United Bankshares Inc. announces earnings for the third quarter and first nine months of 2024

CHARLESTON – United Bankshares Inc. reported third-quarter 2024 earnings of $95.3 million, or $0.70 per diluted share.

The third quarter 2024 results delivered annualized returns on average assets, average equity and average tangible equity, a non-GAAP measure, of 1.28%, 7.72% and 12.59%, respectively.

“We are pleased to announce this quarter’s results,” said Richard M. Adams Jr., CEO of United. “It was another successful quarter for UBSI and we continue to perform at a high level. Profitability figures remained strong, growth trends continued to move upward and costs remained well under control. In addition, asset quality, liquidity and capital levels remain a source of strength.”

United announced in the second quarter that it has entered into a definitive merger agreement with Piedmont Bancorp Inc. The combined organization will have approximately $32 billion in assets and a network of more than 240 locations in eight states and Washington, DC. The merger is expected to be completed late. in the fourth quarter of 2024 or early the first quarter of 2025.

Earnings for the second quarter of 2024 were $96.5 million, or $0.71 per diluted share, and annualized returns on average assets, average equity and average tangible equity were 1.32%, 7.99%, respectively and 13.12%.

Earnings for the third quarter of 2023 were $96.2 million, or $0.71 per diluted share, and annualized returns on average assets, average equity and average tangible equity were 1.31%, 8.14%, respectively and 13.71%.

Net interest income for the third quarter of 2024 was $230.3 million, an increase of $4.5 million, or 2%, from the second quarter. Tax-equivalent net interest income, a non-GAAP measure that adjusts for the tax-favorable status of income from certain loans and investments, of $231.1 million for the third quarter of 2024, also increased $4.5 million, or 2%, from of the second quarter. The increase in both categories was due to an increase in average short-term investments, a higher return on average net loans and loans held for sale and a decrease in average long-term loans, partially offset by an increase in average interest-bearing deposits, as a higher average interest rate paid on deposits. Average short-term investments increased $457 million, or 49%, from the second quarter, driven primarily by cash received from deposit growth.

Average long-term loans decreased by $541.8 million, or 42%, from the second quarter. Average interest-bearing deposits increased $659.2 million, or 4%, from the second quarter.

The provision for credit losses was $6.9 million for the third quarter of 2024, compared to $5.8 million for the second quarter.

Non-interest income for the third quarter of 2024 was $31.9 million, an increase of $1.7 million, or 6%, from the second quarter. The increase in non-interest income was driven by a $643,000 increase in income from mortgage banking operations, as well as increases in several additional categories of non-interest income, none of which were significant. The increase in income from the mortgage banking activities was primarily due to higher sales volume of mortgage loans and a higher quarterly valuation of mortgage loans held for sale.

An increase in income from mortgage servicing was largely offset by higher net losses on investment securities. Mortgage loan revenues were $7.4 million in the third quarter, an increase of $6.6 million from the second quarter. During the third quarter of 2024, United sold its remaining mortgage liens with a total unpaid principal balance of $1.1 billion at a gain of $7.1 million. Net losses on investment securities were $6.7 million in the third quarter, compared to $218 thousand in the second quarter. During the third quarter of 2024, United sold $196.7 million of available-for-sale investment securities at a loss of $6.9 million.

Non-interest expense for the third quarter of 2024 of $135.3 million was flat from the second quarter and increased by $565,000, or less than 1%. A $1.5 million increase in other non-interest expenses compared to the second quarter, driven by higher amounts of certain general corporate expenses, was largely offset by smaller decreases in several other categories.

Earnings for the third quarter of 2024 were $95.3 million, or $0.70 per diluted share, compared to earnings of $96.2 million, or $0.71 per diluted share, for the third quarter of 2023.

Net interest income for the third quarter of 2024 of $230.3 million was flat compared to the third quarter of 2023 and increased by $1.8 million, or less than 1%. Net interest income in tax equivalents for the third quarter of 2024 was also flat compared to the third quarter of 2023, up $1.8 million, or less than 1%. The slight increase in net interest income and net interest income equivalent to taxes was primarily due to a higher return on average net loans and loans held for sale, a decrease in average long-term loans, organic loan growth and an increase in the average short-term loans. term investments. This was partially offset by the impact of the repricing of deposit rates and an increase in average interest-bearing deposits.

Average income assets for the third quarter of 2024 increased $363.7 million, or 1%, from the third quarter of 2023 due to a $610.4 million increase in average net loans and loans held for sale and an increase of $535.2 million in average short-term investments, partially offset by a decrease of $781.9 million in average investment securities.

Non-interest income for the third quarter of 2024 was $31.9 million, which was a decrease of $1.7 million, or 5%, compared to the third quarter of 2023. Mortgage banking revenues decreased $3 million from the quarter third quarter of 2023, mainly due to lower mortgage interest deductibility. loan production and sales volume. This decline in income from the mortgage banking business was partially offset by increases in several categories of non-interest income, none of which were significant.

An increase in income from mortgage servicing was largely offset by higher net losses on investment securities. Mortgage loan revenues were $7.4 million for the third quarter of 2024, up $6.5 million from the third quarter of 2023, driven by the aforementioned $7.1 million gain on the sale of MSRs in the third quarter 2024. Net losses on investment securities were $6.7 million for the third quarter of 2024, compared to $181,000 for the third quarter of 2023, driven by the aforementioned $6.9 million loss on the sale of AFS investment securities in the third quarter of 2024.

Non-interest expense for the third quarter of 2024 was flat compared to the third quarter of 2023, up $109,000 or less than 1%. A $1.3 million increase in other non-interest expense from the third quarter of 2023, driven by higher amounts of certain general corporate expenses, was largely offset by smaller decreases in several other categories of non-interest expense.

As of September 30, United had consolidated assets of approximately $30 billion and is the 41st largest banking company in the U.S. by market capitalization. United is the parent company of United Bank, which includes more than 225 offices throughout West Virginia, Ohio, Virginia, Maryland, North Carolina, South Carolina, Pennsylvania, Georgia and Washington, DC. United’s shares trade on the NASDAQ Global Select Market under the quotation mark “UBSI.”