United Bankshares(US:UBSI)2026-01-22 13:00Financial Performance - United Bankshares, Inc. reported record earnings for 2025 of $464.6 million, or $3.27 per diluted share, representing a 24.5% increase from 2024 earnings of $373.0 million, or $2.75 per diluted share [2][17]. - Net interest income for 2025 increased by $191.1 million, or 21%, to a record $1.1 billion, driven by a rise in average earning assets and lower average rates paid on deposits [18]. - Noninterest income for 2025 was $135.2 million, an increase of $11.5 million, or 9%, primarily due to net gains on investment securities and increased fees from brokerage services [20]. - Net income for the year ended December 31, 2025, was $464,603,000, an increase from $372,996,000 in 2024, which is a 24.5% rise [40]. - Net interest income rose to $1,105,314 thousand for the year ended December 2025, compared to $914,430 thousand for the previous year, reflecting an increase of 20.83% [54]. Credit Losses and Asset Quality - The provision for credit losses for 2025 was $53.9 million, which included $18.7 million related to purchased non-credit deteriorated loans from the Piedmont acquisition [19]. - The provision for credit losses for the year ended December 31, 2025, was $53,866,000, significantly higher than $25,153,000 in 2024, indicating increased risk management measures [40]. - As of December 31, 2025, non-performing loans (NPLs) were $101.5 million, or 0.41% of loans & leases, net of unearned income, down from $116.9 million, or 0.48% at September 30, 2025 [24]. - Non-performing loans as a percentage of total loans and leases stood at 0.41% in December 2025, compared to 0.34% in December 2024, showing a slight deterioration in asset quality [57]. Expenses and Efficiency - Noninterest expense for 2025 was $600.1 million, including $12.7 million in merger-related expenses, reflecting an increase of $55.1 million, or 10%, from 2024 [22]. - Noninterest expense related to the reserve for unfunded loan commitments increased by $10.0 million in 2025, largely due to merger-related expenses from the Piedmont acquisition [22]. - The efficiency ratio improved to 47.65% in December 2025, down from 51.23% in December 2024, indicating better cost management [57]. Capital and Shareholder Returns - United's estimated risk-based capital ratio was 15.7% at December 31, 2025, well above the regulatory requirement of 10.0% for a well-capitalized institution [28]. - The Common Equity Tier 1 capital ratio was estimated at 13.4% at December 31, 2025, exceeding the regulatory minimum of 6.5% [28]. - Cash dividends per share increased to $0.38 in Q4 2025, up from $0.37 in Q4 2024, indicating a commitment to returning value to shareholders [40]. - Common dividends declared per share increased to $0.38 in December 2025 from $0.37 in September 2025, reflecting a growth of 2.70% [49]. - The company reported a dividend payout ratio of 41.50% for December 2025, compared to 40.12% in September 2025, indicating a slight increase in the proportion of earnings distributed as dividends [49]. Asset Growth and Composition - Average earning assets increased by $3.0 billion, or 11%, from 2024, driven by a $2.5 billion increase in average net loans and loans held for sale [18]. - Total assets reached $33,660,281,000 at the end of Q4 2025, compared to $30,023,545,000 at the end of Q4 2024, a growth of 12.1% [45]. - Total assets increased to $33,587,391 thousand in December 2025, up from $33,069,770 thousand in September 2025, representing a growth of 1.57% [47]. - Total deposits increased to $27,060,939,000 in Q4 2025, up from $23,961,859,000 in Q4 2024, marking a 13.1% growth [45]. - The total deposits rose to $27,077,100 thousand in December 2025, compared to $26,635,159 thousand in September 2025, indicating a growth of 1.66% [47]. Mergers and Acquisitions - The acquisition of Piedmont Bancorp, Inc. on January 10, 2025, significantly impacted the financial results, contributing to increased average balances and income [3]. - The company recorded an allowance for loan & lease losses on acquired Piedmont non-PCD loans of $18.7 million and on acquired Piedmont PCD loans of $17.5 million during the first quarter of 2025 [25].