United Bankshares(US:UBSI)2025-04-24 12:00Financial 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].