United Bankshares(US:UBSI)2025-01-24 13:01Earnings 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% from $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%) to $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%) compared to 2023, primarily due to higher deposit rates and lower investment securities[21] - Net interest income for Q4 2024 was $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%) to $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% decrease from $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% decrease from $6.9 million in Q4 2023[41][44] - Non-performing loans (NPLs) increased to $73.4 million (0.34% of loans & leases) at December 31, 2024, up from $45.5 million (0.21%) at December 31, 2023[27] - Allowance for loan & lease losses stood at $271.8 million (1.25% of loans & leases) at December 31, 2024, compared to $259.2 million (1.21%) at December 31, 2023[28] - Net charge-offs for 2024 were $12.5 million (0.06% of average loans & leases), up from $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% growth[48] - Return on Average Tangible Equity (non-GAAP) rose to 12.03% in December 2024 compared to 11.27% in December 2023[56] Asset and Deposit Growth - United completed the acquisition of Piedmont Bancorp on January 10, 2025, adding $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% year-over-year growth[46] - Total securities decreased to $3,259,296 as of December 31, 2024, compared to $4,125,754 in December 2023, a decline of 21.0%[46] - Gross loans increased to $21,680,498 as of December 31, 2024, up from $21,373,185 in December 2023, a 1.4% year-over-year growth[46] - Total deposits grew to $23,961,859 as of December 31, 2024, compared to $22,819,319 in December 2023, a 5.0% increase[46] - Total earning assets for Q4 2024 increased to $26,687,835 thousand, up from $25,875,812 thousand in Q4 2023, with a yield of 5.62% compared to 5.68% in the previous year[50] - 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% compared to 6.00% in the previous year[50] - Interest-bearing deposits grew to $17,871,685 thousand in Q4 2024 from $16,414,152 thousand in Q4 2023, with a yield of 3.02% compared to 2.95% in the previous year[50] - Total assets for Q4 2024 reached $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% in 2023[53] - Loans and loans held for sale, net of unearned income, for the full year 2024 were $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] - Interest-bearing deposits for the full year 2024 increased to $17,171,286 thousand from $15,782,761 thousand in 2023, with a yield of 3.14% compared to 2.48% in the previous year[53] - Total assets for the full year 2024 were $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% compared to 21.0% in 2023[26] - Effective tax rate for Q4 2024 was 22.01%, down from 23.81% in Q4 2023[44] - Efficiency Ratio improved to 51.23% in December 2024 from 57.82% in December 2023[56] Dividends and Shareholder Value - Common dividends declared per share for the year ended December 2024 were $1.48, up from $1.45 in December 2023, a 2.1% increase[48] - Book value per share increased to $36.89 as of December 31, 2024, compared to $35.36 in December 2023, a 4.3% growth[48] - Tangible book value per share (non-GAAP) rose to $22.87 as of December 31, 2024, up from $21.27 in December 2023, a 7.5% increase[48] Risk and Forward-Looking Statements - Forward-looking statements highlight risks including U.S. fiscal and monetary policies, global market volatility, inflation, regulatory changes, and geopolitical events[39] - Price / Earnings Ratio decreased to 13.53x in December 2024 from 16.00x in December 2023[56] - Loans & Leases, net of unearned income / Deposit Ratio was 90.45% in December 2024, down from 93.60% in December 2023[56] - Non-performing Assets / Total Assets increased to 0.25% in December 2024 from 0.16% in December 2023[56] Loan Origination and Yield - Loans originated in December 2024 totaled $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% compared to 6.00% in the previous year[50] - Loans and loans held for sale, net of unearned income, for the full year 2024 were $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]