United Bankshares(US:UBSI)2025-11-07 16:12Financial Position - United's total assets as of September 30, 2025, were $33.41 billion, an increase of $3.38 billion or 11.27% from December 31, 2024[250] - Portfolio loans increased by $2.85 billion or 13.13%, while total liabilities rose by $2.93 billion or 11.71% from year-end 2024[250] - The acquisition of Piedmont Bancorp on January 10, 2025, added approximately $2.30 billion in total assets to United[238] - Cash and cash equivalents increased by $226.48 million or 9.88% from year-end 2024, with net cash acquired in the Piedmont merger amounting to $77.47 million[253] - Total investment securities increased by $100.23 million or 3.08%, with Piedmont contributing $94.43 million upon acquisition[254] - The total available for sale securities at fair value increased by $64.26 million or 2.17%[255] - Shareholders' equity increased by $452.49 million or 9.06% from year-end 2024, primarily due to the acquisition of Piedmont[250] - The company reported a significant increase in equity securities, which rose by $13.64 million or 64.75% due to a net increase in fair value[254] - Total deposits increased by $2.92 billion or 12.19% to $26.88 billion, largely driven by the Piedmont acquisition which contributed $2.11 billion[268] - Shareholders' equity rose by $452.49 million or 9.06% to $5.45 billion, mainly due to the Piedmont acquisition[277] - Retained earnings increased by $177.23 million or 9.24% from year-end 2024, with earnings net of dividends for the first nine months of 2025 totaling $177.23 million[278] - The cash surrender value of bank-owned life insurance policies increased by $47.80 million, with $40.80 million attributed to the Piedmont acquisition[266] - Noninterest-bearing deposits increased by $452.50 million or 7.38%, driven by a $419.11 million increase in commercial noninterest-bearing deposits[269] - Interest-bearing deposits rose by $2.47 billion or 13.85%, with significant contributions from the Piedmont acquisition[268] - Total borrowings decreased by $16.08 million or 2.24% since year-end 2024, despite the addition of $20.00 million in subordinated debt from the Piedmont acquisition[274] - United's risk-based capital ratio is 15.67% as of September 30, 2025, significantly above the regulatory requirement of 10.0%[358] - United's equity to assets ratio was 16.30% at September 30, 2025, slightly down from 16.63% at December 31, 2024[360] - United's average equity to average asset ratio was 16.40% for the first nine months of 2025, compared to 16.52% for the same period in 2024[360] Income and Earnings - Net income for Q3 2025 was $130.75 million, a 37.2% increase from $95.27 million in Q3 2024, with diluted earnings per share rising to $0.92 from $0.70[280] - Net interest income for Q3 2025 increased by $49.86 million, or 21.65%, to $280.12 million compared to Q3 2024, driven by a $48.23 million rise in interest income[292] - Noninterest income for Q3 2025 rose by $11.26 million, or 35.26%, to $43.20 million, primarily due to net gains on investment securities[286] - For the first nine months of 2025, net income was $335.78 million, a 20.5% increase from $278.59 million in the same period of 2024[280] - Net interest income for the first nine months of 2025 was $817.06 million, up from $681.03 million in the same period of 2024, reflecting a year-over-year increase of 20.0%[308] - Tax-equivalent net interest income for Q3 2025 increased by $5.57 million, or 2.02%, from Q2 2025, driven by a $470.28 million increase in average earning assets[296] - Tax-equivalent net interest income for the nine months ended September 30, 2025, was $817.061 million, up from $681.027 million in the same period of 2024[299] Credit Quality - The provision for credit losses was $12.10 million for Q3 2025, up from $6.94 million in Q3 2024, largely due to $18.73 million related to the Piedmont acquisition[285] - The provision for credit losses for the first nine months of 2025 was $47.09 million, significantly higher than $18.46 million for the same period in 2024, marking an increase of 155.5%[311] - Net charge-offs for the first nine months of 2025 totaled $36.40 million, compared to $6.93 million for the same period in 2024, indicating a substantial increase of 424.5%[312] - The allowance for loan and lease losses was $300.05 million at September 30, 2025, up from $271.84 million at December 31, 2024, reflecting an increase of 10.4%[317] - Nonperforming assets totaled $123.76 million as of September 30, 2025, compared to $73.73 million at December 31, 2024, representing an increase of 67.8%[314] - The annualized net charge-offs as a percentage of average loans and leases for the first nine months of 2025 was 0.20%, compared to 0.04% for the same period in 2024[313] - The total allowance for credit losses was $332.69 million at September 30, 2025, compared to $306.76 million at December 31, 2024, an increase of 8.5%[316] Operational Performance - Noninterest expense for Q3 2025 increased by $11.40 million, or 8.42%, to $146.74 million, mainly due to additional employees and branches from the Piedmont acquisition[288] - Employee compensation increased by $5.61 million or 9.59% in Q3 2025 compared to Q3 2024, driven by additional employees from the Piedmont acquisition[337] - Cash provided by operating activities was $359.99 million for the first nine months of 2025, mainly due to net income of $335.78 million[354] - United recorded acquisition-related costs of $31.41 million for the Piedmont merger in the first nine months of 2025[282] Market and Economic Outlook - The forecast for real GDP increased from 1.40% to 1.60% for 2025, with an unemployment rate projection remaining stable at 4.50%[321] - A 100 basis point upward shock to the yield curve is estimated to increase net interest income by 2.39% over one year as of September 30, 2025, compared to 1.75% at December 31, 2024[368] Securities and Investments - As of September 30, 2025, United's available for sale mortgage-backed securities had an amortized cost of $1.83 billion and an estimated fair value of $1.69 billion[256] - The mortgage-related securities portfolio had an amortized cost of $1.8 billion, with approximately 49% in fixed rate collateralized mortgage obligations (CMOs)[375] - United's fixed rate CMOs have an average life of approximately 4.5 years and a weighted average yield of 3.10% under current projected prepayment assumptions[375] - The projected price decline of the fixed rate CMO portfolio in a 300 basis point rate increase would be 14.7%[375] - Net gains on investment securities for Q3 2025 were $10.44 million, compared to net losses of $6.72 million in Q3 2024[328] Shareholder Returns - United repurchased 2,284,282 shares of common stock at an average price of $34.53 per share during the first nine months of 2025[359] - Cash dividends declared were $52.46 million for Q3 2025, up from $50.21 million in Q3 2024, and total cash dividends for the first nine months of 2025 were $158.54 million[361]