Core Viewpoint - United Bankshares (UBSI) shows a promising earnings outlook, with analysts raising their earnings estimates, indicating potential for continued stock momentum [1][2]. Estimate Revisions - The upward trend in earnings estimate revisions reflects growing analyst optimism about United Bankshares' earnings prospects, which is likely to influence its stock price positively [2]. - For the current quarter, the earnings estimate is $0.77 per share, an increase of +8.45% from the previous year [6]. - For the full year, the earnings estimate is $2.97 per share, representing a year-over-year increase of +8% [7]. - Over the past month, three estimates have been revised upward for the current year, contributing to a 5.1% increase in the consensus estimate [7]. Zacks Rank - United Bankshares currently holds a Zacks Rank 1 (Strong Buy), indicating strong potential for outperformance based on favorable estimate revisions [8]. - Stocks with a Zacks Rank 1 and 2 have historically outperformed the S&P 500 [8]. Stock Performance - The stock has gained 12.8% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [9].

Financial Position - United's total assets increased by $2.76 billion or 9.21% to $32.79 billion as of March 31, 2025, primarily due to the acquisition of Piedmont Bancorp, which added $2.30 billion in assets[243] - Total liabilities increased by $2.44 billion or 9.76%, driven mainly by a $2.40 billion or 10.03% rise in deposits[243] - Shareholders' equity grew by $321.23 million or 6.43% from year-end 2024, largely due to the Piedmont acquisition[243] - Total deposits increased by $2.40 billion or 10.03% to $26.36 billion, largely driven by the Piedmont acquisition which contributed $2.11 billion[262] - Total shareholders' equity increased by $321.23 million or 6.43% to $5.31 billion at March 31, 2025, primarily due to the Piedmont acquisition[337] Loan and Asset Management - Portfolio loans rose by $2.19 billion or 10.10%, while cash and cash equivalents increased by $317.94 million or 13.87%[243] - Loans held for sale decreased by $15.72 million or 35.43% to $28.64 million from year-end 2024, with loan sales exceeding originations[256] - Portfolio loans increased by $2.19 billion or 10.10% from year-end 2024, primarily due to the Piedmont acquisition, which added $2.01 billion in portfolio loans[257] - The allowance for loan and lease losses increased to $310.42 million as of March 31, 2025, compared to $271.84 million at December 31, 2024[302] - Total nonperforming assets decreased to $71,250 as of March 31, 2025, from $73,727 at December 31, 2024[301] Income and Expenses - Net income for Q1 2025 was $84.31 million, a decrease of 2.89% from $86.81 million in Q1 2024, with diluted earnings per share at $0.59 compared to $0.64 in Q1 2024[274] - Net interest income increased by $37.57 million, or 16.88%, to $260.06 million in Q1 2025, driven by a $34.47 million increase in interest income and a $3.10 million decrease in interest expense compared to Q1 2024[278] - Noninterest income decreased by $2.66 million, or 8.25%, to $29.55 million in Q1 2025, mainly due to lower mortgage banking activity[280] - Noninterest expense increased by $12.83 million, or 9.12%, to $153.57 million in Q1 2025, largely due to $11.31 million in merger-related expenses from the Piedmont acquisition[281] Credit Losses and Provisions - The provision for credit losses rose to $29.10 million in Q1 2025, significantly higher than $5.74 million in Q1 2024, primarily due to $18.73 million related to the Piedmont acquisition[279] - For Q1 2025, the provision for credit losses was $29.10 million, significantly higher than $5.74 million in Q1 2024, and compared to $6.69 million in Q4 2024[299] - The net charge-offs for Q1 2025 were $8.04 million, up from $2.07 million in Q1 2024[300] Tax and Dividends - The effective tax rate for Q1 2025 was 21.16%, compared to 19.78% in Q1 2024, reflecting a higher effective tax rate despite lower earnings[282] - In Q1 2025, United declared a cash dividend of $0.37 per share, totaling $53.34 million, an increase of $3.12 million or 6.22% from Q1 2024[339] Interest Rate Risk Management - United's risk-based capital ratio was 15.69% at March 31, 2025, well above the regulatory requirement of 10.0% for well-capitalized institutions[336] - United's interest rate risk management strategy includes the use of derivative instruments such as interest rate swaps to protect against adverse price movements[350] - The company utilizes Federal Home Loan Bank advances to manage interest rate risk and match maturities of earning assets[349] - Extension risk is a concern for United, as rising interest rates may lead to reduced returns on mortgage-related securities due to delayed prepayments[351] Securities and Investments - Total investment securities increased by $54.70 million or 1.68%, with Piedmont contributing $94.43 million upon acquisition[246] - As of March 31, 2025, gross unrealized losses on available-for-sale securities were $286.60 million, primarily in agency residential mortgage-backed securities[248] - United's available-for-sale mortgage-backed securities had an amortized cost of $1.81 billion, with an estimated fair value of $1.63 billion[249] - United's mortgage-related securities portfolio had an amortized cost of $1.8 billion as of March 31, 2025, with 46% in fixed rate collateralized mortgage obligations (CMOs)[353] - The projected yield for fixed rate CMOs is 2.84% with an average life of approximately 4.8 years under current prepayment assumptions[353] Performance Metrics - The annualized return on average assets for Q1 2025 was 1.06%, down from 1.19% in Q1 2024, while the return on average shareholders' equity decreased to 6.47% from 7.25%[276] - Average earning assets increased by $2.48 billion, or 9.51%, in Q1 2025, primarily due to a $1.94 billion increase in average net loans[287] - The net interest margin improved to 3.69% in Q1 2025, up 25 basis points from 3.44% in Q1 2024[288] - The interest spread for Q1 2025 was 2.83%, compared to 2.49% in Q1 2024[297] - The allowance for credit losses was $346.99 million as of March 31, 2025, deemed adequate for expected losses on existing loans[308]

Group 1: Earnings Performance - United Bankshares (UBSI) reported quarterly earnings of $0.59 per share, missing the Zacks Consensus Estimate of $0.66 per share, and down from $0.64 per share a year ago, representing an earnings surprise of -10.61% [1] - The company posted revenues of $290.39 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.15%, compared to year-ago revenues of $255.57 million [2] - Over the last four quarters, United Bankshares has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - United Bankshares shares have lost about 8.2% since the beginning of the year, compared to the S&P 500's decline of -8.6% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimate for the coming quarter at $0.71 on $290.8 million in revenues, and $2.83 on $1.18 billion in revenues for the current fiscal year [7] - The estimate revisions trend for United Bankshares is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The Zacks Industry Rank for Banks - Southeast is currently in the top 25% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8] - Another stock in the same industry, National Bankshares (NKSH), is expected to report quarterly earnings of $0.52 per share, reflecting a year-over-year change of +40.5% [9]

Financial Performance - United Bankshares, Inc. reported earnings of $84.3 million, or $0.59 per diluted share for Q1 2025, compared to $94.4 million, or $0.69 per diluted share in Q4 2024, reflecting a decrease of 10.7% in earnings [2][5][11]. - Net income for Q1 2025 was $84,306,000, a decrease of 10.5% from $94,408,000 in Q4 2024 but a slight decrease of 2.9% from $86,814,000 in Q1 2024 [33]. - Earnings per share (EPS) for March 2025 was $0.59, a decrease from $0.70 in December 2024, reflecting a decline of 15.7% [41]. Income and Expenses - Net interest income reached a record $260.1 million in Q1 2025, an increase of $27.5 million, or 12%, from Q4 2024, primarily driven by the Piedmont acquisition [6]. - Noninterest income for Q1 2025 was $29.6 million, a slight increase of $236 thousand, or less than 1%, from Q4 2024 [8]. - Noninterest expense rose to $153.6 million in Q1 2025, including $11.3 million in merger-related expenses, compared to $134.2 million in Q4 2024 [9][15]. Asset and Loan Growth - Average earning assets increased by $1.9 billion, or 7%, from Q4 2024, largely due to increases in average net loans and loans held for sale [6]. - Total assets increased to $32,180,240 thousand as of March 2025, up from $30,012,726 thousand in December 2024, representing a growth of 7.2% [39]. - Net loans reached $23,167,570 thousand, an increase of 8.3% from $21,397,254 thousand in December 2024 [39]. Credit Quality - The provision for credit losses was $29.1 million in Q1 2025, which included $18.7 million related to non-PCD loans from Piedmont, compared to $6.7 million in Q4 2024 [7][13]. - Non-performing loans decreased to $69.8 million, or 0.29% of loans & leases, at March 31, 2025, down from $73.4 million, or 0.34%, at December 31, 2024 [17]. - Total EOP non-performing assets decreased to $71,250 thousand in March 2025 from $73,727 thousand in December 2024, a reduction of 3.4% [49]. Capital and Ratios - As of March 31, 2025, United's estimated risk-based capital ratio was 15.7%, well above the regulatory requirement of 10.0% [20]. - The primary capital ratio was 17.09% in March 2025, slightly down from 17.47% in December 2024 [46]. - The effective tax rate for Q1 2025 was 21.16%, compared to 22.01% in Q4 2024 and 19.78% in Q1 2024 [37]. Shareholder Information - United repurchased approximately 567 thousand shares of its common stock at an average price of $34.93 during Q1 2025 [21]. - Common dividends declared per share remained stable at $0.37 for both March 2025 and December 2024 [41]. - The dividend payout ratio increased to 63.26% in March 2025, compared to 53.24% in December 2024 [41]. Efficiency and Performance Metrics - The net interest margin improved to 3.69% in Q1 2025, an increase of 20 basis points from 3.49% in Q4 2024 [6]. - Return on average assets for Q1 2025 was 1.06%, down from 1.25% in Q4 2024 and 1.19% in Q1 2024 [33]. - The efficiency ratio increased to 53.03% in March 2025 from 51.23% in December 2024, indicating a decline in operational efficiency [46].

Core Points - United Bank and FHLBank Atlanta announced a $4.7 million investment for affordable housing projects in Washington, D.C. and Virginia, creating 363 new units [1][3] - The funding is part of FHLBank Atlanta's Affordable Housing Program and aims to address the growing need for affordable housing [3][4] Project Summaries - Bluestone Town Center Residences in Harrisonburg, VA received $1 million for 62 affordable housing units for seniors with incomes between 30% and 60% of AMI, expected completion by early 2026 [2] - Hope View Apartments received $1 million for 42 housing units for seniors with incomes at or below 80% of AMI, including 16 units for homeless households, expected completion in early 2026 [4] - 2229 M Street NE Apartments received $1 million for 92 rental units for families, with 89% for households at or below 50% of AMI, expected completion by the end of 2026 [4] - Wagner Senior Residences received $742,805 for 67 affordable housing units, with 90% for seniors below 50% of AMI, expected completion by the end of 2026 [4] - 2911 Rhode Island Avenue NE Apartments received $1 million for 100 units for households between 30% and 80% of AMI, expected completion in spring 2028 [4] Organizational Background - United Bank is a community bank with over $32 billion in consolidated assets and more than 240 offices across several states, committed to community development and affordable housing initiatives [5] - FHLBank Atlanta provides financing and community development grants to support affordable housing projects, having awarded approximately $9.1 billion since 1990, assisting over 1.2 million households [6]

Core Points - United Bank and FHLBank Atlanta announced a $4.7 million investment for affordable housing projects in Washington, D.C. and Virginia, creating 363 new units [1][3] - The funding is part of FHLBank Atlanta's Affordable Housing Program and aims to address the growing need for affordable housing [3][4] Project Summaries - Bluestone Town Center Residences in Harrisonburg, VA received $1 million for 62 affordable housing units for seniors with incomes between 30% and 60% of AMI, expected completion by early 2026 [2] - Hope View Apartments received $1 million for 42 housing units for seniors with incomes at or below 80% of AMI, including 16 units for homeless households, expected completion in early 2026 [4] - 2229 M Street NE Apartments received $1 million for 92 rental units for families, with 89% for households at or below 50% of AMI, expected completion by the end of 2026 [4] - Wagner Senior Residences received $742,805 for 67 affordable housing units, with 90% for seniors below 50% of AMI, expected completion by the end of 2026 [4] - 2911 Rhode Island Avenue NE Apartments received $1 million for 100 units for households between 30% and 80% of AMI, expected completion in spring 2028 [4] Organizational Background - United Bank is a community bank with over $32 billion in consolidated assets and more than 240 offices across several states, committed to community development and affordable housing initiatives [5] - FHLBank Atlanta provides financing and grants to support affordable housing and economic development, having awarded approximately $9.1 billion since 1990 to assist over 1.2 million households [6]

Core Viewpoint - United Bankshares (UBSI) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - Rising earnings estimates for United Bankshares suggest an improvement in the company's underlying business, likely leading to increased stock prices [5][10]. Recent Earnings Estimate Revisions - For the fiscal year ending December 2025, United Bankshares is expected to earn $2.83 per share, reflecting a 2.9% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for United Bankshares has increased by 5.2%, indicating positive sentiment among analysts [8]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating [9][10]. - The upgrade of United Bankshares to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

In my last article on United Bankshares ( UBSI ) I highlighted the strength of this bank over the decades, which is a rare factor to find in such a cyclical industry. UBSI has been issuing a growing dividendHi there, welcome to my profile. My name is Eugenio Catone, I live in Italy and I am 26 years old. In 2023 I graduated in Business Administration and I am completing my studies. My interest in financial markets started about 5 years ago when I accidentally came across a video about trading. That was the ...

Regulatory Compliance - United Bank's deposits are insured by the FDIC, and the bank is subject to deposit insurance assessments to maintain the Deposit Insurance Fund (DIF) [74]. - United and United Bank must comply with capital adequacy standards established by the Federal Reserve Board under the Basel III Capital Rules [77]. - The company is subject to regulatory scrutiny regarding incentive compensation arrangements, which could impact acquisition activities [105]. - United Bank must comply with the CFPB's final rule requiring data availability for consumers, effective by April 1, 2027 [97]. - The Anti-Money Laundering Act of 2020 requires financial institutions to adopt a risk-based approach to compliance, impacting operational procedures [103]. - The CFPB's final rule on overdraft credit requires compliance with consumer protection standards, effective October 1, 2025 [98]. - Financial institutions must notify regulators of significant cybersecurity incidents within 36 hours, impacting operational risk management [113]. - The Federal Reserve Board has indicated that bank holding companies should carefully review their dividend policy, discouraging maximum allowable payment ratios unless asset quality and capital are strong [71]. - Changes in the U.S. presidential administration may lead to significant regulatory changes affecting financial institutions [99]. - Certain banking laws may inhibit potential acquisitions, affecting the market price of United's common stock [164]. Financial Performance and Capital Management - United and United Bank are required to maintain a minimum Common Equity Tier 1 (CET1) ratio of 4.5% plus a 2.5% capital conservation buffer, resulting in a minimum CET1 ratio of 7.0% [77]. - United Bank was classified as "well capitalized" as of December 31, 2024, allowing it to engage in a wider range of banking activities [89]. - As of December 31, 2024, approximately $458.4 million was available for dividend payments from United Bank to United without regulatory approval [160]. - The declaration and payment of future cash dividends will depend on United's earnings, liquidity, and capital requirements [159]. - United's ability to raise additional capital will depend on market conditions and its financial performance, which may not be assured [166]. - United Bank's net interest income is significantly dependent on market interest rates, which can affect overall earnings [153]. Strategic Growth and Acquisitions - Regulatory approvals for acquisitions may be delayed or denied due to compliance issues, affecting strategic growth opportunities [157]. - The company faces potential dilution of tangible book value and net income per share from future acquisitions [156]. - The company adopted a "clawback" policy for executive compensation in compliance with SEC regulations, effective from October 2, 2023 [111]. Economic and Environmental Risks - High inflation and economic downturns could adversely affect the quality of United's loan portfolio and customer repayment ability [174]. - Climate change poses both physical and transition risks that may negatively impact United's financial condition and creditworthiness of customers [175][178]. - The company is subject to reputational risk regarding its response to climate change and relationships with carbon-intensive industries [179]. - The company may face unanticipated environmental liabilities related to properties acquired through foreclosure, impacting financial results [170]. Community and Social Responsibility - In 2023, United Bank received a "Satisfactory" rating in its Community Reinvestment Act (CRA) Performance Evaluation from the Federal Reserve Bank of Richmond [92]. - The Inflation Reduction Act of 2022 imposes a 1% excise tax on the fair market value of stock repurchased by publicly traded U.S. corporations [73].

Financial Performance - For the quarter ended December 2024, United Bankshares (UBSI) reported revenue of $262.72 million, down 0.6% year-over-year [1] - EPS for the quarter was $0.69, an increase from $0.66 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $261.09 million, resulting in a surprise of +0.63% [1] - The company delivered an EPS surprise of +1.47%, with the consensus EPS estimate being $0.68 [1] Key Metrics - Efficiency Ratio was reported at 51.2%, better than the average estimate of 52.7% based on two analysts [4] - Average balance of earning assets was $26.69 billion, compared to the estimated $26.26 billion [4] - Net interest margin was reported at 3.5%, matching the average estimate of 3.5% [4] - Net Charge-off as a percentage of Average Loans was 0.1%, consistent with the average estimate [4] - Total Noninterest Income was $29.32 million, below the estimated $30.68 million [4] - Income from mortgage banking operations was $2.31 million, significantly lower than the average estimate of $4.30 million [4] Stock Performance - Shares of United Bankshares have returned -0.3% over the past month, while the Zacks S&P 500 composite increased by +2.5% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]