United Bankshares (UBSI -1.07%), a regional bank holding company with a presence across the Mid-Atlantic and Southeast, released results for Q2 2025 on July 24, 2025. The company reported record net income and revenue, with diluted earnings per share (EPS) of $0.85 (GAAP)—well above the $0.76 consensus estimate. Revenue (GAAP) was $306.0 million, topping the $298.8 million analyst forecast. Driven largely by the completed Piedmont Bancorp acquisition, United exceeded expectations and showed notable improvements in profitability and efficiency metrics.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP, Diluted) | $0.85 | $0.76 | $0.71 | 19.7% |
| Revenue (GAAP) | $306.0 million | $298.8 million | $255.9 million | 19.6% |
| Net Interest Income | $274.5 million | $225.7 million | 21.6% | |
| Net Interest Margin | 3.81% | 3.50% | 0.31 pp | |
| Return on Average Tangible Equity (Non-GAAP) | 14.67% | 13.12% | 1.55 pp | |
| Source: Analyst estimates for the quarter provided by FactSet. |
Business Overview and Strategic Focus
United Bankshares operates as a bank holding company, offering a range of financial services including personal and commercial banking, mortgages, and investment products throughout the Mid-Atlantic and Southeast regions. Its growth model relies heavily on acquisitions—33 in total since formation—including recent deals: Piedmont Bancorp (acquired January 2025), Community Bankers Trust (acquired December 2021), and Carolina Financial (acquired May 2020).
Key areas for United include maintaining a diversified loan portfolio, with recent efforts focused on growing commercial lending while reducing consumer auto loans. The company must also meet regulatory standards set by several major banking authorities, making compliance and capital management central to its operational strategy. Building market presence and investing in employee development are other ongoing priorities.
Quarter Highlights and Key Developments
This was a record quarter for United. GAAP EPS and revenue surpassed estimates. The Piedmont Bancorp acquisition, which closed in January 2025, contributed to increased average balances, income, and expense. Integrating Piedmont added approximately $2.4 billion in assets and generated higher accretion income from acquired loan portfolios compared to Q2 2024. The loan book rose by $2.3 billion in average net loans and loans held for sale year over year. Commercial loans and leases were $18.48 billion at June 30, 2025.
Net interest margin—a measurement of the difference between interest earned and interest paid, represented as a percentage of average earning assets—increased to 3.81%. This improvement stemmed from a larger volume of higher-yielding loans and stronger asset yields, including the added benefit from Piedmont's portfolio. Loan accretion income, which is the income recognized from newly-acquired loans, rose sharply (up $5.8 million from Q1 2025 and $9.4 million year over year), contributing about 8 basis points to the margin. Noninterest expense declined sequentially by $5.6 million, as merger-related integration costs tapered off (falling to $1.3 million from $11.3 million in Q1 2025).
From a regulatory and capital perspective, United remained well above requirements. The estimated risk-based capital ratio was 15.8% as of June 30, 2025. its Tier 1 common capital ratio stood at 13.4% as of June 30, 2025. FDIC insurance expense—a charge banks pay to insure customer deposits—fell in the first half of 2025 compared to the same period in 2024 due to the absence of a large one-time special assessment. United repurchased approximately 981,000 shares at an average price of $33.17 during the second quarter. During the first half of 2025, United repurchased approximately 1.5 million shares at an average price of $33.81. Book value per share and tangible book value per share increased compared to the prior year.
Cost control showed clear results, with the efficiency ratio improving to 48.37% from 52.66% a year earlier—a sign of increased operational efficiency as revenue outpaced expense growth. The bank held headcount at 2,760 full-time employees as of June 30, 2025, an increase from the previous year mainly attributable to acquisitions. Personnel expenses increased but were offset by lower merger-related outlays and improved incentives connected to mortgage activity. The quarterly dividend was unchanged at $0.37 per share.
Asset Quality, Lending, and Challenges
Asset quality remained healthy though some risk trends warrant attention. Non-performing loans—loans that are not generating interest due to borrower financial difficulty—stood at $68.3 million (0.28% of loans), up modestly from a year ago but below December levels. The net charge-off rate, or loans written off as uncollectible minus recoveries, rose to 0.14% on an annualized basis, compared to 0.02% a year earlier. Total allowance for loan losses, the reserve set aside to cover potential defaults, increased to $308.0 million or 1.28% of loans, reflecting both new loans from Piedmont and some higher loss provisioning earlier in the year.
United's loan portfolio continued to shift in line with its strategy. Consumer loans shrank mainly due to a decrease in indirect automobile financing. Residential real estate loans increased by $236.1 million, or 4.48%. Total deposits ended the period at $26.34 billion as of June 30, 2025, up from $23.07 billion a year earlier. Despite rising competition in its key markets, United’s expansion into Atlanta is aimed at capturing new commercial and retail clients in the Southeast.
Efficiency improvements stand out. The efficiency ratio fell by 4.29 percentage points year-over-year, declining from 52.66% in Q2 2024 to 48.37% in Q2 2025. Management noted that merger outlays drove expenses earlier in the year but declined to $1.3 million by the end of the quarter.
A notable one-time event in Q1 2025 included elevated merger expenses and loss provisions tied to the Piedmont deal—close to $30.0 million pre-tax and about $0.17 per diluted share—though those expenses are now diminishing. The company’s share repurchase activity and stable dividend indicate steady capital deployment policies.
Looking Ahead: Guidance and Watch Points
Management expressed confidence in the company’s ability to maintain its positive trajectory into the second half of fiscal 2025, citing benefits from the Atlanta market entry and ongoing cost control. However, leadership did not provide detailed numerical guidance for future quarters or the full year.
Investors may want to focus on three main areas in the coming quarters: the impact of rising charge-offs and non-performing assets on overall credit quality, the continuing integration and operational leverage from the Piedmont acquisition, and how United adapts to regulatory costs or competitive pressure in its newer Southeast markets. Dividend holders can expect the quarterly payout to remain at $0.37 per share, in line with the recent trend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
