United Bankshares, Inc. Announces Record Earnings for the Year of 2025

“Our financial performance in 2025 was among the very best in our Company’s long history,” stated Richard M. Adams, Jr., United’s Chief Executive Officer. “We delivered record earnings, strong profitability, resilient credit, and robust capital and liquidity. Underpinning these results was our continued success driving high quality organic growth. As we look to the new year, we remain committed to our mission of excellence in service to our shareholders, customers, communities, and employees.”

Earnings for the fourth quarter of 2025 were $128.8 million, or $0.91 per diluted share. Fourth quarter of 2025 results produced annualized returns on average assets, average equity, and average tangible equity of 1.52%, 9.31%, and 14.86%, respectively. Earnings for the third quarter of 2025 were $130.7 million, or $0.92 per diluted share, and annualized returns on average assets, average equity, and average tangible equity were 1.57%, 9.58%, and 15.45%, respectively. As a result of the acquisition of Piedmont Bancorp, Inc. (“Piedmont”) on January 10, 2025, the fourth quarter and year of 2025 were impacted by increased levels of average balances, income, and expense as compared to the fourth quarter and year of 2024. Earnings for the fourth quarter of 2024 were $94.4 million, or $0.69 per diluted share, and annualized returns on average assets, average equity, and average tangible equity were 1.25%, 7.48%, and 12.03%, respectively. Earnings for the year of 2024 were $373.0 million, or $2.75 per diluted share, and returns on average assets, average equity, and average tangible equity were 1.26%, 7.61%, and 12.43%, respectively.

Fourth quarter of 2025 compared to the third quarter of 2025

Earnings for the fourth quarter of 2025 were $128.8 million, or $0.91 per diluted share, as compared to earnings of $130.7 million, or $0.92 per diluted share, for the third quarter of 2025.

Net interest income for the fourth quarter of 2025 was a record $287.5 million, an increase of $7.3 million, or 3%, from the third quarter of 2025. Tax-equivalent net interest income, a non-GAAP measure which adjusts for the tax-favored status of income from certain loans and investments, for the fourth quarter of 2025 increased $7.4 million, or 3%, from the third quarter of 2025. The increase in net interest income and tax-equivalent net interest income was driven by a lower average rate paid on deposits and loan growth partially offset by a lower yield on average net loans and loans held for sale and an increase in average interest-bearing deposits. The net interest spread increased 10 basis points to 3.04% for the fourth quarter of 2025 due to a 21 basis point decrease in the average cost of funds partially offset by an 11 basis point decrease in the average yield on earning assets. The cost of average interest-bearing deposits decreased 21 basis points to 2.63% for the fourth quarter of 2025. The yield on average net loans and loans held for sale decreased 8 basis points to 6.18% for the fourth quarter of 2025. Average net loans and loans held for sale increased $390.9 million from the third quarter of 2025 funded by an increase in average interest-bearing deposits of $399.2 million from the third quarter of 2025. The net interest margin was 3.83% and 3.80% for the fourth quarter of 2025 and the third quarter of 2025, respectively.

The provision for credit losses was $6.8 million for the fourth quarter of 2025 as compared to $12.1 million for the third quarter of 2025.

Noninterest income for the fourth quarter of 2025 was $30.9 million, a decrease of $12.3 million, or 28%, from the third quarter of 2025. Net losses on investment securities were $218 thousand for the fourth quarter of 2025 as compared to net gains on investment securities of $10.4 million for the third quarter of 2025. Net losses and gains on investment securities for the fourth quarter of 2025 and third quarter of 2025, respectively, were primarily due to changes in the fair value of equity securities. The remainder of the decrease in noninterest income from the third quarter of 2025 was driven by decreases in several other categories of noninterest income, none of which were significant.

Noninterest expense for the fourth quarter of 2025 was $151.7 million, an increase of $5.0 million, or 3%, from the third quarter of 2025. The expense for the reserve for unfunded loan commitments was $2.4 million for the fourth quarter of 2025 as compared to a net benefit of $3.2 million for the third quarter of 2025. The expense for the reserve for unfunded loan commitments for the fourth quarter of 2025 was primarily due to an increase in the outstanding balance of construction loan commitments. The net benefit in the expense for the reserve for unfunded loan commitments for the third quarter of 2025 was primarily due to a decrease in the modeled loss rate within certain loan portfolios partially offset by an increase in the outstanding balance of loan commitments from the prior quarter-end. Additionally, a $1.7 million decrease in employee benefits was largely offset by an increase in other noninterest expense of $1.5 million. The fluctuations in these noninterest expense categories were driven by certain general operating expenses, none of which were individually significant.

For the fourth quarter of 2025, income tax expense was $31.1 million, a decrease of $2.7 million from the third quarter of 2025. This decrease in income tax expense was primarily due to the impact of a lower effective tax rate and lower earnings. United’s effective tax rate was 19.4% and 20.5% for the fourth quarter of 2025 and third quarter of 2025, respectively. The lower effective tax rate was primarily due to the impact of provision to return adjustments in the fourth quarter of 2025.

Fourth quarter of 2025 compared to the fourth quarter of 2024

Earnings for the fourth quarter of 2025 were $128.8 million, or $0.91 per diluted share, as compared to earnings of $94.4 million, or $0.69 per diluted share, for the fourth quarter of 2024.

Net interest income for the fourth quarter of 2025 increased $54.8 million, or 24%, from the fourth quarter of 2024. Tax-equivalent net interest income increased $54.9 million, or 24%, from the fourth quarter of 2024. The increase in net interest income and tax-equivalent net interest income was primarily due to an increase in average earning assets, a lower average rate paid on deposits, and an increase in acquired loan accretion income. These increases to net interest income and tax-equivalent net interest income were partially offset by an increase in average interest-bearing deposits. Average earning assets increased $3.3 billion, or 12%, from the fourth quarter of 2024, driven by increases in average net loans and loans held for sale of $3.0 billion and average short-term investments of $497.3 million, partially offset by a decrease in average investment securities of $198.4 million. The increase in average loans from the fourth quarter of 2024 was driven by the Piedmont acquisition and organic loan growth. The cost of average interest-bearing deposits decreased 39 basis points from the fourth quarter of 2024. Acquired loan accretion income was $8.5 million for the fourth quarter of 2025 as compared to $2.0 million for the fourth quarter of 2024. Average interest-bearing deposits increased $2.5 billion, or 14%, from the fourth quarter of 2024. The net interest margin of 3.83% for the fourth quarter of 2025 was an increase of 34 basis points from the net interest margin of 3.49% for the fourth quarter of 2024.

The provision for credit losses was $6.8 million for the fourth quarter of 2025 as compared to $6.7 million for the fourth quarter of 2024.

Noninterest income for the fourth quarter of 2025 increased $1.6 million, or 6%, from the fourth quarter of 2024. The increase in noninterest income was primarily due to an increase in fees from brokerage services of $980 thousand driven by higher volume.

Noninterest expense for the fourth quarter of 2025 increased $17.5 million, or 13%, from the fourth quarter of 2024. Employee compensation increased $5.8 million from the fourth quarter of 2024 primarily due to higher employee headcount from the acquisition and higher employee incentives. The expense for the reserve for unfunded loan commitments was $2.4 million for the fourth quarter of 2025 as compared to a net benefit of $3.1 million for the fourth quarter of 2024. Other noninterest expense increased $2.3 million from the fourth quarter of 2024 due to a $2.4 million increase in tax credit amortization and higher amounts of certain general operating expenses partially offset by a decline of $1.3 million in merger-related expenses. Additionally, increases in equipment expense of $1.8 million, amortization of intangibles of $1.4 million, and net occupancy of $1.1 million were mainly attributable to the acquisition.

For the fourth quarter of 2025, income tax expense was $31.1 million as compared to $26.7 million for the fourth quarter of 2024. This increase of $4.4 million in income tax expense was driven by higher earnings partially offset by a lower effective tax rate. United’s effective tax rate was 19.4% and 22.0% for the fourth quarter of 2025 and fourth quarter of 2024, respectively. The effective tax rates for the fourth quarters of 2025 and 2024 reflect the impact of provision to return adjustments during each period.

Year of 2025 compared to the year of 2024

Earnings for the year of 2025 were $464.6 million, or $3.27 per diluted share, as compared to earnings of $373.0 million, or $2.75 per diluted share, for the year of 2024.

Net interest income for the year of 2025 increased $191.1 million, or 21%, from the year of 2024. Tax-equivalent net interest income for the year of 2025 increased $190.9 million, or 21%, from the year of 2024. The increase in net interest income and tax-equivalent net interest income was primarily due to an increase in average earning assets, a lower average rate paid on deposits, an increase in acquired loan accretion income, and a decrease in average long-term borrowings. These increases to net interest income and tax-equivalent net interest income were partially offset by an increase in average interest-bearing deposits. Average earning assets increased $3.0 billion, or 11%, from the year of 2024, driven by increases in average net loans and loans held for sale of $2.5 billion and average short-term investments of $896.6 million, partially offset by a decrease in average investment securities of $385.9 million. The cost of average interest-bearing deposits decreased 35 basis points from the year of 2024. Acquired loan accretion income was $33.7 million for the year of 2025 as compared to $9.3 million for the year of 2024. Average long-term borrowings decreased $472.6 million, or 46%, from the year of 2024. Average interest-bearing deposits increased $2.7 billion, or 16%, from the year of 2024. The net interest margin of 3.78% for the year of 2025 was an increase of 29 basis points from the net interest margin of 3.49% for the year of 2024.

The provision for credit losses was $53.9 million for the year of 2025, which included $18.7 million of provision recorded on purchased non-credit deteriorated (“non-PCD”) loans from Piedmont. The provision for credit losses was $25.2 million for the year of 2024.

Noninterest income for the year of 2025 was $135.2 million, an increase of $11.5 million, or 9%, from the year of 2024. The increase in noninterest income was driven by net gains on investment securities for the year of 2025 of $11.2 million as compared to net losses on investment securities for the year of 2024 of $7.7 million, a $2.5 million increase in fees from brokerage services, a $2.0 million increase in income from bank-owned life insurance (“BOLI”), and a $1.8 million increase in fees from deposit services. Partially offsetting these increases in noninterest income were a $9.0 million decrease in mortgage loan servicing income and a $6.5 million decrease in income from mortgage banking activities. Net gains on investment securities of $11.2 million for the year of 2025 were primarily due to net unrealized fair value gains on equity securities. Net losses on investment securities of $7.7 million for the year of 2024 included $16.0 million in losses on sales of available for sale (“AFS”) investment securities partially offset by a $6.9 million gain on the VISA share exchange. The increase in BOLI income was primarily due to the impact of higher market values of underlying investments and policies added from the acquisition. Increases in fees from brokerage services and in fees from deposit services were primarily due to higher volume. The decrease in mortgage loan servicing income was due to sales of mortgage servicing rights (“MSRs”) in 2024. The decrease in income from mortgage banking activities was primarily due to lower mortgage production in 2025.

Noninterest expense for the year of 2025 was $600.1 million, which included $12.7 million in merger-related expenses, while noninterest expense was $545.0 million for the year of 2024, which included $2.9 million in merger-related expenses. Employee compensation increased $17.4 million for the year of 2025 primarily due to $1.5 million in merger-related expenses, higher employee headcount mainly from the acquisition, and higher employee incentives partially offset by lower commissions driven by a decrease in mortgage production. Other noninterest expense increased $14.2 million, driven by $7.0 million in merger-related expenses recognized during the year of 2025 as compared to $2.9 million for the year of 2024, a $2.6 million increase in tax credit amortization, and higher amounts of certain other general operating costs. The expense for the reserve for unfunded loan commitments for the year of 2025 increased $10.0 million from the year of 2024 due in large part to $4.1 million in merger-related expenses from the Piedmont acquisition. Additionally, increases in several other categories of noninterest expense mainly from the acquisition were partially offset by a $2.7 million decrease in Federal Deposit Insurance Corporation (“FDIC”) insurance expense primarily related to the special assessment and a $2.4 million decrease in mortgage loan servicing expense due to the aforementioned sales in 2024.

For the year of 2025, income tax expense was $118.8 million as compared to $91.6 million for the year of 2024. The increase of $27.2 million was primarily due to higher earnings and a higher effective tax rate. United’s effective tax rate was 20.4% for the year of 2025 and 19.7% for the year of 2024. The effective tax rates for the years of 2025 and 2024 reflect the impact of provision to return adjustments during each period. Additionally, the effective tax rate for the year of 2024 reflects the impact of discrete tax benefits recognized in the second quarter of 2024.

Credit Quality

At December 31, 2025, non-performing loans (“NPLs”) were $101.5 million, or 0.41% of loans & leases, net of unearned income. Total non-performing assets (“NPAs”) were $110.3 million, including other real estate owned (“OREO”) of $8.9 million, or 0.33% of total assets at December 31, 2025. At September 30, 2025, NPLs were $116.9 million, or 0.48% of loans & leases, net of unearned income. Total NPAs were $123.8 million, including OREO of $6.9 million, or 0.37% of total assets at September 30, 2025. At December 31, 2024, NPLs were $73.4 million, or 0.34% of loans & leases, net of unearned income. Total NPAs were $73.7 million, including OREO of $327 thousand, or 0.25% of total assets at December 31, 2024.

As of December 31, 2025, the allowance for loan & lease losses was $297.5 million, or 1.20% of loans & leases, net of unearned income. At September 30, 2025, the allowance for loan & lease losses was $300.1 million, or 1.22% of loans & leases, net of unearned income. The decrease in the allowance for loan and lease losses from September 30, 2025, to December 31, 2025, was driven by improved collateral valuations of certain individually assessed loans and resolutions of certain individually assessed loans. At December 31, 2024, the allowance for loan & lease losses was $271.8 million, or 1.25% of loans & leases, net of unearned income. During the first quarter of 2025, United recorded an allowance for loan & lease losses on acquired Piedmont non-PCD loans of $18.7 million and on acquired Piedmont purchased credit deteriorated (“PCD”) loans of $17.5 million.

Net charge-offs were $9.3 million, or 0.15% on an annualized basis as a percentage of average loans & leases, net of unearned income for the fourth quarter of 2025. Net charge-offs were $20.0 million, or 0.33% on an annualized basis as a percentage of average loans & leases, net of unearned income for the third quarter of 2025. Net charge-offs were $5.6 million, or 0.10% on an annualized basis as a percentage of average loans & leases, net of unearned income for the fourth quarter of 2024. Net charge-offs were $45.7 million, or 0.19% on an annualized basis as a percentage of average loans & leases, net of unearned income for the year of 2025. Net charge-offs were $12.5 million, or 0.06% on an annualized basis as a percentage of average loans & leases, net of unearned income for the year of 2024.

Capital

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 15.7% at December 31, 2025, while estimated Common Equity Tier 1 capital, Tier 1 capital, and leverage ratios are 13.4%, 13.4%, and 11.3%, respectively. The regulatory requirements for a well-capitalized financial institution are a risk-based capital ratio of 10.0%, a Common Equity Tier 1 capital ratio of 6.5%, a Tier 1 capital ratio of 8.0%, and a leverage ratio of 5.0%.

During the fourth quarter of 2025, United repurchased, under previously announced stock repurchase plans, approximately 1.3 million shares of its common stock at an average price per share of $36.49. During the year of 2025, United repurchased, under previously announced stock repurchase plans, approximately 3.6 million shares of its common stock at an average price per share of $35.24. United did not repurchase any shares of its common stock during 2024.

About United Bankshares, Inc.

United Bankshares, Inc. (NASDAQ: UBSI) is a financial services company with consolidated assets of approximately $34 billion as of December 31, 2025. United is the 41st largest banking company in the U.S. based on market capitalization. It is the parent company of United Bank, which comprises over 240 offices located across Washington, D.C., Virginia, West Virginia, Maryland, North Carolina, South Carolina, Ohio, Pennsylvania, and Georgia. For more information, visit ubsi-inc.com.

Cautionary Statements

The Company is required under generally accepted accounting principles to evaluate subsequent events through the filing of its December 31, 2025 consolidated financial statements on Form 10-K. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of December 31, 2025 and will adjust amounts preliminarily reported, if necessary.

Use of non-GAAP Financial Measures

This press release contains certain financial measures that are not recognized under U.S. generally accepted accounting principles ("GAAP"). Generally, United has presented these “non-GAAP” financial measures because it believes that these measures provide meaningful additional information to assist in the evaluation of United’s results of operations or financial position. Presentation of these non-GAAP financial measures is consistent with how United’s management evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in the banking industry.

Specifically, this press release contains certain references to financial measures identified as tax-equivalent (FTE) net interest income, average tangible equity, return on average tangible equity, and tangible book value per share. Management believes these non-GAAP financial measures to be helpful in understanding United’s results of operations or financial position.

Net interest income is presented in this press release on a tax-equivalent basis. The tax-equivalent basis adjusts for the tax-favored status of income from certain loans and investments. Although this is a non-GAAP measure, United’s management believes this measure is more widely used within the financial services industry and provides better comparability of net interest income arising from taxable and tax-exempt sources. United uses this measure to monitor net interest income performance and to manage its balance sheet composition. The tax-equivalent adjustment combines amounts of interest income on federally nontaxable loans and investment securities using the statutory federal income tax rate of 21%.

Tangible equity is calculated as GAAP total shareholders’ equity minus total intangible assets. Tangible equity can thus be considered the most conservative valuation of the company. Tangible equity is also presented on a per common share basis and considering net income, a return on average tangible equity. Management provides these amounts to facilitate the understanding of as well as to assess the quality and composition of United’s capital structure. By removing the effect of intangible assets that result from merger and acquisition activity, the “permanent” items of equity are presented. These measures, along with others, are used by management to analyze capital adequacy and performance.

Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as reconciliation to that comparable GAAP financial measure can be found in the attached financial information tables to this press release. Investors should recognize that United’s presentation of these non-GAAP financial measures might not be comparable to similarly titled measures at other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and United strongly encourages a review of its condensed consolidated financial statements in their entirety.

Forward-Looking Statements

In this report, we have made various statements regarding current expectations or forecasts of future events, which speak only as of the date the statements are made. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are also made from time-to-time in press releases and in oral statements made by the officers of the Company. Forward-looking statements can be identified by the use of the words “expect,” “may,” “could,” “intend,” “project,” “estimate,” “believe,” “anticipate,” and other words of similar meaning. Such forward-looking statements are based on assumptions and estimates, which although believed to be reasonable, may turn out to be incorrect. Therefore, undue reliance should not be placed upon these estimates and statements. United cannot assure that any of these statements, estimates, or beliefs will be realized and actual results may differ from those contemplated in these “forward-looking statements.” The following factors, among others, could cause the actual results of United’s operations to differ materially from its expectations: (1) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve and the trade and tariff policies; (2) general competitive, economic, political and market conditions and other factors that may affect future results of United, including changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; customer borrowing, repayment, investment and deposit practices; the impact, extent and timing of technological changes; capital management activities; and other actions of the Federal Reserve Board and legislative and regulatory actions and reforms; (3) deposit attrition, client loss or revenue loss following completed mergers or acquisitions that may be greater than anticipated; (4) regulatory change risk resulting from new laws, rules, regulations, or accounting principles, including, without limitation, the possibility that regulatory agencies may require higher levels of capital above the current regulatory-mandated minimums and the possibility of changes in accounting standards, policies, principles and practices; (5) the cost and effects of cyber incidents or other failures, interruptions, or security breaches of United’s systems and those of our customers or third-party providers; (6) competitive pressures on product pricing and services; (7) success, impact, and timing of United’s business strategies, including market acceptance of any new products or services; (8) volatility and disruptions in global capital and credit markets; (9) operational, technological, cultural, regulatory, legal, credit and other risks associated with the exploration, consummation and integration of potential future acquisitions; (10) catastrophic events such as hurricanes, tornados, earthquakes, floods or other natural or human disasters, including public health crises and infectious disease outbreaks, as well as any government actions in response to such events; (11) geopolitical risk from terrorist activities and armed conflicts that may result in economic and supply disruptions, and loss of market and consumer confidence; (12) the risks of fluctuations in market prices for United common stock that may or may not reflect economic condition or performance of United; and (13) the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations. For more information about factors that could cause actual results to differ materially from United’s expectations, refer to its reports filed with the Securities and Exchange Commission, including the discussion under “Risk Factors” in the Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov. Further, any forward-looking statement speaks only as of the date on which it is made, and United undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. You are advised to consult further disclosures United may make on related subjects in our filings with the SEC.