United Bankshares' Q3 Net Income Jumps 37% on Strong Loan Growth

TL;DR

**UBSI is crushing it with loan growth and net income, but watch that credit loss provision – could be a red flag for future risk.**

AI Summary

UNITED BANKSHARES INC/WV reported a significant increase in net income and revenue for the three and nine months ended September 30, 2025. Net income for the three months rose to $130,748 thousand, a 37.25% increase from $95,267 thousand in the prior year. For the nine months, net income reached $335,775 thousand, up 20.53% from $278,588 thousand in 2024. Total interest income for the three months increased by 12.59% to $430,957 thousand, driven by a 14.07% rise in interest and fees on loans to $378,193 thousand. Net interest income after provision for credit losses also saw a substantial increase of 20.02% to $268,020 thousand for the three-month period. The company's total assets grew by 11.27% to $33,407,181 thousand from $30,023,545 thousand at December 31, 2024, largely due to a 13.68% increase in net loans and leases to $24,219,656 thousand. Goodwill increased by $129,975 thousand, primarily from the acquisition of Piedmont Bancorp, Inc. Total deposits also expanded by 12.11% to $26,883,520 thousand. The provision for credit losses increased significantly to $12,095 thousand for the three months, up 74.20% from $6,943 thousand in 2024, indicating a potential increase in credit risk.

Why It Matters

This strong performance, particularly in net income and loan growth, signals robust operational health for United Bankshares, potentially attracting investors seeking growth in the regional banking sector. The acquisition of Piedmont Bancorp, Inc. demonstrates a strategic expansion, which could enhance market share and competitive positioning against other regional banks. For employees, this growth could mean increased job security and opportunities. Customers may benefit from an expanded service network and potentially more competitive offerings as the bank scales. However, the notable increase in provision for credit losses warrants investor attention, as it could indicate a more cautious outlook on future loan performance or a shift in lending portfolio risk, impacting future profitability and potentially the broader market's perception of regional bank asset quality.

Risk Assessment

Risk Level: medium — The provision for credit losses surged by 74.20% to $12,095 thousand for the three months ended September 30, 2025, compared to $6,943 thousand in the prior year, and by 155.04% to $47,087 thousand for the nine months. This significant increase suggests a heightened expectation of loan defaults or a more conservative approach to credit risk, which could impact future earnings. Additionally, goodwill increased by $129,975 thousand due to the Piedmont Bancorp, Inc. acquisition, introducing integration risks and potential impairment if the acquisition does not perform as expected.

Analyst Insight

Investors should consider holding UBSI given its strong net income and asset growth, but closely monitor future credit loss provisions and the performance of the Piedmont Bancorp, Inc. acquisition. A deeper dive into the loan portfolio's composition and non-performing assets would be prudent to assess the sustainability of current growth and manage potential credit quality risks.

Financial Highlights

revenue

$430,957,000

total Assets

$33,407,181,000

net Income

$130,748,000

cash Position

$2,518,719,000

revenue Growth

+12.59%

Revenue Breakdown

Key Numbers

• $130.7M — Net Income (Q3 2025) (Increased 37.25% from $95.3M in Q3 2024)
• $335.8M — Net Income (YTD Q3 2025) (Increased 20.53% from $278.6M in YTD Q3 2024)
• $431.0M — Total Interest Income (Q3 2025) (Increased 12.59% from Q3 2024)
• $24.2B — Net Loans and Leases (Sep 30, 2025) (Increased 13.68% from $21.4B at Dec 31, 2024)
• $33.4B — Total Assets (Sep 30, 2025) (Increased 11.27% from $30.0B at Dec 31, 2024)
• $26.9B — Total Deposits (Sep 30, 2025) (Increased 12.11% from $24.0B at Dec 31, 2024)
• $12.1M — Provision for Credit Losses (Q3 2025) (Increased 74.20% from $6.9M in Q3 2024)
• $47.1M — Provision for Credit Losses (YTD Q3 2025) (Increased 155.04% from $18.5M in YTD Q3 2024)
• $129.9M — Goodwill Increase (Due to acquisition of Piedmont Bancorp, Inc.)
• 140,416,592 — Common Shares Outstanding (Oct 31, 2025) (Reflects current share count)

Key Players & Entities

• UNITED BANKSHARES INC/WV (company) — registrant
• Piedmont Bancorp, Inc. (company) — acquired entity
• $130,748 thousand (dollar_amount) — net income for three months ended September 30, 2025
• $95,267 thousand (dollar_amount) — net income for three months ended September 30, 2024
• $335,775 thousand (dollar_amount) — net income for nine months ended September 30, 2025
• $278,588 thousand (dollar_amount) — net income for nine months ended September 30, 2024
• $430,957 thousand (dollar_amount) — total interest income for three months ended September 30, 2025
• $378,193 thousand (dollar_amount) — interest and fees on loans for three months ended September 30, 2025
• $12,095 thousand (dollar_amount) — provision for credit losses for three months ended September 30, 2025
• $6,943 thousand (dollar_amount) — provision for credit losses for three months ended September 30, 2024

FAQ

Risk Factors

• Increased Provision for Credit Losses [medium — financial]: The provision for credit losses significantly increased by 74.20% to $12,095 thousand for Q3 2025, and by 155.04% to $47.1 million year-to-date, compared to the prior year. This suggests a potential increase in perceived credit risk within the loan portfolio.
• Goodwill from Acquisitions [medium — operational]: Goodwill increased by $129,975 thousand, primarily due to the acquisition of Piedmont Bancorp, Inc. While acquisitions can drive growth, they also introduce integration risks and potential overvaluation of acquired assets.
• Interest Rate Sensitivity [medium — market]: As a bank, United Bankshares is exposed to fluctuations in interest rates. Changes in interest rates can impact net interest income, the fair value of securities, and loan demand. The increase in total interest income by 12.59% indicates a dynamic interest rate environment.
• Compliance and Regulatory Changes [medium — regulatory]: The banking industry is subject to extensive regulation. Changes in regulatory requirements, capital adequacy rules, or compliance standards could increase operating costs or restrict business activities.

Industry Context

United Bankshares operates within the community banking sector, characterized by a focus on local markets and personalized customer service. The industry is currently experiencing growth in loan and deposit volumes, driven by economic activity. However, banks face ongoing challenges related to interest rate sensitivity, increasing regulatory compliance costs, and competition from larger financial institutions and fintech companies.

Regulatory Implications

The significant increase in the provision for credit losses may attract scrutiny from regulators regarding the bank's risk management practices and loan portfolio quality. Compliance with evolving capital requirements and consumer protection regulations remains a critical focus for maintaining operational stability and avoiding penalties.

What Investors Should Do

1. Monitor the trend of the provision for credit losses closely, as a sustained increase could signal deteriorating loan quality and impact future earnings.
2. Evaluate the integration success of the Piedmont Bancorp acquisition, paying attention to how goodwill is managed and whether it contributes to long-term value creation.
3. Assess the bank's net interest margin trends in light of the current interest rate environment and its impact on profitability.
4. Review the company's capital adequacy ratios and liquidity position to ensure resilience against potential market shocks or regulatory changes.

Glossary

Provision for credit losses

An expense set aside by a financial institution to cover potential losses from loans that may not be repaid. It reflects management's estimate of potential future loan defaults. (A significant increase in this provision, as seen in Q3 2025, indicates a potential rise in credit risk within the company's loan portfolio.)

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its identifiable net assets. It represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. (The substantial increase in goodwill due to the Piedmont Bancorp acquisition highlights the company's growth strategy through M&A and the associated integration considerations.)

Net interest income

The difference between the interest income generated by a bank and the interest paid out to its depositors and lenders. It is a primary driver of profitability for most financial institutions. (The increase in net interest income after provision for credit losses by 20.02% for Q3 2025 is a key indicator of the bank's core lending profitability.)

Securities available for sale

Investments in debt or equity securities that are not classified as held-to-maturity or trading securities. They are reported at fair value on the balance sheet, with unrealized gains and losses included in other comprehensive income. (These securities represent a portion of the bank's investment portfolio, and their fair value can be influenced by market conditions.)

Allowance for loan and lease losses

A contra-asset account that reduces the carrying amount of loans and leases to their estimated net realizable value. It is a valuation reserve against which actual loan losses are charged. (The balance of this allowance, along with the provision for credit losses, provides insight into the bank's assessment of the credit quality of its loan portfolio.)

Year-Over-Year Comparison

Compared to the prior year, United Bankshares Inc./WV has demonstrated robust growth in both revenue and net income for the nine months ended September 30, 2025. Total interest income increased by 12.59%, and net income saw a substantial rise of 20.53% year-to-date. The balance sheet reflects significant expansion, with total assets growing by 11.27% and net loans and leases by 13.68%, largely fueled by acquisitions. However, a notable concern is the sharp increase in the provision for credit losses, up 155.04% year-to-date, suggesting a more cautious outlook on credit quality despite overall strong performance.

Key Financial Figures

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

Filing Documents

• d869432d10q.htm (10-Q) — 4765KB
• d869432dex311.htm (EX-31.1) — 11KB
• d869432dex312.htm (EX-31.2) — 11KB
• d869432dex321.htm (EX-32.1) — 3KB
• d869432dex322.htm (EX-32.2) — 3KB
• 0001193125-25-271463.txt ( ) — 23446KB
• ubsi-20250930.xsd (EX-101.SCH) — 2677KB
• d869432d10q_htm.xml (XML) — 6393KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Consolidated Balance Sheets (Unaudited) September 30, 2025 and December 31, 2024 4 Consolidated Statements of Income (Unaudited) for the Three and Nine Months Ended September 30, 2025 and 2024 5 Consolidated Statements of Comprehensive Income (Unaudited) for the Three and Nine Months Ended September 30, 2025 and 2024 7 Consolidated Statement of Changes in Shareholders' Equity (Unaudited) for the Three and Nine Months Ended September 30, 2025 and 2024 8 Condensed Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 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 60

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 81

Controls and Procedures

Item 4. Controls and Procedures 84

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 85

Risk Factors

Item 1A. Risk Factors 85

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 85

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 86

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 86

Other Information

Item 5. Other Information 86

Exhibits

Item 6. Exhibits 87

Signatures

Signatures 88 2 Table of Contents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item1. FINANCIAL STATEMENTS (UNAUDITED) The September 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 nine months ended September 30, 2025 and 2024, the related consolidated statement of changes in shareholders' equity for the three and nine months ended September 30, 2025 and 2024, the related condensed consolidated statements of cash flows for the nine months ended September 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) September 30 December 31 2025 2024 (Unaudited) (Note 1) Assets Cash and due from banks $ 267,506 $ 240,655 Interest-bearing deposits with other banks 2,249,868 2,050,321 Federal funds sold 1,345 1,268 Total cash and cash equivalents 2,518,719 2,292,244 Securities available for sale at estimated fair value (amortized cost-$ 3,248,173 at September 30, 2025 and $ 3,282,690 at December 31, 2024, allowance for credit losses of $ 0 at September 30, 2025 and December 31, 2024) 3,023,976 2,959,719 Securities held to maturity, net of allowance for credit losses of $ 17 at September 30, 2025 and $ 18 at December 31, 2024 (estimated fair value-$ 1,020 at September 30, 2025 and December 31, 2024) 1,003 1,002 Equity securities at estimated fair value 34,694 21,058 Other investment securities 299,851 277,517 Loans held for sale measured using fair value option 24,226 44,360 Loans and leases 24,531,155 21,680,498 Less: Unearned income ( 11,449 ) ( 7,005 ) Loans and leases, net of unearned income 24,519,706 21,673,493 Less: Allowance for loan and lease losses ( 300,050 ) ( 271,844 ) Net loans and leases

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 September 30, 2025 and 2024 and for the three-month and nine-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 note

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