8-K: United Bankshares Reports Record 2025 Earnings

United Bankshares, Inc. announced record earnings for the year 2025, reaching $464.6 million, or $3.27 per diluted share, driven by strong organic growth and the Piedmont Bancorp acquisition.

Summary

• Achieved record earnings for the year 2025 of $464.6 million, or $3.27 per diluted share.
• Reported earnings for the fourth quarter of 2025 were $128.8 million, or $0.91 per diluted share.
• Returns on average assets, average equity, and average tangible equity for 2025 were 1.41%, 8.63%, and 13.95%, respectively.
• Net interest income for the year 2025 increased $191.1 million, or 21%, from 2024 to $1,102.164 million.
• The net interest margin for the year 2025 was 3.78%, an increase of 29 basis points from 3.49% for the year 2024.
• The provision for credit losses for the year 2025 was $53.9 million, which included $18.7 million of provision recorded on purchased non-credit deteriorated (non-PCD) loans from Piedmont.
• Non-performing assets (NPAs) were $110.3 million, or 0.33% of total assets, at December 31, 2025, down from 0.37% at September 30, 2025.
• Repurchased approximately 3.6 million shares of common stock during 2025 at an average price per share of $35.24.
• Closed the acquisition of Piedmont Bancorp, Inc. on January 10, 2025, adding approximately $2.4 billion in assets, $2.1 billion in loans, and $2.1 billion in deposits.
• Achieved full-year period-end loan growth of $1.0 billion (4.7%) and deposit growth of $1.0 billion (4.1%), excluding the balances acquired in the Piedmont merger.
• Total merger-related expenses (before tax) for 2025 were $31.407 million.

Sentiment

Score: 8

Explanation: The filing reports record annual earnings, strong profitability, robust capital, and successful integration of an acquisition. While there are minor sequential quarterly declines in some metrics and increased provision for credit losses year-over-year (partly due to acquisition), the overall financial health and strategic execution are highly positive. The outlook for 2026 also indicates continued growth and sound performance.

Positives

• Achieved record net income of $464.6 million and record diluted earnings per share of $3.27 for the full year 2025.
• Generated strong profitability with returns on average assets of 1.41%, average equity of 8.63%, and average tangible equity of 13.95% for 2025.
• Increased dividends to shareholders for the 52nd consecutive year, demonstrating consistent financial strength.
• Returned capital through $212 million of common dividends and $126 million of share repurchases (3.6 million shares) during 2025.
• Successfully closed the merger with Piedmont Bancorp, Inc., expanding into the Greater Atlanta Area and significantly increasing assets, loans, and deposits.
• Achieved strong organic loan growth of $1.0 billion (4.7%) and deposit growth of $1.0 billion (4.1%) in 2025, excluding the Piedmont merger.
• Net interest margin (FTE) increased to 3.78% for 2025, up 29 basis points from 3.49% in 2024.
• Asset quality remains sound with Non-Performing Assets to Total Assets decreasing to 0.33% at December 31, 2025, from 0.37% at September 30, 2025.
• Maintained strong expense control with an efficiency ratio of 48.50% for 2025.
• Capital position remains robust, with estimated risk-based capital ratio of 15.7%, Common Equity Tier 1 capital ratio of 13.4%, Tier 1 capital ratio of 13.4%, and leverage ratio of 11.3%, all significantly above regulatory requirements.
• The cost of average interest-bearing deposits decreased 35 basis points for the year 2025 compared to 2024.

Negatives

• Net income for the fourth quarter of 2025 ($128.8 million) slightly decreased from the third quarter of 2025 ($130.7 million).
• Diluted EPS for the fourth quarter of 2025 ($0.91) slightly decreased from the third quarter of 2025 ($0.92).
• Noninterest income for the fourth quarter of 2025 decreased $12.3 million, or 28%, from the third quarter of 2025, primarily due to net losses on investment securities of $218 thousand compared to net gains of $10.4 million in the prior quarter.
• Noninterest expense for the fourth quarter of 2025 increased $5.0 million, or 3%, from the third quarter of 2025, driven by a $5.6 million increase in the expense for the reserve for unfunded loan commitments.
• Total merger-related expenses (before tax) for 2025 were $31.407 million, impacting various expense categories.
• The provision for credit losses for the year 2025 was $53.9 million, significantly higher than $25.2 million for 2024, partly due to $18.7 million for Piedmont acquired non-PCD loans and $17.5 million for acquired Piedmont PCD loans.
• Mortgage loan servicing income decreased $9.0 million for the year 2025 due to sales of mortgage servicing rights (MSRs) in 2024.
• Income from mortgage banking activities decreased $6.5 million for the year 2025 primarily due to lower mortgage production.
• Non-performing loans increased to $101.5 million at December 31, 2025, from $73.4 million at December 31, 2024.
• The allowance for loan & lease losses as a percentage of loans decreased from 1.25% at December 31, 2024, to 1.20% at December 31, 2025.

Risks

• The effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve and trade and tariff policies.
• General competitive, economic, political, and market conditions, including changes in asset quality and credit risk, and 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.
• Deposit attrition, client loss, or revenue loss following completed mergers or acquisitions that may be greater than anticipated.
• Regulatory change risk resulting from new laws, rules, regulations, or accounting principles, including the possibility that regulatory agencies may require higher levels of capital above current regulatory-mandated minimums and changes in accounting standards.
• The cost and effects of cyber incidents or other failures, interruptions, or security breaches of United's systems and those of its customers or third-party providers.
• Competitive pressures on product pricing and services.
• Success, impact, and timing of United's business strategies, including market acceptance of any new products or services.
• Volatility and disruptions in global capital and credit markets.
• Operational, technological, cultural, regulatory, legal, credit, and other risks associated with the exploration, consummation, and integration of potential future acquisitions.
• 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.
• Geopolitical risk from terrorist activities and armed conflicts that may result in economic and supply disruptions, and loss of market and consumer confidence.
• The risks of fluctuations in market prices for United common stock that may or may not reflect economic condition or performance of United.
• The nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations.

Future Outlook

For 2026, United Bankshares expects mid-single-digit loan and deposit growth, with investment portfolio balances remaining relatively flat. Net interest income (non-FTE) is projected to be between $1.145 billion and $1.175 billion, assuming two 25 bps rate cuts. Provision expense is estimated at $48 million, and noninterest income is expected to range from $125 million to $135 million. Noninterest expense is guided to be between $615 million and $630 million, with an estimated effective tax rate of approximately 21.0%. Stock buyback activity will be market dependent, with the company's capital position remaining robust.

Management Comments

• "Our financial performance in 2025 was among the very best in our Company's long history. We delivered record earnings, strong profitability, resilient credit, and robust capital and liquidity. Underpinning these results was our continued success driving high quality organic growth." Richard M. Adams, Jr., Chief Executive Officer.
• "As we look to the new year, we remain committed to our mission of excellence in service to our shareholders, customers, communities, and employees." Richard M. Adams, Jr., Chief Executive Officer.

Industry Context

The banking industry is navigating a dynamic environment characterized by evolving interest rate policies, with United Bankshares anticipating potential rate cuts in 2026. The company's successful acquisition of Piedmont Bancorp and sustained organic growth demonstrate a strong competitive position within its Mid-Atlantic and Southeast markets, potentially outperforming smaller regional banks facing consolidation pressures. United's emphasis on disciplined risk management and expense control aligns with best practices for financial institutions seeking stability and profitability amidst economic fluctuations.

Comparison to Industry Standards

• United Bankshares has been consistently ranked as one of the most trustworthy banks in America by Newsweek (#1 in 2023, #2 in 2022, #4 in 2024 & 2025), indicating superior public perception and operational integrity compared to many industry peers.
• The company's estimated regulatory capital ratios (Common Equity Tier 1 of 13.4%, Tier 1 of 13.4%, Total Risk-Based of 15.7%, and Leverage of 11.3%) are significantly above the regulatory well-capitalized minimums (6.5%, 8.0%, 10.0%, and 5.0% respectively), showcasing a stronger capital buffer than many industry benchmarks.
• The efficiency ratio of 48.50% for 2025 reflects strong expense control, generally considered favorable and often outperforming less efficient competitors in the banking sector.
• United's achievement of 52 consecutive years of dividend increases is a rare and exceptional feat, demonstrating long-term financial stability and a strong commitment to shareholder returns that few publicly traded companies, including banks, can match.

Stakeholder Impact

• Shareholders: Benefited from record earnings, increased dividends for 52 consecutive years, and active share repurchases, indicating strong shareholder value creation.
• Customers: Expanded service area and offerings through the Piedmont acquisition, potentially leading to broader access to banking services and enhanced customer experience.
• Employees: Experienced increased employee headcount due to the acquisition, though some employee benefits decreased, suggesting a growing workforce with potential for integration challenges.
• Communities: Management reiterated commitment to excellence in service to communities, implying continued local engagement and support.

Next Steps

• Continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of December 31, 2025, through the filing of the Form 10-K.
• Continue share repurchases under the approved plan, with 4.3 million shares remaining as of January 21, 2026.
• Focus on achieving mid-single-digit loan and deposit growth in 2026.
• Manage net interest income within the projected range of $1.145 billion to $1.175 billion for 2026, assuming two 25 bps rate cuts.
• Monitor asset quality and credit trends, with a planning assumption for provision expense of $48 million in 2026.
• Manage noninterest income and expense within the guided ranges of $125 million to $135 million and $615 million to $630 million, respectively, for 2026.

Key Dates

Recommendation

United Bankshares delivered record annual earnings for 2025, demonstrating exceptional financial performance and strategic execution, including a successful acquisition and robust organic growth. Key financial metrics such as Return on Average Assets, Return on Average Equity, and Net Interest Margin are strong and improved year-over-year. Credit quality remains sound, and capital ratios are well above regulatory requirements, indicating financial resilience. The company boasts a remarkable 52-year history of dividend increases and actively returns capital through share repurchases. The 2026 outlook projects continued growth and stable performance, making it an attractive investment for long-term value and income. The current Price-to-Earnings Ratio of approximately 12.1x based on 2026 consensus estimates suggests an appealing valuation for a high-performing regional bank.

Keywords

Banking, Financial Services, Regional Bank, Earnings Report, SEC Filing, UBSI, United Bankshares, Net Income, EPS, Acquisition, Piedmont Bancorp, Loan Growth, Deposit Growth, Net Interest Margin, Credit Quality, Capital Ratios, Share Repurchase, Dividends, Risk Management