United Bankshares (UBSI) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $95.3 million ($0.70 per diluted share), with annualized ROA of 1.28% and ROE of 7.72%.

• Nine-month net income was $278.6 million, or $2.06 per diluted share, down from $286.92 million and $2.12 in the prior year.

• Profitability remained strong, with well-controlled expenses and continued growth in key metrics.

• Asset quality, liquidity, and capital levels remained robust.

• Merger with Piedmont Bancorp is expected to close late Q4 2024 or early Q1 2025, creating a $32 billion asset bank.

Financial highlights

• Net interest income for Q3 2024 was $230.3 million, up 2% sequentially and flat year-over-year.

• Noninterest income for Q3 2024 was $31.9 million, up 6% sequentially but down 5% year-over-year.

• Noninterest expense was $135.3 million, flat both sequentially and year-over-year.

• Provision for credit losses was $6.9 million, up from $5.8 million in Q2 2024 and $5.9 million in Q3 2023.

• Total deposits increased $1.01 billion or 4.42% since year-end 2023, reaching $23.83 billion.

Outlook and guidance

• Loan growth (excluding loans held for sale) expected in low single digits annualized for Q4 2024.

• Net interest income (non-FTE) projected at $908–$913 million for 2024; net interest margin to remain stable.

• Provision expense planned at $25 million for FY 2024; credit performance expected to outperform industry.

• Noninterest income guidance: $122–$126 million for 2024; noninterest expense (excluding merger costs): $547–$552 million.

• Effective tax rate estimated at ~20.5% for remainder of 2024.

• The Piedmont Bancorp merger is expected to close late Q4 2024 or early Q1 2025, pending regulatory approvals.

• United anticipates it can meet obligations over the next 12 months and has no material commitments for capital expenditures.

• Interest rate risk simulations show net interest income could increase 1.82% to 2.82% with a 100-200 bps rate rise over one year.