On July 25, 2024, United Bankshares Inc (UBSI, Financial) released its 8-K filing announcing earnings for the second quarter of 2024. United Bankshares Inc is a financial holding company that provides banking services through its community banking and mortgage banking segments. Nearly all revenue comes from the community banking segment.
Performance Overview
United Bankshares Inc (UBSI, Financial) reported earnings of $96.5 million, or $0.71 per diluted share, for the second quarter of 2024. This result surpasses the analyst estimate of $0.64 per share. The company also reported an annualized return on average assets of 1.32%, return on average equity of 7.99%, and return on average tangible equity of 13.12%.
Net interest income for the quarter was $225.7 million, a slight decrease from $227.5 million in the same period last year. The net interest margin improved to 3.50% from 3.44% in the previous quarter. The provision for credit losses remained stable at $5.8 million.
Key Financial Achievements
United Bankshares Inc (UBSI, Financial) achieved several financial milestones in Q2 2024:
- Net interest income increased by $3.2 million from the previous quarter, driven by higher yields on loans and a decrease in long-term borrowings.
- Noninterest expense decreased by $6.0 million, primarily due to lower employee benefits and FDIC insurance expenses.
- The company recognized a $6.9 million gain on the VISA share exchange.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 | Q1 2024 |
|---|---|---|---|
| Net Interest Income | $225.7 million | $227.5 million | $222.5 million |
| Provision for Credit Losses | $5.8 million | $11.4 million | $5.7 million |
| Noninterest Income | $30.2 million | $35.2 million | $32.2 million |
| Noninterest Expense | $134.8 million | $135.3 million | $140.7 million |
| Net Income | $96.5 million | $92.5 million | $86.8 million |
Balance Sheet and Cash Flow
As of June 30, 2024, United Bankshares Inc (UBSI, Financial) reported total assets of $29.96 billion, with total deposits of $23.07 billion. The company's shareholders' equity stood at $4.86 billion. The allowance for loan and lease losses was $267.4 million, representing 1.24% of loans and leases.
Commentary and Analysis
"UBSI continues to consistently deliver exceptional results," stated Richard M. Adams, Jr., United’s Chief Executive Officer. "In the second quarter we saw increases in profitability, capital, loans, and deposits, as well as decreases in expenses and non-performing assets."
The company's performance in Q2 2024 highlights its ability to navigate a challenging economic environment while maintaining strong financial metrics. The increase in net interest income and the reduction in noninterest expenses are particularly noteworthy, as they demonstrate effective cost management and revenue generation strategies.
United Bankshares Inc (UBSI, Financial) also announced a definitive merger agreement with Piedmont Bancorp, Inc., which is expected to close in late 2024 or early 2025. This merger will expand the company's asset base and geographic footprint, potentially driving further growth and profitability.
Overall, United Bankshares Inc (UBSI, Financial) has shown resilience and strategic acumen in its Q2 2024 performance, positioning itself well for future growth and stability in the banking sector.
Explore the complete 8-K earnings release (here) from United Bankshares Inc for further details.
