percentage points from 3.50% in Q2 2024 [2] Business Overview - United Bankshares operates as a commercial bank holding company, providing a range of banking services including loans and deposit services, with a focus on acquisitions to expand its market presence [3] - The company has completed 33 acquisitions, with the most recent being Piedmont Bancorp in January 2025, enhancing its footprint in the Mid-Atlantic and Southeast regions [3] Key Performance Drivers - The integration of Piedmont Bancorp significantly increased the customer base and average loans and deposits, contributing to a net loan portfolio growth of $2.45 billion year-over-year to $24.05 billion [5] - Commercial loans and leases grew from $15.89 billion in Q2 2024 to $18.48 billion in Q2 2025 [5] - Acquired loan accretion income contributed $11.8 million in Q2 2025, boosting the net interest margin [6] Credit Quality and Risk Management - Nonperforming loans decreased to 0.28% of total loans, while net charge-offs increased to 0.14% of average loans, indicating a return to typical loss levels post-pandemic [8] - The company set aside $5.9 million for potential loan losses, consistent with the prior year [9] Deposits and Expenses - Total deposits rose 14.2% year-over-year to $26.34 billion, with increases in both interest-bearing and noninterest-bearing accounts [10] - Noninterest expenses increased by 10% year-over-year, primarily due to staff and operational costs from acquisitions, but merger-related expenses decreased significantly [11] Shareholder Returns - The quarterly dividend was maintained at $0.37 per share, with a payout ratio below half of earnings, and share repurchase activity resumed with 981,000 shares bought back at an average price of $33.17 [12] Outlook - Management did not provide numeric guidance for the remainder of fiscal 2025 but highlighted ongoing momentum from acquisitions and disciplined expense management as key supports [13] - Investors should monitor the sustainability of margin expansion, deposit cost trends, and credit risk associated with commercial and real estate loans [14]

Core Insights - United Bankshares reported record net income and revenue for Q2 2025, with diluted EPS of $0.85, exceeding the consensus estimate of $0.76, and revenue of $306.0 million, surpassing the forecast of $298.8 million [1][2] Financial Performance - EPS (GAAP, Diluted) increased by 19.7% year-over-year from $0.71 to $0.85 [2] - Revenue (GAAP) rose by 19.6% year-over-year from $255.9 million to $306.0 million [2] - Net Interest Income grew by 21.6% year-over-year, reaching $274.5 million [2] - Net Interest Margin improved to 3.81%, up from 3.50% a year earlier [2] - Return on Average Tangible Equity (Non-GAAP) increased to 14.67%, up from 13.12% [2] Business Overview and Strategy - United Bankshares operates as a bank holding company, providing a range of financial services across the Mid-Atlantic and Southeast regions, with a growth model focused on acquisitions [3] - The company has completed 33 acquisitions since its formation, including recent acquisitions of Piedmont Bancorp, Community Bankers Trust, and Carolina Financial [3] Operational Highlights - The Piedmont Bancorp acquisition contributed significantly to the quarter's performance, adding approximately $2.4 billion in assets and increasing average net loans by $2.3 billion year-over-year [5][6] - Noninterest expense decreased by $5.6 million sequentially, reflecting reduced merger-related integration costs [6][8] - The efficiency ratio improved to 48.37%, indicating enhanced operational efficiency as revenue growth outpaced expense growth [8][11] Asset Quality and Lending - Non-performing loans stood at $68.3 million, representing 0.28% of loans, which is a modest increase from the previous year [9] - The total allowance for loan losses increased to $308.0 million, or 1.28% of loans, reflecting new loans from Piedmont and higher loss provisioning [9] Market Position and Future Outlook - Total deposits reached $26.34 billion as of June 30, 2025, up from $23.07 billion a year earlier [10] - The company is expanding into the Atlanta market to capture new commercial and retail clients despite rising competition [10] - Management expressed confidence in maintaining a positive trajectory into the second half of fiscal 2025, citing benefits from the Atlanta market entry and ongoing cost control [13]

Core Viewpoint - United Bankshares (UBSI) demonstrated strong financial performance in the quarter ended June 2025, with significant increases in revenue and earnings per share (EPS) compared to the previous year [1]. Financial Performance - Revenue for the quarter was reported at $306.79 million, reflecting a year-over-year increase of 19.5% [1]. - EPS was reported at $0.85, up from $0.71 in the same quarter last year [1]. - The revenue exceeded the Zacks Consensus Estimate of $298 million, resulting in a surprise of +2.95% [1]. - EPS also surpassed the consensus estimate of $0.77, with a surprise of +10.39% [1]. Key Metrics - Efficiency Ratio stood at 48.4%, better than the three-analyst average estimate of 50% [4]. - Average balance of earning assets was $28.95 billion, slightly below the estimated $29.18 billion [4]. - Net interest margin was reported at 3.8%, exceeding the average estimate of 3.7% [4]. - Net Charge-off as a percentage of average loans was 0.1%, matching the two-analyst average estimate [4]. - Income from mortgage banking operations was $2.6 million, below the average estimate of $3.28 million [4]. - Total Noninterest Income reached $31.46 million, surpassing the average estimate of $30.44 million [4]. - Income from bank-owned life insurance was $3.62 million, exceeding the estimated $2.94 million [4]. - Other income was reported at $2.1 million, slightly above the average estimate of $2.01 million [4]. - Fees from deposit services totaled $9.66 million, below the average estimate of $9.79 million [4]. - Other service charges, commissions, and fees were $1.15 million, above the average estimate of $1 million [4]. - Bankcard fees and merchant discounts reached $2.1 million, exceeding the estimated $1.89 million [4]. - Net Interest Income (Taxable Equivalent) was reported at $275.33 million, higher than the estimated $266.03 million [4]. Stock Performance - Shares of United Bankshares returned +2.2% over the past month, compared to the Zacks S&P 500 composite's +5.7% change [3]. - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3].

Core Viewpoint - United Bankshares (UBSI) reported quarterly earnings of $0.85 per share, exceeding the Zacks Consensus Estimate of $0.77 per share, and showing an increase from $0.71 per share a year ago, indicating a positive earnings surprise of +10.39% [1] Financial Performance - The company achieved revenues of $306.79 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.95%, compared to $256.8 million in the same quarter last year [2] - Over the last four quarters, United Bankshares has exceeded consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance and Outlook - United Bankshares shares have declined approximately 1.8% since the beginning of the year, while the S&P 500 has gained 8.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] Earnings Estimate Revisions - The trend for earnings estimate revisions for United Bankshares was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $0.78 on revenues of $302.68 million, and for the current fiscal year, it is $2.97 on revenues of $1.2 billion [7] Industry Context - The Zacks Industry Rank for Banks - Southeast is currently in the top 9% of over 250 Zacks industries, suggesting a favorable environment for the sector [8] - Another company in the same industry, First National Corp. (FXNC), is expected to report quarterly earnings of $0.49 per share, reflecting a year-over-year change of +2.1% [9]