United Bankshares Reports Strong Q2 Growth Despite Challenges from Piedmont Acquisition

United Bankshares, Inc. (NASDAQ: UBSI) recently reported its financial results for the quarter ended June 30, 2025, showing positive growth amid several challenges. The firm is currently navigating the integration of Piedmont Bancorp, which was acquired earlier this year.

• Net Income: Increased to $120.72 million for Q2 2025 compared to $96.51 million in Q2 2024.
• Earnings Per Share (EPS): Basic EPS rose to $0.85 for Q2 2025, up from $0.71 a year ago.
• Net Interest Income: Grew by 21.63% to $274.54 million, benefiting from increased interest income.
• Credit Loss Provision: Increased to $34.99 million for the first half of 2025, partially due to ownership of additional loans from the Piedmont acquisition.
• Total Assets: Rose to $32.78 billion, an increase of 9.19% from $30.02 billion at the end of 2024.
• Deposits: Increased by $2.37 billion (9.91%), largely driven by the acquisition of Piedmont, which contributed over $2 billion in deposits.
• Loan Growth: Portfolio loans increased by $2.38 billion (10.97%) due to both acquisitions and organic growth, with commercial loans seeing significant increases.
• Non-Interest Income: Slightly up to $31.46 million in Q2 2025 compared to $30.22 million in Q2 2024, but overall down for the first half of the year.
• Net Charge-Offs: Increased to $16.39 million for the first half of 2025, confirming heightened credit risk.

Negative Aspects:

• Net Charge-Off Rate: The annualized net charge-off rate increased to 0.14% from 0.02% in same period last year.
• Allowance for Credit Losses: Increased to $343.78 million, impacting profit forecasts amid rising credit risk compared to $306.75 million at year-end 2024.
• Unrealized Investment Losses: The company recorded gross unrealized losses of $268.66 million on securities held as of June 30, 2025, largely influenced by the rising interest rates.
• Income Tax Rate: The effective tax rate was higher at 20.62% for Q2 2025 compared to 16.36% for Q2 2024, affecting net income.

Overall, United Bankshares is performing well post-acquisition, with significant asset growth and a positive trajectory in earnings. However, challenges remain in managing credit risks and unrealized losses driven by market conditions.