United Bankshares(UBSI) - 2024 Q4 - Annual Results

Earnings and Financial Performance - Q4 2024 earnings were $94.4 million, or$0.69 per diluted share, with annualized returns on average assets, equity, and tangible equity of 1.25%, 7.48%, and 12.03%, respectively[2] - Full-year 2024 earnings were $373.0 million, or$2.75 per diluted share, with returns on average assets, equity, and tangible equity of 1.26%, 7.61%, and 12.43%, respectively[2] - Net income for Q4 2024 was $94.4 million, compared to$79.4 million in Q4 2023, representing an 18.9% increase[41][44] - Diluted earnings per share for Q4 2024 were $0.69, up 16.9$0.59 in Q4 2023[41] - Basic earnings per share (EPS) for the year ended December 2024 was $2.76, up from$2.72 in December 2023, a 1.5% increase[48] - Diluted EPS for the year ended December 2024 was $2.75, compared to$2.71 in December 2023, a 1.5% growth[48] - Net Income (GAAP) for December 2024 was $94,408, up from$79,390 in December 2023[56] Net Interest Income and Margin - Net interest income for Q4 2024 increased by $2.4 million (1$232.6 million compared to Q3 2024, driven by lower deposit rates and increased average earning assets[7] - Net interest margin for Q4 2024 was 3.49%, down from 3.52% in Q3 2024 and 3.55% in Q4 2023[7][14] - Full-year 2024 net interest income decreased by $8.9 million (1$233,403 thousand, slightly higher than $230,556 thousand in Q4 2023[50] - Net interest income for the full year 2024 was$914,430 thousand, slightly lower than $923,938 thousand in 2023[53] Noninterest Income and Expense - Noninterest income for Q4 2024 decreased by$2.6 million (8%) to $29.3 million compared to Q3 2024, primarily due to declines in mortgage loan servicing and banking activities[9] - Noninterest expense for Q4 2024 decreased by$18.1 million (12%) compared to Q4 2023, largely due to lower FDIC insurance and reserve expenses[17] - Noninterest expense for 2024 decreased by $15.2 million (3$545.0 million, driven by reductions in FDIC insurance expense ($10.6 million), reserve for unfunded loan commitments ($8.3 million), mortgage loan servicing expense ($3.2 million), and amortization of intangibles ($1.5 million)[25] - Noninterest income for Q4 2024 was $29.3 million, a 12.9$33.7 million in Q4 2023[41][44] Credit Losses and Loan Performance - The provision for credit losses in Q4 2024 was $6.7 million, slightly lower than the$6.9 million in Q3 2024[8] - The provision for credit losses for 2024 was $25.2 million, down from$31.2 million in 2023[22] - Provision for credit losses for Q4 2024 was $6.7 million, a 2.7$6.9 million in Q4 2023[41][44] - Non-performing loans (NPLs) increased to $73.4 million (0.34$45.5 million (0.21%) at December 31, 2023[27] - Allowance for loan & lease losses stood at $271.8 million (1.25$259.2 million (1.21%) at December 31, 2023[28] - Net charge-offs for 2024 were $12.5 million (0.06$6.7 million (0.03%) in 2023[29] - Total EOP Non-performing Loans increased to $73,400 in December 2024 from$45,498 in December 2023[59] - Allowance for Loan & Lease Losses ending balance was $271,844 in December 2024, up from$259,237 in December 2023[59] Capital and Liquidity - United's estimated risk-based capital ratio was 16.5% at December 31, 2024, with Common Equity Tier 1 capital, Tier 1 capital, and leverage ratios at 14.2%, 14.2%, and 11.7%, respectively[30] - Consolidated assets as of December 31, 2024, were approximately $30 billion, making United the 41st largest banking company in the U.S. by market capitalization[31] - Tangible equity is calculated as GAAP total shareholders' equity minus total intangible assets, used to assess the quality and composition of United's capital structure[37] - Total shareholders' equity increased to$4,993,223 as of December 31, 2024, compared to $4,771,240 in December 2023, a 4.7$2.4 billion in total assets and $2.1 billion in total loans[4] - Total deposits as of December 31, 2024, were$23.96 billion, a 5.0% increase from $22.82 billion in the same period last year[41] - Total assets as of December 31, 2024, were$30.02 billion, a 0.3% increase from $29.93 billion in the same period last year[41] - Cash and cash equivalents increased to$2,292,244 as of December 31, 2024, up from $1,598,943 in December 2023, reflecting a 43.4$3,259,296 as of December 31, 2024, compared to $4,125,754 in December 2023, a decline of 21.0$21,680,498 as of December 31, 2024, up from $21,373,185 in December 2023, a 1.4$23,961,859 as of December 31, 2024, compared to $22,819,319 in December 2023, a 5.0$26,687,835 thousand, up from $25,875,812 thousand in Q4 2023, with a yield of 5.62$21,713,148 thousand in Q4 2024 from $21,279,444 thousand in Q4 2023, with a yield of 5.95$17,871,685 thousand in Q4 2024 from $16,414,152 thousand in Q4 2023, with a yield of 3.02$30,012,726 thousand, up from $29,164,146 thousand in Q4 2023[50] - For the full year 2024, total earning assets were$26,230,908 thousand, with a yield of 5.74%, compared to $25,984,208 thousand and a yield of 5.41$21,612,707 thousand, with a yield of 6.04%, compared to $20,909,248 thousand and a yield of 5.77$17,171,286 thousand from $15,782,761 thousand in 2023, with a yield of 3.14$29,580,359 thousand, up from $29,295,658 thousand in 2023[53] Tax and Efficiency Metrics - Income tax expense for 2024 decreased to$91.6 million from $97.5 million in 2023, with an effective tax rate of 19.7$1.48, up from $1.45 in December 2023, a 2.1$36.89 as of December 31, 2024, compared to $35.36 in December 2023, a 4.3$22.87 as of December 31, 2024, up from $21.27 in December 2023, a 7.5$132,381, down from $225,319 in September 2024[59] - Loans and loans held for sale, net of unearned income, increased to$21,713,148 thousand in Q4 2024 from $21,279,444 thousand in Q4 2023, with a yield of 5.95$21,612,707 thousand, with a yield of 6.04%, compared to $20,909,248 thousand and a yield of 5.77% in 2023[53]