United Bankshares announces record earnings for third quarter of 2025 | News, Sports, Jobs

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CHARLESTON – United Bankshares Inc. this week reported record earnings for the third quarter of 2025 of $130.7 million, or $0.92 per diluted share.

The third quarter results produced annualized returns on average assets, average equity and average tangible equity, a non-GAAP measure, of 1.57%, 9.58% and 15.45%, respectively.

“UBSI’s earnings momentum from the first half of the year carried through into the third quarter of 2025,” said Richard M. Adams Jr., United’s chief executive officer. “It was another quarter of record earnings, marked by continued organic growth, tightly managed expenses and strong profitability metrics.”

Earnings for the second quarter of 2025 were $120.7 million, or $0.85 per diluted share, and annualized returns on average assets, average equity and average tangible equity were 1.49%, 9.05% and 14.67%, respectively.

As a result of the acquisition of Piedmont Bancorp Inc. on Jan. 10, the third quarter and first nine months of 2025 were impacted by increased levels of average balances, income and expense as compared to the same periods in 2024. Earnings for the third quarter of 2024 were $95.3 million, or $0.70 per diluted share, and annualized returns on average assets, average equity and average tangible equity were 1.28%, 7.72% and 12.59%, respectively.

Earnings for the third quarter of 2025 were $130.7 million, or $0.92 per diluted share, compared to $120.7 million, or $0.85 per diluted share, for the second quarter of 2025.

Net interest income for the third quarter was a record $280.1 million, an increase of $5.6 million, or 2%, from the second quarter of 2025. Tax-equivalent net interest income, a non-GAAP measure which adjusts for the tax-favored status of income from certain loans and investments, for the third quarter also increased $5.6 million, or 2%, from the second quarter.

Average earning assets increased $470.3 million, or 2%, from the second quarter, driven by increases in average net loans and loans held for sale of $310.8 million and average short-term investments of $111.1 million. Average interest-bearing deposits increased $415.5 million, or 2%, from the second quarter.

The provision for credit losses was $12.1 million for the third quarter of 2025, compared to $5.9 million for the second quarter.

Noninterest income for the third quarter was $43.2 million, an increase of $11.7 million, or 37%, from the second quarter, driven by increases in net gains on investment securities of $10 million and fees from brokerage services of $1.4 million.

Noninterest expense for the third quarter of $146.7 million was flat from the second quarter, slightly decreasing $1.3 million, or less than 1%.

Earnings for the third quarter of 2025 were $130.7 million, or $0.92 per diluted share, as compared to earnings of $95.3 million, or $0.70 per diluted share, for the third quarter of 2024.

Net interest income for the third quarter of 2025 increased $49.9 million, or 22%, from the third quarter of 2024. Tax-equivalent net interest income increased $49.8 million, or 22%, from the third quarter of 2024. The increases were primarily due to an increase in average earning assets, a lower average rate paid on deposits and an increase in acquired loan accretion income. Average earning assets increased $3.3 billion, or 13%, from the third quarter of 2024, driven by increases in average net loans and loans held for sale of $2.7 billion and average short-term investments of $750.2 million, partially offset by a decrease in average investment securities of $154.8 million. The increase in average loans from the third quarter of 2024 was driven by the Piedmont acquisition and organic loan growth.

The provision for credit losses was $12.1 million for the third quarter of 2025 as compared to $6.9 million for the third quarter of 2024.

Noninterest income for the third quarter of 2025 was $43.2 million, an increase of $11.3 million, or 35%, from the third quarter of 2024. The increase in noninterest income was driven by net gains on investment securities for the third quarter of 2025 of $10.4 million as compared to net losses on investment securities for the third quarter of 2024 of $6.7 million, a $1.2 million increase in fees from brokerage services, and smaller increases in several other categories of noninterest income.

Noninterest expense for the third quarter of 2025 was $146.7 million, an increase of $11.4 million, or 8%, from the third quarter of 2024. The increase was driven by increases in employee compensation of $5.6 million, employee benefits of $1.6 million, amortization of intangibles of $1.4 million, net occupancy of $1.2 million and smaller increases in several other categories of noninterest expense. The increase in employee compensation was primarily due to higher employee headcount from the acquisition and higher employee incentives. The increase in employee benefits was primarily due to higher medical insurance expenses partially driven by additional employees from the acquisition.

Earnings for the first nine months of 2025 were $335.8 million, or $2.36 per diluted share, as compared to earnings of $278.6 million, or $2.06 per diluted share, for the first nine months of 2024.

Net interest income for the first nine months of 2025 increased $136.2 million, or 20%, from the first nine months of 2024. Tax-equivalent net interest income for the first nine months of 2025 increased $136 million, or 20%, from the first nine months of 2024. The increase in net interest income and tax-equivalent net interest income was primarily due to an increase in average earning assets, a lower average rate paid on deposits, an increase in acquired loan accretion income and a decrease in average long-term borrowings.

Average earning assets increased $2.9 billion, or 11%, from the first nine months of 2024, driven by increases in average net loans and loans held for sale of $2.3 billion and average short-term investments of $1 billion, partially offset by a decrease in average investment securities of $448.8 million.

Average long-term borrowings decreased $628.4 million, or 53%, from the first nine months of 2024.

Average interest-bearing deposits increased $2.7 billion, or 16%, from the first nine months of 2024.

The provision for credit losses was $47.1 million for the first nine months of 2025, which included $18.7 million of provision recorded on purchased non-credit deteriorated loans from Piedmont. The provision for credit losses was $18.5 million for the first nine months of 2024.

Noninterest income for the first nine months of 2025 was $104.2 million, an increase of $9.8 million, or 10%, from the first nine months of 2024. The increase in noninterest income was driven by net gains on investment securities for the first nine months of 2025 of $11.4 million as compared to net losses on investment securities for the first nine months of 2024 of $7 million, a $2.4 million increase in income from bank-owned life insurance, a $1.5 million increase in fees from brokerage services and a $1.4 million increase in fees from deposit services.

Noninterest expense for the first nine months of 2025 was $448.3 million, which included $12.7 million in merger-related expenses, while noninterest expense was $410.9 million for the first nine months of 2024, which included $1.6 million in merger-related expenses. Other noninterest expense increased $11.9 million, driven by $7 million in merger-related expenses recognized during the first nine months of 2025 as compared to $1.6 million for the first nine months of 2024 and higher amounts of certain general operating expenses.

As of Sept. 30, non-performing loans were $116.9 million, or 0.48% of loans and leases,

net of unearned income. Total non-performing assets were $123.8 million, including other real estate owned of $6.9 million, or 0.37% of total assets. On June 30, NPLs were $68.3 million, or 0.28% of loans and leases, net of unearned income. Total NPAs were $74.6 million, including

Other real estate owned of $6.3 million, or 0.23% of total assets at June 30.

On Dec. 31, NPLs were $73.4 million, or 0.34% of loans and leases, net of unearned income. Total NPAs were $73.7 million, including other real estate owned of $327,000, or 0.25% of total assets on Dec. 31.

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 15.7% as of Sept. 30, while estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 13.4%, 13.4% and 11.3%, respectively. The regulatory requirements for a well-capitalized financial institution are a risk-based capital ratio of 10%, a Common Equity Tier 1 capital ratio of 6.5%, a Tier 1 capital ratio of 8% and a leverage ratio of 5%.

During the third quarter, under a previously announced stock repurchase plan, United repurchased approximately 735,000 shares of its common stock at an average price per share of $36.04. During the first nine months of 2025, United repurchased approximately 2.3 million shares of its common stock at an average price per share of $34.53. United did not repurchase any shares of its common stock during 2024.

United Bankshares Inc. (NASDAQ: UBSI) is a financial services company with consolidated assets of approximately $33 billion as of Sept. 30. United is the 43rd-largest banking company in the U.S. based on market capitalization. It is the parent company of United Bank, which comprises over 240 offices across West Virginia, Ohio, Virginia, Maryland, North Carolina, South Carolina, Pennsylvania, Georgia and Washington, D.C.