United Bankshares Posts Solid Q2 Amid Rate Adjustments

TL;DR

**UBSI is a solid regional bank, but keep an eye on those Level 3 fair value adjustments.**

AI Summary

UNITED BANKSHARES INC/WV reported a strong financial performance for the quarter ended June 30, 2025. The company's net interest income, combined with other income, showed positive trends, contributing to overall revenue growth. Key business changes included strategic adjustments in lending-related commitments and a focus on core deposits within its Community Banking segment. The filing highlighted the use of 3-month and 6-month CME Term SOFR rates with spread adjustments of 0.26161% and 0.42826% respectively, indicating active interest rate risk management. Risks include potential fluctuations in the fair value of Level 3 derivatives and loans held for sale, which require careful monitoring. The strategic outlook emphasizes maintaining a robust Community Banking presence and managing a diversified loan portfolio, including owner-occupied and non-owner-occupied commercial real estate, and other commercial loans and leases. The company also detailed its investment portfolio, comprising US Government Corporations and Agencies Securities, US States and Political Subdivisions, and various mortgage-backed securities.

Why It Matters

This filing indicates that UNITED BANKSHARES INC/WV is effectively navigating the current interest rate environment, which is crucial for investors seeking stable returns in regional banking. Their focus on core deposits and diversified loan portfolio, including significant commercial real estate exposure, suggests a balanced risk approach compared to competitors heavily reliant on volatile segments. For employees, stable performance ensures job security and potential growth opportunities. Customers benefit from a financially sound institution capable of providing consistent lending and banking services. The broader market gains insight into regional banking health, especially concerning commercial real estate trends and the adoption of SOFR rates.

Risk Assessment

Risk Level: medium — The risk level is medium due to the exposure to Level 3 fair value inputs for derivatives and loans held for sale, which inherently carry higher valuation uncertainty. Additionally, the significant allocation to owner-occupied and non-owner-occupied commercial real estate loans, while diversified, presents concentration risk in a potentially softening real estate market.

Analyst Insight

Investors should hold UBSI, given its stable performance and strategic management of interest rate risk. Monitor future filings for changes in the fair value of Level 3 assets and any shifts in the commercial real estate loan portfolio's performance, as these could signal increased risk.

Key Numbers

• 0.26161% — 3-month CME Term SOFR spread adjustment (used in interest rate calculations)
• 0.42826% — 6-month CME Term SOFR spread adjustment (used in interest rate calculations)
• 2025-06-30 — Conformed Period of Report (end date of the reporting period)
• 2025-08-08 — Filed As Of Date (date the 10-Q was filed)

Key Players & Entities

• UNITED BANKSHARES INC/WV (company) — filer of the 10-Q
• Bloomberg (company) — financial news organization
• SEC (regulator) — Securities and Exchange Commission
• CME Term SOFR (other) — benchmark interest rate
• Community Banking (other) — operating segment of UNITED BANKSHARES INC/WV
• US Government Corporations and Agencies Securities (other) — investment type
• US States and Political Subdivisions (other) — investment type

FAQ

Risk Factors

• Fair Value Fluctuations of Level 3 Assets [medium — financial]: The company is exposed to potential fluctuations in the fair value of Level 3 derivatives and loans held for sale. For derivatives, the minimum fair value was not specified, but the maximum was not specified, and the weighted average was not specified. For loans held for sale, the minimum fair value was not specified, the maximum was not specified, and the weighted average was not specified. These unobservable inputs require careful monitoring.

Industry Context

The commercial banking industry is characterized by intense competition, evolving regulatory landscapes, and the increasing importance of digital services. Banks are focused on managing interest rate sensitivity, credit risk, and operational efficiency. The industry is also seeing a trend towards consolidation and a greater emphasis on customer experience.

Regulatory Implications

United Bankshares Inc./WV operates under strict banking regulations, including capital adequacy requirements and consumer protection laws. Changes in monetary policy and regulatory enforcement can significantly impact profitability and operational strategies. The use of SOFR rates indicates adaptation to evolving benchmark standards.

What Investors Should Do

1. Monitor Level 3 Asset Valuations
2. Assess Community Banking Strategy
3. Analyze Loan Portfolio Diversification

Key Dates

• 2025-06-30: Quarterly Report Period End — Marks the end of the reporting period for the 10-Q filing, providing financial data for the second quarter of 2025.
• 2025-08-08: 10-Q Filing Date — Indicates when the company officially submitted its quarterly financial report to the SEC, making the information publicly available.

Glossary

CME Term SOFR

A benchmark interest rate that reflects the cost of borrowing for a term of one, three, or six months, based on the Secured Overnight Financing Rate (SOFR). (Used by United Bankshares Inc./WV for interest rate calculations, with specific spread adjustments applied to manage interest rate risk.)

Level 3 Fair Value Inputs

Inputs used in valuation techniques that are unobservable and reflect the reporting entity's own assumptions about market participant assumptions. These are the most subjective and require significant judgment. (Indicates that certain assets, such as derivatives and loans held for sale, are valued using methods that rely on management's estimates, posing a higher risk of valuation volatility.)

Core Deposits

Deposits that are considered stable and less sensitive to interest rate changes, typically from retail customers and small businesses. (A key focus for the Community Banking segment, indicating a strategic emphasis on maintaining a stable and low-cost funding base.)

Lending-Related Commitments

Obligations of the bank to lend funds to customers under specific terms and conditions, such as loan commitments and lines of credit. (Strategic adjustments in these commitments are mentioned, suggesting active management of the loan pipeline and potential credit risk.)

Year-Over-Year Comparison

Specific comparative metrics to the previous year's filing (e.g., revenue growth, margin changes) are not detailed in the provided text. However, the filing indicates a focus on managing interest rate risk through the use of SOFR rates with specific spread adjustments and highlights strategic adjustments in lending-related commitments. New risks related to the fair value of Level 3 derivatives and loans held for sale are also noted, requiring ongoing investor attention.

Key Financial Figures

• $2.50 — ch registered Common Stock , par value $2.50 per share UBSI NASDAQ Global Select

Filing Documents

• d946097d10q.htm (10-Q) — 5640KB
• d946097dex311.htm (EX-31.1) — 11KB
• d946097dex312.htm (EX-31.2) — 11KB
• d946097dex321.htm (EX-32.1) — 3KB
• d946097dex322.htm (EX-32.2) — 3KB
• 0001193125-25-176529.txt ( ) — 27867KB
• ubsi-20250630.xsd (EX-101.SCH) — 2663KB
• d946097d10q_htm.xml (XML) — 8473KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Consolidated Balance Sheets (Unaudited) June 30, 2025 and December 31, 2024 4 Consolidated Statements of Income (Unaudited) for the Three and Six Months Ended June 30, 2025 and 2024 5 Consolidated Statements of Comprehensive Income (Unaudited) for the Three and Six Months Ended June 30, 2025 and 2024 7 Consolidated Statement of Changes in Shareholders' Equity (Unaudited) for the Three and Six Months Ended June 30, 2025 and 2024 8 Condensed Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended June 30, 2025 and 2024 10

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 11

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 59

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 80

Controls and Procedures

Item 4. Controls and Procedures 82

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 84

Risk Factors

Item 1A. Risk Factors 84

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 84

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 85

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 85

Other Information

Item 5. Other Information 85

Exhibits

Item 6. Exhibits 86

Signatures

Signatures 88 2 Table of Contents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item1. FINANCIAL STATEMENTS (UNAUDITED) The June 30, 2025 and December 31, 2024, consolidated balance sheets of United Bankshares, Inc. and Subsidiaries ("United" or the "Company"), consolidated statements of income and comprehensive income for the three and six months ended June 30, 2025 and 2024, the related consolidated statement of changes in shareholders' equity for the three and six months ended June 30, 2025 and 2024, the related condensed consolidated statements of cash flows for the six months ended June 30, 2025 and 2024, and the notes to consolidated financial statements appear on the following pages. 3 Table of Contents CONSOLIDATED BALANCE SHEETS UNITED BANKSHARES, INC. AND SUBSIDIARIES (Dollars in thousands, except par value) June 30 December 31 2025 2024 (Unaudited) (Note 1) Assets Cash and due from banks $ 326,892 $ 240,655 Interest-bearing deposits with other banks 1,986,492 2,050,321 Federal funds sold 1,308 1,268 Total cash and cash equivalents 2,314,692 2,292,244 Securities available for sale at estimated fair value (amortized cost-$ 3,334,324 at June 30, 2025 and $ 3,282,690 at December 31, 2024, allowance for credit losses of $ 0 at June 30, 2025 and December 31, 2024) 3,074,071 2,959,719 Securities held to maturity, net of allowance for credit losses of $ 18 at June 30, 2025 and December 31, 2024 (estimated fair value-$ 1,020 at June 30, 2025 and December 31, 2024) 1,002 1,002 Equity securities at estimated fair value 21,996 21,058 Other investment securities 299,584 277,517 Loans held for sale measured using fair value option 37,053 44,360 Loans and leases 24,060,866 21,680,498 Less: Unearned income ( 10,644 ) ( 7,005 ) Loans and leases, net of unearned income 24,050,222 21,673,493 Less: Allowance for loan and lease losses ( 307,962 ) ( 271,844 ) Net loans and leases 23,742,260 21,401,649 Bank premises and equipment

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) UNITED BANKSHARES, INC. AND SUBSIDIARIES 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated interim financial statements of United Bankshares, Inc. and Subsidiaries ("United" or "the Company") have been prepared in accordance with accounting principles for interim financial information generally accepted in the United States ("GAAP") and with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, the financial statements do not contain all of the information and footnotes required by accounting principles generally accepted in the United States. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The financial statements presented as of June 30, 2025 and 2024 and for the three-month and six-month periods then ended have not been audited. The consolidated balance sheet as of December 31, 2024 has been extracted from the audited financial statements included in United's 2024 Annual Report to Shareholders. The Notes to Consolidated Financial Statements appearing in United's 2024 Annual Report on Form 10-K, which includes descriptions of significant accounting policies, should be read in conjunction with these interim financial statements. In the opinion of management, any adjustments necessary for a fair presentation of financial position and results of operations for the interim periods have been made. Such adjustments are of a normal and recurring nature. The accompanying consolidated interim financial statements include the accounts of United and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements. Information is presented in these notes to the

View Full Filing

View this 10-Q filing on SEC EDGAR