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Introduction & Market Context
United Bankshares , Inc. (NASDAQ:UBSI) reported record quarterly earnings in its second quarter 2025 presentation delivered on July 24, 2025. The regional bank, which operates primarily across the Mid-Atlantic and Southeast regions, continues to demonstrate resilience and growth despite broader economic uncertainties facing the banking sector.
Currently trading at $35.03 (as of August 4, 2025), UBSI shares have risen 1.93% from their previous close, reflecting positive market reception to the bank’s strong quarterly performance. The company maintains an attractive valuation with a price-to-earnings ratio of approximately 12.1x based on consensus 2025 estimates.
Quarterly Performance Highlights
United Bankshares achieved record financial results for the quarter ended June 30, 2025. Net income reached an all-time high of $120.7 million, a substantial increase from $84.3 million in Q1 2025 and $96.5 million in Q2 2024. This translated to record diluted earnings per share of $0.85, compared to $0.59 in the previous quarter and $0.71 in the same period last year.
The bank’s profitability metrics showed impressive strength, with return on average assets of 1.49%, return on average equity of 9.05%, and return on average tangible equity of 14.67%. The efficiency ratio remained strong at 48.37%, demonstrating effective expense management.
As shown in the following performance highlights slide:
Net interest income, a key driver of the bank’s earnings, increased to $274.5 million, up from $260.1 million in Q1 2025 and $225.7 million in Q2 2024. The net interest margin (FTE) improved to 3.81%, compared to 3.69% in the previous quarter, reflecting the bank’s ability to manage its interest-earning assets effectively in the current rate environment.
The following chart illustrates the steady improvement in net interest income and margin over recent quarters:
Loan and Deposit Growth Analysis
United Bankshares reported continued growth in its loan portfolio, with total loans increasing to $24.1 billion as of June 30, 2025, compared to $21.6 billion in the same period last year. On a linked-quarter basis, loan balances grew by $187 million, primarily driven by commercial loans.
The loan portfolio remains well-diversified across different segments, with non-owner occupied commercial real estate representing the largest category at 33.2% of total loans. Residential real estate accounts for 24.3%, while construction and land development and commercial loans represent 15.5% and 15.2%, respectively.
The following loan summary provides a detailed breakdown of the portfolio composition:
Geographically, the loan portfolio is diversified across the Southeast (33%), Metro DC/Baltimore (9%), WV/OH/PA/Shenandoah Valley (16%), and other regions (15%). This geographic diversification helps mitigate concentration risks and provides stability to the loan portfolio.
On the funding side, total deposits increased to $26.3 billion as of June 30, 2025, up from $23.1 billion in Q2 2024. The deposit base remains well-balanced between interest-bearing and non-interest-bearing accounts, with the latter representing approximately 25% of total deposits.
The bank maintains a strong liquidity position with $22.5 billion in total available liquidity. Importantly, 67% of deposits are either insured or collateralized, providing stability to the funding base. The average deposit account size is approximately $38,000 across more than 700,000 accounts, indicating a granular and stable deposit franchise.
Credit Quality and Capital Position
United Bankshares continues to demonstrate strong credit quality metrics. Non-performing assets remained low at $74.6 million or 0.23% of total assets as of June 30, 2025, compared to $71.3 million or 0.22% at the end of the previous quarter. The allowance for credit losses stood at $343.8 million, representing 1.43% of loans.
The following slide details the bank’s credit quality metrics:
The bank’s capital position remains robust, with all regulatory capital ratios significantly exceeding "well-capitalized" thresholds. As of June 30, 2025, the common equity tier 1 ratio was 13.4%, the tier 1 capital ratio was 13.4%, and the total risk-based capital ratio was 15.8%.
Tangible book value per share increased to $23.32 as of June 30, 2025, compared to $22.76 at the end of the previous quarter. During Q2 2025, the company repurchased 981,422 shares for $32.5 million, demonstrating its commitment to returning capital to shareholders.
The following slide illustrates the bank’s strong capital position:
Strategic Growth through Acquisitions
United Bankshares has a proven track record of successful acquisitions, which have contributed significantly to its growth over the years. The most recent addition, The Piedmont Bank, has helped increase the company’s total assets to $32.8 billion as of Q2 2025, up from $8.7 billion in 2013.
The bank’s acquisition strategy focuses on expanding its footprint in attractive markets across the Mid-Atlantic and Southeast regions. This approach has allowed United Bankshares to build a premier regional banking franchise with a mix of high-growth metropolitan statistical areas (MSAs) and smaller stable markets.
The following chart illustrates the bank’s growth through strategic acquisitions:
The integration of The Piedmont Bank appears to be progressing well, with merger-related expenses declining significantly from $30.0 million in Q1 2025 to $1.3 million in Q2 2025. This successful integration is contributing to the bank’s strong financial performance.
Forward Outlook
Looking ahead, United Bankshares provided guidance for the remainder of 2025. The bank expects loan and deposit growth to be in the low to mid-single digits (annualized) for the rest of the year. Net interest income (non-FTE) is projected to be between $1.090 billion and $1.100 billion for the full year 2025, assuming two 25 basis point rate cuts.
The bank anticipates non-interest income to range between $115 million and $125 million, while non-interest expense is expected to be between $605 million and $615 million for 2025, including merger-related expenses of $12.6 million. The effective tax rate is estimated at approximately 21.0%.
Management emphasized that asset quality remains sound, with a current planning assumption for total provision expense of $52 million for 2025. Future stock buybacks will be market-dependent.
United Bankshares continues to position itself as an attractive investment opportunity, highlighting its 51 consecutive years of dividend increases, which demonstrates consistent profitability and sound capital management over an extended period. The current quarterly dividend of $0.37 per share equates to a yield of approximately 4.0% based on recent prices.
The bank’s investment thesis is supported by its experienced management team, disciplined risk management, strong expense control, and commitment to excellence in service to employees, customers, shareholders, and communities.
Full presentation:
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