United Bankshares, Inc. Announces Record Earnings for the Third Quarter of 2025

United Bankshares, Inc. (NASDAQ: UBSI) ("United"), today reported record earnings for the third quarter of 2025 of $130.7 million, or $0.92 per diluted share. Third quarter of 2025 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," stated 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. ("Piedmont") on January 10, 2025, the third quarter and first nine months of 2025 were impacted by increased levels of average balances, income, and expense as compared to the third quarter and first nine months of 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.

Third quarter of 2025 compared to the second quarter of 2025

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

Net interest income for the third quarter of 2025 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 of 2025 also increased $5.6 million, or 2%, from the second quarter of 2025. The increase in net interest income and tax-equivalent net interest income was driven by an increase in average earning assets partially offset by an increase in average interest-bearing deposits and a decrease in acquired loan accretion income. Average earning assets increased $470.3 million, or 2%, from the second quarter of 2025 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 of 2025. Acquired loan accretion income was $7.5 million for the third quarter of 2025, a decrease of $4.3 million from the second quarter of 2025. The net interest margin was 3.80% and 3.81% for the third quarter of 2025 and the second quarter of 2025, respectively.

The provision for credit losses was $12.1 million for the third quarter of 2025 as compared to $5.9 million for the second quarter of 2025. Refer to the Credit Quality section below for additional information.

Noninterest income for the third quarter of 2025 was $43.2 million, an increase of $11.7 million, or 37%, from the second quarter of 2025, driven by increases in net gains on investment securities of $10.0 million and fees from brokerage services of $1.4 million. Net gains on investment securities of $10.4 million for the third quarter of 2025 were primarily due to unrealized fair value gains on equity securities reflecting common stock appreciation at September 30, 2025, from the prior quarter-end. The increase in fees from brokerage services was primarily due to higher volume.

Noninterest expense for the third quarter of 2025 of $146.7 million was flat from the second quarter of 2025, slightly decreasing $1.3 million, or less than 1%. The decrease in noninterest expense was driven by a $3.2 million net benefit in the expense for the reserve for unfunded loan commitments for the third quarter of 2025, as compared to a $748 thousand net benefit in the expense for the reserve for unfunded loan commitments for the second quarter of 2025 and a $1.1 million decrease in other noninterest expense. Partially offsetting these decreases in noninterest expense were a $1.2 million increase in employee compensation and a $1.2 million increase in employee benefits. The net benefit in the expense for the reserve for unfunded loan commitments for the third quarter of 2025 was primarily due to a decrease in the modeled loss rate within certain loan portfolios partially offset by an increase in the outstanding balance of loan commitments at September 30, 2025, from the prior quarter-end. Other noninterest expense for the second quarter of 2025 included $961 thousand of merger-related expenses. Additionally, within other noninterest expense for the third quarter of 2025 as compared to the second quarter of 2025, decreases in certain general operating expenses were largely offset by an increase in tax credit amortization of $1.4 million. The increase in employee compensation was primarily due to higher employee headcount and brokerage commissions. The increase in employee benefits was primarily due to higher postretirement benefit costs.

For the third quarter of 2025, income tax expense was $33.7 million, an increase of $2.4 million from the second quarter of 2025. This increase in income tax expense was primarily due to the impact of higher earnings. United's effective tax rate was 20.5% and 20.6% for the third quarter of 2025 and second quarter of 2025, respectively.

Third quarter of 2025 compared to the third quarter of 2024

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 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, and an increase in acquired loan accretion income. These increases were partially offset by an increase in average interest-bearing deposits. 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 cost of average interest-bearing deposits decreased 44 basis points from the third quarter of 2024. Acquired loan accretion income was $7.5 million for the third quarter of 2025 as compared to $2.4 million for the third quarter of 2024. Average interest-bearing deposits increased $2.6 billion, or 15%, from the third quarter of 2024. The net interest margin of 3.80% for the third quarter of 2025 was an increase of 28 basis points from the net interest margin of 3.52% for the third quarter of 2024.

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. Partially offsetting these increases in noninterest income were a $7.4 million decrease in mortgage loan servicing income and a $2.0 million decrease in income from mortgage banking activities. Net gains on investment securities for the third quarter of 2025 of $10.4 million were primarily due to the aforementioned unrealized fair value gains on equity securities. Net losses on investment securities of $6.7 million for the third quarter of 2024 were primarily due to a $6.9 million loss on the sale of available for sale ("AFS") investment securities. The increase in fees from brokerage services was primarily due to higher volume. Mortgage loan servicing income was $7.4 million for the third quarter of 2024, driven by a $7.1 million gain on the sale of mortgage servicing rights ("MSRs"). The decrease in income from mortgage banking activities was primarily due to lower mortgage production and a lower quarter-end valuation of mortgage loans held for sale.

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 in noninterest expense 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. The increases in the amortization of intangibles, net occupancy, and other categories of noninterest expense were mainly from the acquisition.

For the third quarter of 2025, income tax expense was $33.7 million as compared to $24.6 million for the third quarter of 2024. This increase of $9.1 million in income tax expense was driven by higher earnings. United's effective tax rate was 20.5% and 20.6% for the third quarter of 2025 and third quarter of 2024, respectively.

First nine months of 2025 compared to the first nine months of 2024

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 $136.0 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. These increases to net interest income and tax-equivalent net interest income were partially offset by an increase in average interest-bearing deposits. 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 $1.0 billion, partially offset by a decrease in average investment securities of $448.8 million. The cost of average interest-bearing deposits decreased 34 basis points from the first nine months of 2024. Acquired loan accretion income was $25.2 million for the first nine months of 2025 as compared to $7.3 million for the first nine months of 2024. 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 net interest margin of 3.77% for the first nine months of 2025 was an increase of 28 basis points from the net interest margin of 3.49% for 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 ("non-PCD") 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 $7.0 million, a $2.4 million increase in income from bank-owned life insurance ("BOLI"), a $1.5 million increase in fees from brokerage services, and a $1.4 million increase in fees from deposit services. Partially offsetting these increases in noninterest income were an $9.0 million decrease in mortgage loan servicing income and a $6.2 million decrease in income from mortgage banking activities. Net gains on investment securities of $11.4 million for the first nine months of 2025 were primarily due to unrealized fair value gains on equity securities. Net losses on investment securities of $7.0 million for the first nine months of 2024 included $13.7 million in losses on sales of AFS investment securities, partially offset by a $6.9 million gain on the VISA share exchange. The increase in BOLI income was primarily due to the impact of higher market values of underlying investments and death benefits recognized in 2025. Increases in fees from brokerage services and in fees from deposit services were primarily due to higher volume. The decrease in mortgage loan servicing income was due to sales of MSRs in 2024. The decrease in income from mortgage banking activities was primarily due to lower mortgage production in 2025.

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 $7.0 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. Employee compensation increased $11.6 million for the first nine months of 2025 and included $1.5 million in merger-related expenses, higher employee headcount mainly from the acquisition, and higher employee incentives partially offset by lower commissions driven by a decrease in mortgage production. Additionally, increases in several other categories of noninterest expense mainly from the acquisition were partially offset by decreases in mortgage loan servicing expense of $2.4 million and Federal Deposit Insurance Corporation ("FDIC") insurance expense of $2.2 million. The decrease in mortgage loan servicing expense was driven by the aforementioned sale of MSRs. FDIC insurance expense for the first nine months of 2024 included $2.1 million in expense for the FDIC's special assessment.

For the first nine months of 2025, income tax expense was $87.7 million as compared to $64.9 million for the first nine months of 2024. The increase of $22.8 million was primarily due to higher earnings and the impact of discrete tax benefits recognized during the first nine months of 2024. United's effective tax rate was 20.7% for the first nine months of 2025 and 18.9% for the first nine months of 2024.

Credit Quality

At September 30, 2025, non-performing loans ("NPLs") were $116.9 million, or 0.48% of loans & leases, net of unearned income. Total non-performing assets ("NPAs") were $123.8 million, including other real estate owned ("OREO") of $6.9 million, or 0.37% of total assets at September 30, 2025. At June 30, 2025, NPLs were $68.3 million, or 0.28% of loans & leases, net of unearned income. Total NPAs were $74.6 million, including OREO of $6.3 million, or 0.23% of total assets at June 30, 2025. During the third quarter of 2025, United downgraded to non-accrual status two commercial real estate nonowner-occupied ("CRE NOO") loans associated with the same sponsor. The loans were originated in 2018 and 2019, are collateralized by office buildings in Northern Virginia, and include a full guarantee from the sponsor. During the third quarter of 2025, the sponsor experienced a significant deterioration in financial condition and concerns arose regarding the sponsor's ability to support the credits on a long-term basis. At September 30, 2025, the non-accrual balance on the two loans was $60.5 million, reflecting $16.5 million of charge-offs recorded during the third quarter of 2025 as further described below. At December 31, 2024, NPLs were $73.4 million, or 0.34% of loans & leases, net of unearned income. Total NPAs were $73.7 million, including OREO of $327 thousand, or 0.25% of total assets at December 31, 2024.

As of September 30, 2025, the allowance for loan & lease losses was $300.1 million, or 1.22% of loans & leases, net of unearned income. At June 30, 2025, the allowance for loan & lease losses was $308.0 million, or 1.28% of loans & leases, net of unearned income. The decrease in the allowance for loan and lease losses from June 30, 2025, to September 30, 2025, was driven by improved collateral valuations of certain individually assessed loans, resolutions of certain individually assessed loans, and improving collateral and loan trends within certain loan portfolios partially offset by loss rate changes and loan growth. At December 31, 2024, the allowance for loan & lease losses was $271.8 million, or 1.25% of loans & leases, net of unearned income. During the first quarter of 2025, United recorded an allowance for loan & lease losses on acquired Piedmont non-PCD loans of $18.7 million and on acquired Piedmont purchased credit deteriorated ("PCD") loans of $17.5 million.

Net charge-offs were $20.0 million, or 0.33% on an annualized basis as a percentage of average loans & leases, net of unearned income for the third quarter of 2025. During the third quarter of 2025, United recorded $16.5 million of charge-offs on the two aforementioned CRE NOO loans reflecting updated collateral valuations. Net charge-offs were $8.4 million, or 0.14% on an annualized basis as a percentage of average loans & leases, net of unearned income for the second quarter of 2025. Net charge-offs were $3.6 million, or 0.07% on an annualized basis as a percentage of average loans & leases, net of unearned income for the third quarter of 2024. Net charge-offs were $36.4 million, or 0.20% on an annualized basis as a percentage of average loans & leases, net of unearned income for the first nine months of 2025. Net charge-offs were $6.9 million, or 0.04% on an annualized basis as a percentage of average loans & leases, net of unearned income for the first nine months of 2024.

Capital

United continues to be well-capitalized based upon regulatory guidelines. United's estimated risk-based capital ratio is 15.7% at September 30, 2025, 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 10.0%, a Common Equity Tier 1 capital ratio of 6.5%, a Tier 1 capital ratio of 8.0%, and a leverage ratio of 5.0%.

During the third quarter of 2025, United repurchased, under a previously announced stock repurchase plan, approximately 735 thousand shares of its common stock at an average price per share of $36.04. During the first nine months of 2025, United repurchased, under a previously announced stock repurchase plan, 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.

About United Bankshares, Inc.

United Bankshares, Inc. (NASDAQ: UBSI) is a financial services company with consolidated assets of approximately $33 billion as of September 30, 2025. United is the 43^rd largest banking company in the U.S. based on market capitalization. It is the parent company of United Bank, which comprises over 240 offices located across Washington, D.C., Virginia, West Virginia, Maryland, North Carolina, South Carolina, Ohio, Pennsylvania, and Georgia. For more information, visit ubsi-inc.com.

Cautionary Statements

The Company is required under generally accepted accounting principles to evaluate subsequent events through the filing of its September 30, 2025 consolidated financial statements on Form 10-Q. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of September 30, 2025 and will adjust amounts preliminarily reported, if necessary.

Use of non-GAAP Financial Measures

This press release contains certain financial measures that are not recognized under U.S. generally accepted accounting principles ("GAAP"). Generally, United has presented these "non-GAAP" financial measures because it believes that these measures provide meaningful additional information to assist in the evaluation of United's results of operations or financial position. Presentation of these non-GAAP financial measures is consistent with how United's management evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in the banking industry.

Specifically, this press release contains certain references to financial measures identified as tax-equivalent (FTE) net interest income, average tangible equity, return on average tangible equity, and tangible book value per share. Management believes these non-GAAP financial measures to be helpful in understanding United's results of operations or financial position.

Net interest income is presented in this press release on a tax-equivalent basis. The tax-equivalent basis adjusts for the tax-favored status of income from certain loans and investments. Although this is a non-GAAP measure, United's management believes this measure is more widely used within the financial services industry and provides better comparability of net interest income arising from taxable and tax-exempt sources. United uses this measure to monitor net interest income performance and to manage its balance sheet composition. The tax-equivalent adjustment combines amounts of interest income on federally nontaxable loans and investment securities using the statutory federal income tax rate of 21%.

Tangible equity is calculated as GAAP total shareholders' equity minus total intangible assets. Tangible equity can thus be considered the most conservative valuation of the company. Tangible equity is also presented on a per common share basis and considering net income, a return on average tangible equity. Management provides these amounts to facilitate the understanding of as well as to assess the quality and composition of United's capital structure. By removing the effect of intangible assets that result from merger and acquisition activity, the "permanent" items of equity are presented. These measures, along with others, are used by management to analyze capital adequacy and performance.

Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as reconciliation to that comparable GAAP financial measure can be found in the attached financial information tables to this press release. Investors should recognize that United's presentation of these non-GAAP financial measures might not be comparable to similarly titled measures at other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and United strongly encourages a review of its condensed consolidated financial statements in their entirety.

Forward-Looking Statements

In this report, we have made various statements regarding current expectations or forecasts of future events, which speak only as of the date the statements are made. These statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are also made from time-to-time in press releases and in oral statements made by the officers of the Company. Forward-looking statements can be identified by the use of the words "expect," "may," "could," "intend," "project," "estimate," "believe," "anticipate," and other words of similar meaning. Such forward-looking statements are based on assumptions and estimates, which although believed to be reasonable, may turn out to be incorrect. Therefore, undue reliance should not be placed upon these estimates and statements. United cannot assure that any of these statements, estimates, or beliefs will be realized and actual results may differ from those contemplated in these "forward-looking statements." The following factors, among others, could cause the actual results of United's operations to differ materially from its expectations: (1) the duration of the U.S. government shutdown and the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve and the trade and tariff policies; (2) general competitive, economic, political and market conditions and other factors that may affect future results of United, including changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; customer borrowing, repayment, investment and deposit practices; the impact, extent and timing of technological changes; capital management activities; and other actions of the Federal Reserve Board and legislative and regulatory actions and reforms; (3) risks related to the acquisition and integration of Piedmont including, among others, (i) the risk that the expected growth opportunities or cost savings from the acquisition may not be fully realized or may take longer to realize than expected, and (ii) reputational risk and the reaction of each company's customers, suppliers, employees or other business partners to the acquisition; (4) deposit attrition, client loss or revenue loss following completed mergers or acquisitions that may be greater than anticipated; (5) regulatory change risk resulting from new laws, rules, regulations, or accounting principles, including, without limitation, the possibility that regulatory agencies may require higher levels of capital above the current regulatory-mandated minimums and the possibility of changes in accounting standards, policies, principles and practices; (6) the cost and effects of cyber incidents or other failures, interruptions, or security breaches of United's systems and those of our customers or third-party providers; (7) competitive pressures on product pricing and services; (8) success, impact, and timing of United's business strategies, including market acceptance of any new products or services; (9) volatility and disruptions in global capital and credit markets; (10) operational, technological, cultural, regulatory, legal, credit and other risks associated with the exploration, consummation and integration of potential future acquisitions; (11) catastrophic events such as hurricanes, tornados, earthquakes, floods or other natural or human disasters, including public health crises and infectious disease outbreaks, as well as any government actions in response to such events; (12) geopolitical risk from terrorist activities and armed conflicts that may result in economic and supply disruptions, and loss of market and consumer confidence; (13) the risks of fluctuations in market prices for United common stock that may or may not reflect economic condition or performance of United; and (14) the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations. For more information about factors that could cause actual results to differ materially from United's expectations, refer to its reports filed with the Securities and Exchange Commission, including the discussion under "Risk Factors" in the Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov. Further, any forward-looking statement speaks only as of the date on which it is made, and United undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. You are advised to consult further disclosures United may make on related subjects in our filings with the SEC.