[Earnings Announcement and Performance Summary](index=1&type=section&id=United%20Bankshares%2C%20Inc.%20Announces%20Record%20Earnings%20for%20the%20Second%20Quarter%20of%202025) This section details United Bankshares' record earnings for Q2 2025, driven by the Piedmont acquisition, strong asset quality, and effective expense management, with comparative financial analysis across periods [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) United Bankshares, Inc. (UBSI) announced record earnings for the second quarter of 2025, reaching $120.7 million, or $0.85 per diluted share, driven by the Piedmont Bancorp acquisition, strong asset quality, and effective expense management Q2 2025 Key Earnings Metrics | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income | $120.7 million | $84.3 million | $96.5 million | | Diluted EPS | $0.85 | $0.59 | $0.71 | | Return on Average Assets (Annualized) | 1.49% | 1.06% | 1.32% | | Return on Average Tangible Equity (Annualized, non-GAAP) | 14.67% | 10.61% | 13.12% | - CEO Richard M. Adams, Jr. stated that Q2 2025 was the strongest earnings quarter in the company's history, attributing the success to the entry into the Atlanta market, excellent asset quality, and strong expense control[3](index=3&type=chunk) - The acquisition of Piedmont Bancorp, Inc. on January 10, 2025, significantly impacted the financial results for 2025, leading to increased average balances, income, and expenses[3](index=3&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) This section provides a detailed comparative analysis of United Bankshares' financial performance, breaking down results for Q2 2025 against Q1 2025 and Q2 2024, and H1 2025 against H1 2024, covering net interest income, provision for credit losses, noninterest income, and noninterest expense [Q2 2025 vs. Q1 2025](index=2&type=section&id=Second%20quarter%20of%202025%20compared%20to%20the%20first%20quarter%20of%202025) Earnings surged from $84.3 million in Q1 to a record $120.7 million in Q2, driven by a 6% increase in net interest income, a 12 basis point expansion in net interest margin, reduced provision for credit losses, and lower merger-related expenses - Net interest income rose by **$14.5 million (6%)** QoQ, driven by organic loan growth, the Piedmont acquisition, and a **$5.8 million** increase in acquired loan accretion income[6](index=6&type=chunk) - The net interest margin increased by **12 basis points to 3.81%**, and the interest rate spread widened by **12 basis points to 2.95%**[6](index=6&type=chunk) - Provision for credit losses decreased sharply to **$5.9 million** from **$29.1 million** in Q1, as the prior quarter included an **$18.7 million** provision related to the Piedmont acquisition[7](index=7&type=chunk) - Noninterest expense fell by **$5.6 million**, primarily due to a decrease in merger-related expenses from **$11.3 million** in Q1 to **$1.3 million** in Q2[8](index=8&type=chunk) [Q2 2025 vs. Q2 2024](index=3&type=section&id=Second%20quarter%20of%202025%20compared%20to%20the%20second%20quarter%20of%202024) Year-over-year, earnings grew from $96.5 million to $120.7 million, with net interest income increasing by a substantial $48.8 million (22%) due to a $2.9 billion increase in average earning assets from the Piedmont acquisition and a 31 basis point expansion in net interest margin, while noninterest expense rose by 10% - Net interest income grew by **$48.8 million (22%)** YoY, and the net interest margin expanded by **31 basis points to 3.81%**[12](index=12&type=chunk) - The provision for credit losses remained stable at **$5.9 million** compared to **$5.8 million** in Q2 2024[13](index=13&type=chunk) - Noninterest income increased by **$1.2 million (4%)**, with higher income from bank-owned life insurance partially offset by a **$1.3 million** decrease in income from mortgage banking activities[14](index=14&type=chunk) - Noninterest expense increased by **$13.2 million (10%)**, driven by higher employee compensation and other expenses mainly from the Piedmont acquisition[16](index=16&type=chunk) [First Half 2025 vs. First Half 2024](index=4&type=section&id=First%20half%20of%202025%20compared%20to%20the%20first%20half%20of%202024) For the first six months of 2025, earnings increased to $205.0 million from $183.3 million in the prior year, primarily due to an $86.4 million (19%) increase in net interest income, partially offset by a higher provision for credit losses and a $26.1 million increase in noninterest expense, largely tied to the Piedmont acquisition First Half Performance Comparison | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Income | $205.0 million | $183.3 million | | Diluted EPS | $1.44 | $1.35 | | Net Interest Income | $534.6 million | $448.2 million | | Provision for Credit Losses | $35.0 million | $11.5 million | | Noninterest Expense | $301.6 million | $275.5 million | - The provision for credit losses for H1 2025 was **$35.0 million**, which included an **$18.7 million** provision recorded on non-PCD loans acquired from Piedmont[20](index=20&type=chunk) - Noninterest expense in H1 2025 included **$12.6 million** in merger-related expenses, compared to **$1.3 million** in H1 2024[23](index=23&type=chunk) [Financial Condition](index=5&type=section&id=Financial%20Condition) This section assesses United Bankshares' financial health, focusing on stable credit quality with low non-performing assets and strong capital ratios significantly exceeding regulatory requirements [Credit Quality](index=5&type=section&id=Credit%20Quality) United's asset quality remained sound and stable as of June 30, 2025, with non-performing loans at 0.28% of total loans, non-performing assets at 0.23% of total assets, an allowance for loan and lease losses of $308.0 million (1.28% of loans), and modest net charge-offs at an annualized rate of 0.14% Asset Quality Indicators | Metric | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | :--- | | Non-Performing Loans (NPLs) as % of loans | 0.28% | 0.29% | 0.34% | | Non-Performing Assets (NPAs) as % of assets | 0.23% | 0.22% | 0.25% | | Allowance for Loan & Lease Losses as % of loans | 1.28% | 1.30% | 1.25% | - Net charge-offs for Q2 2025 were **$8.4 million**, or **0.14%** of average loans on an annualized basis, consistent with the previous quarter[28](index=28&type=chunk) [Capital](index=6&type=section&id=Capital) The company continues to be well-capitalized, with regulatory capital ratios significantly exceeding required minimums; as of June 30, 2025, the estimated Common Equity Tier 1 capital ratio was 13.4%, and approximately 1.5 million shares of common stock were repurchased during the first half of 2025 Estimated Capital Ratios (June 30, 2025) | Ratio | UBSI Estimated | Well-Capitalized Requirement | | :--- | :--- | :--- | | Common Equity Tier 1 | 13.4% | 6.5% | | Tier 1 Capital | 13.4% | 8.0% | | Total Risk-Based Capital | 15.8% | 10.0% | | Leverage | 11.3% | 5.0% | - In H1 2025, United repurchased approximately **1.5 million shares** of common stock at an average price of **$33.81 per share**; no shares were repurchased in 2024[30](index=30&type=chunk) [Financial Statements and Data](index=9&type=section&id=Financial%20Statements%20and%20Data) This section provides comprehensive financial statements and key data, including earnings summaries, balance sheets, average balances, shareholder data, and detailed financial ratios for comparative analysis across periods [Earnings Summary and Key Ratios](index=9&type=section&id=Earnings%20Summary%20and%20Key%20Ratios) This section presents a consolidated summary of United Bankshares' earnings, per-share data, key financial ratios, and period-end balance sheet figures for the three and six months ended June 30, 2025, with comparisons to prior periods Financial Highlights (Q2 2025) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income | $120,721 | $84,306 | $96,507 | | Diluted EPS | $0.85 | $0.59 | $0.71 | | Net Interest Margin | 3.81% | 3.69% | 3.50% | | Total Assets (Period End) | $32,783,363 | $32,788,494 | $29,957,418 | | Total Shareholders' Equity (Period End) | $5,364,541 | $5,314,449 | $4,856,633 | [Consolidated Statements of Income](index=10&type=section&id=Consolidated%20Statements%20of%20Income) This section provides a detailed breakdown of the company's revenues and expenses for the three and six months ended June 30, 2025, compared to the same periods in 2024, including both GAAP and non-GAAP (FTE) figures for net interest income Consolidated Statements of Income (Three Months Ended June 30, 2025) | (In Thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Interest Income | $274,537 | $225,715 | | Provision for credit losses | $5,889 | $5,779 | | Total Noninterest Income | $31,460 | $30,223 | | Total Noninterest Expense | $148,020 | $134,774 | | Income before income taxes | $152,088 | $115,385 | | Net Income | $120,721 | $96,507 | [Consolidated Balance Sheets](index=11&type=section&id=Consolidated%20Balance%20Sheets) This section presents the company's financial position as of June 30, 2025, with comparative data for March 31, 2025, December 31, 2024, and June 30, 2024, detailing assets, liabilities, and shareholders' equity Consolidated Balance Sheet Highlights (As of June 30, 2025) | (In Thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total Assets | $32,783,363 | $29,957,418 | | Net Loans | $23,742,260 | $21,331,304 | | Total Deposits | $26,335,874 | $23,066,440 | | Total Shareholders' Equity | $5,364,541 | $4,856,633 | [Consolidated Average Balance Sheets](index=12&type=section&id=Consolidated%20Average%20Balance%20Sheets) This table shows the average balances for assets, liabilities, and equity for the quarters ended June 30, 2025, March 31, 2025, and June 30, 2024, which are used to calculate key performance ratios like net interest margin and return on assets Consolidated Average Balances (Q2 2025 vs Q2 2024) | (In Thousands) | Q2 2025 Average | Q2 2024 Average | | :--- | :--- | :--- | | Total Assets | $32,584,368 | $29,370,164 | | Interest-earning Assets | $28,949,287 | $26,012,725 | | Total Deposits | $26,202,718 | $22,717,095 | | Interest-bearing Liabilities | $20,321,323 | $18,236,763 | | Total Shareholders' Equity | $5,351,140 | $4,857,893 | [Shareholder Data](index=13&type=section&id=Shareholder%20Data) This section provides key data for common shareholders, including earnings per share, dividends, stock price performance, and book value per share calculations for various periods Per Share Data | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Diluted EPS | $0.85 | $0.59 | $0.71 | | Common Dividend Declared | $0.37 | $0.37 | $0.37 | | Book Value Per Share (EOP) | $37.80 | $37.19 | $35.92 | | Tangible Book Value Per Share (EOP, non-GAAP) | $23.32 | $22.76 | $21.87 | [Selected Average Balances and Yields](index=14&type=section&id=Selected%20Average%20Balances%20and%20Yields) This section provides a detailed analysis of net interest income on a tax-equivalent basis, breaking down average balances, interest income/expense, and average yields/rates for each category of earning assets and interest-bearing liabilities for both quarterly and year-to-date periods Net Interest Margin and Spread Analysis (Q2 2025) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Yield on Earning Assets | 5.84% | 5.73% | 5.79% | | Cost of Interest-Bearing Liabilities | 2.89% | 2.90% | 3.27% | | Interest Rate Spread | 2.95% | 2.83% | 2.52% | | Net Interest Margin | 3.81% | 3.69% | 3.50% | [Selected Financial Ratios](index=16&type=section&id=Selected%20Financial%20Ratios) This section presents key performance, valuation, and balance sheet ratios, including profitability ratios like Return on Average Assets, efficiency ratios, and asset quality ratios like Non-performing Assets to Total Assets Key Financial Ratios | Ratio | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Return on Average Assets | 1.49% | 1.06% | 1.32% | | Return on Average Shareholders' Equity | 9.05% | 6.47% | 7.99% | | Return on Average Tangible Equity (non-GAAP) | 14.67% | 10.61% | 13.12% | | Efficiency Ratio | 48.37% | 53.03% | 52.66% | | Non-performing Assets / Total Assets (EOP) | 0.23% | 0.22% | 0.23% | [Supplemental Data (Mortgage and Asset Quality)](index=17&type=section&id=Supplemental%20Data%20(Mortgage%20and%20Asset%20Quality)) This section provides supplemental data on mortgage banking activities, detailed asset quality metrics, and a reconciliation of the allowance for loan and lease losses for the quarter and year-to-date periods Allowance for Loan & Lease Losses Roll-Forward (Q2 2025) | (In Thousands) | Amount | | :--- | :--- | | Beginning Balance (Mar 31, 2025) | $310,424 | | Net Charge-offs | ($8,351) | | Provision for Loan & Lease Losses | $5,889 | | Ending Balance (Jun 30, 2025) | $307,962 | - As previously disclosed, United sold its remaining mortgage servicing rights during the third quarter of 2024, hence there is no mortgage loan servicing data for 2025[63](index=63&type=chunk) [Other Information](index=6&type=section&id=Other%20Information) This section provides background on United Bankshares, clarifies the use of non-GAAP financial measures, and outlines forward-looking statements with associated risks and uncertainties [About United Bankshares, Inc.](index=6&type=section&id=About%20United%20Bankshares%2C%20Inc.) United Bankshares, Inc. is a financial services company with approximately $33 billion in consolidated assets as of June 30, 2025, operating over 240 offices through its subsidiary, United Bank, across nine states and Washington, D.C., and is the 39th largest banking company in the U.S. by market capitalization - As of June 30, 2025, United Bankshares has consolidated assets of approximately **$33 billion**[31](index=31&type=chunk) - The company is the parent of United Bank, which has over **240 offices** in Washington, D.C., Virginia, West Virginia, Maryland, North Carolina, South Carolina, Ohio, Pennsylvania, and Georgia[31](index=31&type=chunk) [Use of non-GAAP Financial Measures](index=7&type=section&id=Use%20of%20non-GAAP%20Financial%20Measures) This press release includes non-GAAP financial measures such as tax-equivalent (FTE) net interest income, average tangible equity, and return on average tangible equity, which management believes provide meaningful additional information for evaluating performance and are consistent with industry practice, with reconciliations to comparable GAAP measures provided in the attached financial tables - The company uses non-GAAP measures because it believes they provide meaningful additional information to assist in evaluating results of operations or financial position[34](index=34&type=chunk) - Specific non-GAAP measures used include tax-equivalent (FTE) net interest income, average tangible equity, return on average tangible equity, and tangible book value per share[35](index=35&type=chunk) [Forward-Looking Statements](index=7&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements regarding future events and expectations, which are subject to various risks and uncertainties, including economic conditions, interest rate policies, and risks related to the integration of acquisitions like Piedmont, meaning actual results may differ materially from those projected - The report includes forward-looking statements that are subject to risks and uncertainties, and actual results may differ[39](index=39&type=chunk) - Key risk factors include changes in monetary and fiscal policies, economic conditions, risks related to the Piedmont acquisition integration, and regulatory changes[39](index=39&type=chunk)

Core Viewpoint - United Bankshares (UBSI) is expected to report a year-over-year increase in earnings and revenues for the quarter ended June 2025, with a consensus outlook indicating potential stock price movements based on actual results compared to estimates [1][3]. Company Summary - The consensus EPS estimate for United Bankshares is $0.77 per share, reflecting an 8.5% increase year-over-year [3]. - Expected revenues for the quarter are $298 million, which represents a 16% increase from the same quarter last year [3]. - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. Earnings Surprise Analysis - The Most Accurate Estimate for United Bankshares is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.32%, suggesting a bearish outlook from analysts [11]. - Despite the negative Earnings ESP, the stock holds a Zacks Rank of 2 (Buy), complicating predictions of an earnings beat [11]. - Historically, United Bankshares has beaten consensus EPS estimates three out of the last four quarters, although it missed the last quarter's estimate by 10.61% [12][13]. Industry Context - In the Southeast banking industry, First Bancorp (FBNC) is expected to report earnings of $0.88 per share, indicating a year-over-year change of 25.7% [17]. - First Bancorp's expected revenue for the quarter is $108.33 million, up 13.2% from the previous year [18]. - The consensus EPS estimate for First Bancorp has been revised down by 0.7% over the last 30 days, resulting in an Earnings ESP of -0.38% and a Zacks Rank of 3 (Hold) [18][19].

Financial Performance & Ratios - UBSI achieved a net income of $373 million and diluted earnings per share of $2.75 in 2024[11] - The company's Return on Average Assets was 1.26%, Return on Average Equity was 7.61%, and Return on Average Tangible Equity was 12.43% in 2024[11] - Net Interest Margin (FTE) remained solid at 3.49%[11] - The efficiency ratio was 52.67%[11] Balance Sheet & Loan Portfolio - Total assets reached $30 billion, and pro forma total assets with Piedmont were $32 billion as of December 31, 2024[6] - Gross loans totaled $22 billion, and pro forma gross loans with Piedmont were $24 billion as of December 31, 2024[6] - Total deposits amounted to $24 billion, and pro forma total deposits with Piedmont were $26 billion as of December 31, 2024[6] - Non-Performing Assets (NPAs) increased to $73727000, representing 0.25% of total assets as of December 31, 2024[28] Piedmont Merger & Outlook - UBSI completed the merger with Piedmont Bancorp, Inc on January 10, 2025[8] - Net interest income (non-FTE) is expected to be in the range of $102 billion to $105 billion for 2025, including ~$20 million from Piedmont acquisition[54]

Core Viewpoint - United Bankshares (UBSI) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - The Zacks Consensus Estimate for United Bankshares has increased by 5.1% over the past three months, with an expected earnings per share of $2.97 for the fiscal year ending December 2025, showing no year-over-year change [8]. Investment Implications - The upgrade reflects an improvement in United Bankshares' underlying business, suggesting that investors may respond positively by driving the stock price higher [5][10]. - The Zacks Rank system classifies stocks into five groups, with only the top 5% receiving a "Strong Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [7][10].

Group 1 - Regional banks often expand through mergers and acquisitions, with varying strategies on the frequency of asset purchases [1] - Some banks exhibit patience by acquiring new assets every few years, while others engage in annual acquisitions [1] - The financial market is viewed as efficient, with most stocks reflecting their real current value, presenting opportunities in less-followed stocks [1]

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]