United Bankshares, Inc. (UBSI) reported strong financial results for the first quarter of 2025, with net earnings of $84.3 million, or $0.59 per diluted share. The company’s performance was boosted by record net interest income, margin expansion, and the successful completion of its acquisition of Atlanta-based Piedmont Bancorp, Inc.
The acquisition brought significant growth, contributing to higher average balances, income, and expenses for the quarter. However, it also added about $30 million in merger-related noninterest expenses and provisions for credit losses.
United’s key financial metrics for the first quarter included:
- Return on Average Assets: 1.06%
- Return on Average Equity: 6.47%
- Return on Average Tangible Equity: 10.61%
CEO Richard M. Adams Jr. expressed excitement about officially welcoming Piedmont and expanding into the Atlanta market. “Closing a deal always brings a lot of noise to the quarter,” Adams said, “but that shouldn’t overshadow the excellent results we posted when adjusting for the acquisition.”
Comparing past performances:
- Q4 2024 earnings: $94.4 million ($0.69 per share)
- Q1 2024 earnings: $86.8 million ($0.64 per share)
Despite a slight dip from the previous quarter, the results reflect strong underlying growth, especially considering the merger transition.
Record Net Interest Income
United posted a record $260.1 million in net interest income for the quarter — a 12% increase from Q4 2024. Growth was fueled by:
- A $1.9 billion (7%) increase in average earning assets.
- Lower costs on average interest-bearing deposits, down 17 basis points.
- Higher average loan balances and short-term investments.
Credit and Asset Quality
United set aside $29.1 million in provisions for credit losses, mainly related to Piedmont’s loan portfolio. Still, asset quality remains sound:
- Non-performing loans totaled $69.8 million (0.29% of total loans).
- Total non-performing assets stood at $71.3 million (0.22% of total assets).
Capital and Stock Buybacks
United continues to be well-capitalized with a risk-based capital ratio of 15.7%. During the quarter, the company repurchased approximately 567,000 shares of its stock at an average price of $34.93 per share, resuming its stock buyback program after no repurchases in 2024.
Expanding Footprint
As of March 31, 2025, United had about $33 billion in consolidated assets. It now ranks as the 41st largest banking company in the U.S. by market capitalization. United Bank, its flagship institution, operates more than 240 offices across nine states and Washington, D.C.
