United Bankshares (UBSI -1.07%), a regional banking company with deep roots in commercial lending and a significant presence across the Mid-Atlantic and Southeast regions, reported record results for the second quarter on July 24, 2025. The company delivered higher-than-expected earnings and revenue, posting $0.85 in GAAP earnings per share on $306.0 million in GAAP revenue, both beating analyst expectations of $0.76 and $298.8 million. The quarter saw continued growth from its acquisition strategy and improvement in key performance metrics, although rising loan accretion and increased credit losses present areas to watch.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $0.85 | $0.76 | $0.71 | 19.7% |
| Revenue (GAAP) | $306 million | $298.8 million | $225.7 million | 35.6% |
| Net Interest Income (GAAP) | $274.5 million | $225.7 million | 22% | |
| Return on Average Assets | 1.49% | 1.32% | 0.17 pp | |
| Net Interest Margin | 3.81% | 3.50% | 0.31 pp |
Source: United Bankshares. Note: Analyst estimates for the quarter provided by FactSet.
Business Overview and Focus Areas
United Bankshares operates as a commercial bank holding company, offering traditional banking services such as commercial, real estate, and consumer loans, along with deposit and trust services, brokerage, and digital banking. It is known for expanding through acquisitions, having completed 33 deals, most recently Piedmont Bancorp (acquired in January 2025) and Community Bankers Trust (acquired in December 2021), which helped connect its Mid-Atlantic and Southeast markets under one network.
The company’s priority areas include effectively integrating acquired banks and closely managing its substantial commercial and real estate loan portfolios. Careful risk management is crucial because nearly half its loans are tied to commercial real estate or construction, sectors that can carry higher risk in times of market stress. As of December 31, 2024, approximately 47.8% of United's total loan portfolio consisted of real estate and construction loans. Developing talent has also become a focus, with new leadership programs and staff expansion to support future growth.
Q2 Highlights: Performance Drivers and Key Metrics
A standout result this quarter stemmed from the full integration of Piedmont Bancorp, which meaningfully increased United’s customer base and presence, especially in Atlanta. The acquisition helped increase average loans and deposits. The net loan portfolio grew $2.45 billion year-over-year to $24.05 billion as of Q2 2025. Commercial loans and leases increased from $15.89 billion in Q2 2024 to $18.48 billion in Q2 2025. Net interest income, a key measure of profit from lending versus cost of funds, climbed 22% year-over-year in Q2 2025.
Net interest margin—a critical profitability metric—expanded to 3.81% in Q2 2025 from 3.50% in Q2 2024, supported by higher loan yields and a strategic effort to keep deposit costs in check. A notable contribution came from “accretion income,” which is a boost to income recognized as a result of accounting for acquired loans at discounts that are then gradually recovered. In Q2 2025, United recognized $11.8 million in acquired loan accretion income. This contributed 8 basis points to overall margin in Q2 2025, rising from just $2.4 million in Q2 2024 to $11.8 million with Piedmont now fully reflected in the results.
Noninterest income for the second quarter of 2025 was $31.5 million, an increase of $1.2 million, or 4%, from the second quarter of 2024, driven by a $1.1 million increase in income from bank-owned life insurance and smaller gains in several other categories, partially offset by decreases in income from mortgage banking activities and mortgage loan servicing. Loans originated totaled $116.6 million in Q2 2025, down from $185.3 million in Q2 2024, a decrease of approximately 37% year-over-year. The mortgage segment remains a soft spot, as both servicing income and related fees have been reduced following the sale of mortgage servicing rights in 2024.
Credit quality metrics remained solid in Q2 2025, with nonperforming loans down to 0.28% of total loans, though net charge-offs increased from 0.02% to 0.14% of average loans compared to the prior year. However, charge-offs rose sharply over the prior year, from 0.02% to 0.14% of average loans in Q2 2025, suggesting a return to more typical loss levels post-pandemic. The company set aside $5.9 million for potential loan losses in Q2 2025, in line with the prior year but well below the previous quarter’s provision, which was temporarily higher due to the Piedmont acquisition.
Segments, Services, and Notable Events
Total deposits rose 14.2% year over year to $26.34 billion as of June 30, 2025, with increases in both interest-bearing and noninterest-bearing accounts.
Noninterest expense, which covers salaries, occupancy, and technology costs, increased 10% year-over-year in Q2 2025, mostly due to additional staff and operations from the acquisition. However, merger-related expenses dropped substantially from the prior quarter, helping improve the efficiency ratio (a measure of costs as a percentage of revenue) to 48.37% in Q2 2025 from 52.66% in Q2 2024.
Shareholder returns remained a priority. United maintained its quarterly dividend at $0.37 per share in Q2 2025, keeping the payout ratio below half of earnings due to the stronger profit base. The company also restarted its share repurchase activity, buying back 981,000 shares at an average price of $33.17 in Q2 2025.
Looking Ahead: Outlook and Considerations
United’s management did not issue any numeric guidance for the remainder of fiscal 2025 regarding earnings, revenue, or loan growth. However, leadership pointed to ongoing momentum from the Piedmont acquisition, disciplined expense management, and continued vigilance over credit quality as foundational supports for the remainder of 2025. United’s capital ratios as of June 30, 2025, were well above regulatory minimums.
Key factors for investors in coming quarters include the sustainability of recent margin expansion, the potential reversal of unusually low deposit costs, and credit risk trends associated with the large exposure to commercial and real estate loans. Noninterest income trajectory, especially from fee and mortgage-related businesses, will also be important to watch as market conditions evolve. The quarterly dividend was maintained at $0.37 per share.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
