United Bankshares Inc (W Va)

Latest Results (26.12.2024):

Net Income and Earnings

In the third quarter of 2024, United Bankshares Inc (W Va) reported a net income of $95.3 million, with diluted earnings per share (EPS) of $0.70. This represents a slight decrease from the second quarter of 2024, where the net income was $96.5 million and diluted EPS was $0.71. The company's net interest income increased by $4.5 million, driven by higher yields on average net loans and a decrease in average long-term borrowings.

Revenue and Interest Margin

United Bankshares Inc (W Va) saw its net interest margin increase from 3.50% to 3.52% in the third quarter of 2024. The net interest income (FTE) rose by $4.5 million, attributed to an increase in average short-term investments and a higher yield on average net loans. The company also experienced a decrease in average long-term borrowings, which was partially offset by an increase in average interest-bearing deposits and a higher average rate paid on deposits.

Deposit Growth and Asset Quality

During the third quarter of 2024, United Bankshares Inc (W Va) achieved a significant growth in period-end deposits, which increased by $762 million. Excluding the decline in brokered deposits, the growth was even more substantial at $906 million. The company's asset quality remained strong, with non-performing assets constituting only 0.22% of total assets, indicating a stable financial position.

Dividends and Shareholder Returns

United Bankshares Inc (W Va) declared a quarterly dividend of $0.37 per share, equating to a yield of approximately 4.0% based on recent prices. The year 2023 marked the 50th consecutive year of dividend increases for the company, highlighting its commitment to returning value to shareholders. This consistent dividend growth underscores the company's robust financial health and shareholder-friendly policies.

Outlook and Strategic Developments

Looking ahead, United Bankshares Inc (W Va) is poised for further growth with the anticipated merger with Piedmont Bancorp, Inc., which received shareholder approval during the third quarter of 2024. The merger is expected to close in the fourth quarter of 2024 or early in the first quarter of 2025, subject to regulatory approval and customary closing conditions. This strategic move is expected to enhance the company's market position and drive future growth.