United Bankshares reports earnings for Q3 and first nine months of 2024 | News, Sports, Jobs

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CHARLESTON — United Bankshares Inc. reported third quarter 2024 earnings of $95.3 million or $0.70 per diluted share. Third quarter 2024 results produced annualized returns on average assets, average equity and average tangible equity, a non-GAAP measure, of 1.28%, 7.72% and 12.59%, respectively.
“We are pleased to announce this quarter’s earnings,” said Richard M. Adams Jr., United’s chief executive. “It was another successful quarter for UBSI and we continue to perform at a high level. Profitability numbers remained strong, growth trends continued to increase and expenses were well controlled. Additionally, asset quality, liquidity and capital levels remain a source of strength.”
United announced during the second quarter that it has entered into a definitive merger agreement with Piedmont Bancorp Inc. The combined organization will have approximately $32 billion in assets and a network of more than 240 locations in eight states and Washington, DC. The merger is expected to close late. in the fourth quarter of 2024 or early in the first quarter of 2025. Earnings for the second quarter of 2024 were $96.5 million, or $0.71 per diluted share, and annualized returns on average assets, average equity and average tangible equity were 1.32%, 7.99%, and 13.12%, respectively. Earnings for the third quarter of 2023 were $96.2 million, or $0.71 per diluted share, and annualized returns on average assets, average equity and average tangible equity were 1.31%, 8, 14% and 13.71% respectively. Net interest income for the third quarter of 2024 was $230.3 million, an increase of $4.5 million, or 2%, from the second quarter. Tax-equivalent net interest income, a non-GAAP measure that adjusts for the tax-favored status of income from certain loans and investments, of $231.1 million for the third quarter of 2024, also increased up $4.5 million, or 2%, from the second quarter. . The increase in both categories was driven by an increase in average short-term investments, a higher yield on average net loans and loans held for sale, and a decrease in average long-term loans, partially offset by an increase in average performing deposits of interest, because as well as a higher average rate paid on deposits. Average short-term investments increased $457 million, or 49%, from the second quarter, primarily due to cash received from increased deposits. Average long-term loans decreased $541.8 million, or 42%, from the second quarter. Average interest-bearing deposits increased $659.2 million, or 4%, from the second quarter. The provision for loan losses was $6.9 million for the third quarter of 2024, compared to $5.8 million for the second quarter. Noninterest income for the third quarter of 2024 was $31.9 million, an increase of $1.7 million, or 6%, from the second quarter. The increase in non-interest income was driven by an increase in mortgage banking income of $643,000, as well as increases in several additional categories of non-interest income, none of which were material. The increase in mortgage banking income was primarily due to higher mortgage sales volume and a higher quarter-end valuation of mortgages held for sale. An increase in mortgage servicing income was largely offset by higher net losses on investment securities. Mortgage servicing income was $7.4 million for the third quarter, an increase of $6.6 million from the second quarter. During the third quarter of 2024, United sold its remaining mortgage servicing rights with a total outstanding principal balance of $1.1 billion for a gain of $7.1 million. Net losses on investment securities were $6.7 million in the third quarter, compared to $218 thousand in the second quarter. During the third quarter of 2024, United sold $196.7 million of available-for-sale investment securities at a loss of $6.9 million. Non-interest expense for the third quarter of 2024 of $135.3 million was flat from the second quarter, up $565,000 or less than 1%. A $1.5 million increase in other noninterest expense in the second quarter, driven by higher amounts of certain general operating expenses, was largely offset by smaller decreases in several other categories. Earnings for the third quarter of 2024 were $95.3 million, or $0.70 per diluted share, compared to earnings of $96.2 million, or $0.71 per diluted share, for the third quarter of 2023 Net interest income for the third quarter of 2024 of $230.3 million was flat from the third quarter of 2023, up $1.8 million or less than 1%. Tax-equivalent net interest income for the third quarter of 2024 was also flat from the third quarter of 2023, up $1.8 million or less than 1%. The slight increase in net interest income and equivalent net interest income was primarily due to a higher yield on average net loans and loans held for sale, a decrease in average long-term loans, organic loan growth and a increases in average short-term borrowing. long term investments. This was partially offset by the impact of the deposit rate revaluation and an increase in average interest-bearing deposits. Average earning assets for the third quarter of 2024 increased $363.7 million, or 1%, from the third quarter of 2023 due to a $610.4 million increase in average net loans and loans held for sale and a $535.2 million increase in average short-term investments partially offset by a $781.9 million decrease in average investment securities. Noninterest income for the third quarter of 2024 was $31.9 million, a decrease of $1.7 million, or 5%, from the third quarter of 2023. Mortgage Banking Income decreased by $3 million from the third quarter of 2023, primarily due to lower mortgage lending. credit origination and sales volume. This decrease in mortgage banking income was partially offset by increases in several categories of non-interest income, none of which were material. An increase in mortgage servicing income was largely offset by higher net losses on investment securities. Mortgage servicing income was $7.4 million for the third quarter of 2024, an increase of $6.5 million from the third quarter of 2023, driven by the previously mentioned $7.1 million gain on the sale of MSR s in the third quarter of 2024. Net losses on investment securities were $6.7 million for the third quarter of 2024, compared to $181,000 for the third quarter of 2023 due to the loss of $6.9 million $ above on the sale of AFS investment securities in the third quarter of 2024. Non-interest expense for the third quarter of 2024 was flat from the third quarter of 2023, up $109,000 or less than 1%. A $1.3 million increase in other noninterest expense compared to the third quarter of 2023, driven by higher amounts of certain general operating expenses, was largely offset by smaller decreases in several other noninterest expense categories interests. As of Sept. 30, United had consolidated assets of about $30 billion and is the 41st largest U.S. banking company by market capitalization. United is the parent company of United Bank, which comprises more than 225 offices located in West Virginia, Ohio, Virginia, Maryland, North Carolina, South Carolina, Pennsylvania, Georgia and Washington, DC. United shares are traded on the NASDAQ Global Select market under the ticker symbol “HIT.”