United Bankshares, Inc. (UBSI) Bundle
A Brief History of H3
As of 2024, H3 Company has demonstrated significant financial growth and operational developments. The following sections detail its financial performance, notable milestones, and market positioning.
Financial Performance Overview
For the third quarter of 2024, H3 reported a net income of $95.27 million, a slight decrease from $96.16 million in the same quarter of the previous year. The total net income for the first nine months of 2024 was $278.59 million, down from $286.92 million in 2023.
| Period | Net Income (in millions) | Change (%) |
|---|---|---|
| Q3 2024 | 95.27 | -0.93 |
| Q3 2023 | 96.16 | |
| First 9 months 2024 | 278.59 | -2.55 |
| First 9 months 2023 | 286.92 |
Balance Sheet Highlights
As of September 30, 2024, H3's total assets amounted to $29.86 billion, reflecting a decrease of $63.22 million from the previous year-end. This decline was primarily due to a $587.34 million drop in investment securities. However, cash and cash equivalents increased by $309.89 million, or 19.38%, indicating improved liquidity.
| Item | September 30, 2024 | December 31, 2023 | Change (%) |
|---|---|---|---|
| Total Assets | 29.86 billion | 29.93 billion | -0.21 |
| Cash and Cash Equivalents | 1.91 billion | 1.60 billion | 19.38 |
| Investment Securities | 3.24 billion | 3.79 billion | -14.24 |
Shareholder Equity
H3's total shareholders' equity stood at $4.97 billion as of September 30, 2024, reflecting a 4.12% increase from $4.77 billion at the end of 2023. The increase in equity was driven primarily by retained earnings, which rose by $127.96 million or 7.33%.
| Equity Component | September 30, 2024 (in millions) | December 31, 2023 (in millions) | Change (%) |
|---|---|---|---|
| Total Shareholders' Equity | 4,970 | 4,773 | 4.12 |
| Retained Earnings | 1,876 | 1,748 | 7.33 |
Market Position and Strategic Developments
H3 has maintained a strong market position despite fluctuations in the financial landscape. The company is actively engaged in managing interest rate risks, with a primary capital ratio of 17.49% as of September 30, 2024, compared to 16.79% at the end of 2023. This indicates a robust capital base that supports growth and operational resilience.
| Capital Ratios | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Primary Capital Ratio | 17.49% | 16.79% |
| Common Equity Tier 1 Ratio | 13.80% | 13.80% |
| Leverage Ratio | 11.73% | 11.73% |
Overall, H3 Company has navigated the complexities of the financial environment in 2024 while maintaining its commitment to growth, stability, and shareholder value.
A Who Owns United Bankshares, Inc. (UBSI)
Major Shareholders
As of 2024, the ownership structure of United Bankshares, Inc. (UBSI) is characterized by a diverse group of institutional and individual shareholders. The company has a total of approximately 142.57 million shares outstanding.
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | ~ 81 million | 57% (approx.) |
| Retail Investors | ~ 61.57 million | 43% (approx.) |
Top Institutional Shareholders
The following table outlines the top institutional shareholders of United Bankshares, Inc. as of September 30, 2024:
| Institution | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | ~ 12.5 million | 8.77% |
| BlackRock, Inc. | ~ 10.2 million | 7.15% |
| State Street Corporation | ~ 9.1 million | 6.38% |
| Wellington Management Co. LLP | ~ 6.5 million | 4.56% |
| Invesco Ltd. | ~ 5.4 million | 3.79% |
Shareholder Equity and Stock Performance
As of September 30, 2024, United Bankshares reported total shareholders' equity of $4.97 billion, which represents an increase of $196.58 million or 4.12% from the previous year. The company’s earnings for the first nine months of 2024 were $278.59 million, translating to a diluted earnings per share of $2.06.
Stock Information
The following table summarizes key stock information for United Bankshares, Inc. as of September 30, 2024:
| Metric | Value |
|---|---|
| Current Share Price | $34.85 |
| Market Capitalization | $4.97 billion |
| Dividend per Share | $1.11 (annualized) |
| Price-to-Earnings Ratio | 16.89 |
| 52-Week High | $37.50 |
| 52-Week Low | $30.00 |
Recent Developments
In 2024, United Bankshares announced a definitive merger agreement with Piedmont, which is expected to enhance the company’s market presence and operational efficiencies. The acquisition is seen as a strategic move to consolidate resources and expand the customer base.
Overall, the ownership structure of United Bankshares, Inc. reflects a healthy mix of institutional and retail investors, supported by strong financial performance and strategic growth initiatives.
United Bankshares, Inc. (UBSI) Mission Statement
Mission Overview
The mission statement of United Bankshares, Inc. emphasizes commitment to providing high-quality financial services while fostering a culture of honesty, integrity, and respect. It aims to enhance shareholder value while serving the needs of its clients and communities.
Core Values
- Customer Focus: Delivering exceptional service to clients.
- Integrity: Upholding ethical standards in all operations.
- Community Engagement: Supporting local initiatives and economic development.
- Employee Development: Investing in the growth and well-being of employees.
Financial Performance Metrics
As of September 30, 2024, United Bankshares reported significant financial metrics that reflect its operational efficiency and market position.
| Metric | Value |
|---|---|
| Total Assets | $29.86 billion |
| Total Liabilities | $24.86 billion |
| Total Shareholders' Equity | $4.97 billion |
| Net Income (Q3 2024) | $95.27 million |
| Return on Average Assets (Q3 2024) | 1.28% |
| Return on Average Shareholders' Equity (Q3 2024) | 7.72% |
| Diluted Earnings per Share (Q3 2024) | $0.70 |
| Cash Dividends Declared (Q3 2024) | $50.21 million |
Operational Highlights
United Bankshares has seen a notable increase in its operational metrics, reflecting its commitment to growth and stability.
| Category | Value |
|---|---|
| Net Interest Income (Q3 2024) | $230.26 million |
| Provision for Credit Losses (Q3 2024) | $6.94 million |
| Noninterest Income (Q3 2024) | $31.94 million |
| Noninterest Expense (Q3 2024) | $135.34 million |
| Income Before Income Taxes (Q3 2024) | $119.92 million |
| Income Tax Expense (Q3 2024) | $24.65 million |
Shareholder Value and Dividend Policy
United Bankshares maintains a strong focus on returning value to shareholders through regular dividends and share repurchase programs.
| Dividend Metrics | Value |
|---|---|
| Cash Dividends per Share (2024) | $1.11 |
| Total Cash Dividends (9 months 2024) | $150.63 million |
| Share Repurchase (2024) | Various amounts, ongoing |
Outlook and Strategic Goals
Looking ahead, United Bankshares aims to enhance its market presence through strategic acquisitions and a focus on digital transformation to improve customer engagement and operational efficiency.
How United Bankshares, Inc. (UBSI) Works
Financial Overview
As of September 30, 2024, United Bankshares, Inc. (UBSI) reported total assets of $29.86 billion, a decrease of $63.22 million or less than 1% from December 31, 2023. Total liabilities decreased by $259.80 million or 1.03% during the same period.
Income Statement Highlights
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Interest Income | $382.72 million | $356.91 million | $1.13 billion | $1.03 billion |
| Interest Expense | $152.47 million | $128.46 million | $447.63 million | $341.91 million |
| Net Interest Income | $230.26 million | $228.45 million | $678.46 million | $690.23 million |
| Provision for Credit Losses | $6.94 million | $5.95 million | $18.46 million | $24.28 million |
| Noninterest Income | $31.94 million | $33.66 million | $94.38 million | $101.58 million |
| Noninterest Expense | $135.34 million | $135.23 million | $410.86 million | $407.94 million |
| Net Income | $95.27 million | $96.16 million | $278.59 million | $286.92 million |
Key Ratios
United's annualized return on average assets for Q3 2024 was 1.28%, compared to 1.31% in Q3 2023. The return on average shareholders' equity was 7.72% in Q3 2024 versus 8.14% in Q3 2023.
Shareholder Information
As of September 30, 2024, total shareholders' equity was $4.97 billion, an increase of $196.58 million or 4.12% from December 31, 2023. Cash dividends declared were $0.37 per share, amounting to $50.21 million for Q3 2024 and $150.63 million for the first nine months of 2024.
Loan and Credit Quality
The allowance for loan and lease losses was $270.77 million as of September 30, 2024, compared to $259.24 million at year-end 2023. The total nonperforming loans amounted to $65.24 million, up from $45.50 million at December 31, 2023.
Investment Securities
At September 30, 2024, United’s available-for-sale investment securities had an amortized cost of $852.12 million, with an estimated fair value of $822.82 million. The portfolio included:
| Type of Securities | Amortized Cost | Estimated Fair Value |
|---|---|---|
| Trust Preferred Securities | $16.41 million | $14.61 million |
| Asset-Backed Securities | $553.81 million | $550.60 million |
| Other Corporate Securities | $281.90 million | $257.61 million |
Liquidity Position
United maintained liquidity with an unused borrowing capacity of approximately $8.19 billion from the Federal Home Loan Bank as of September 30, 2024. The company’s cash and cash equivalents increased by $309.89 million or 19.38% from year-end 2023.
Market Risks and Management
United’s asset/liability management function is focused on managing interest rate risk, which is critical to maintaining net interest income stability. As of September 30, 2024, the risk-based capital ratio was 16.18%, with Common Equity Tier 1 capital at 13.80%.
Recent Developments
In Q2 2024, United announced a merger agreement with Piedmont. Expenses related to the acquisition totaled $1.61 million for the first nine months of 2024.
Mortgage Banking Activities
For the third quarter of 2024, income from mortgage banking activities totaled $4.54 million, a decline of 39.86% year-over-year. The decrease was attributed to lower mortgage loan production, with mortgage loan sales of $171.32 million compared to $217.63 million in Q3 2023.
Conclusion on Operations
United Bankshares, Inc. continues to navigate a dynamic financial landscape, focusing on maintaining strong liquidity, managing credit quality, and pursuing strategic growth initiatives.
How United Bankshares, Inc. (UBSI) Makes Money
Revenue Streams
United Bankshares, Inc. (UBSI) generates revenue primarily through two main sources: net interest income and noninterest income.
Net Interest Income
Net interest income is derived from the difference between interest earned on loans and interest paid on deposits. For the third quarter of 2024, net interest income was $230.26 million, slightly increasing by $1.80 million or less than 1% from the same period in 2023. For the first nine months of 2024, net interest income totaled $678.46 million, reflecting a decrease of $11.77 million or 1.71% compared to the same period in 2023.
| Period | Net Interest Income ($ millions) | Interest Income ($ millions) | Interest Expense ($ millions) |
|---|---|---|---|
| Q3 2024 | 230.26 | 382.72 | 152.47 |
| Q3 2023 | 228.45 | 356.91 | 128.46 |
| 9M 2024 | 678.46 | 1,126.09 | 447.63 |
| 9M 2023 | 690.23 | 1,032.15 | 341.91 |
Noninterest Income
Noninterest income includes various fees and services. For the third quarter of 2024, noninterest income amounted to $31.94 million, a decline of $1.72 million compared to the same quarter of 2023. For the first nine months of 2024, noninterest income was $94.38 million, down from $101.58 million in 2023.
Components of Noninterest Income
The components of noninterest income include:
- Income from mortgage banking activities
- Bank-owned life insurance income
- Brokerage service fees
- Net gains on investment securities
Income from mortgage banking activities for Q3 2024 was $4.54 million, a decrease of 39.86% from Q3 2023. For the first nine months of 2024, income from this source was $13.74 million, down from $21.85 million in the same period in 2023.
Investment Securities
UBSI recorded a net loss on investment securities of $6.72 million for Q3 2024, compared to a net loss of $181,000 for Q3 2023. For the first nine months of 2024, net losses were $7.03 million, compared to $7.92 million for the same period in 2023.
Expenses
United's noninterest expenses were $135.34 million in Q3 2024, slightly up from $135.23 million in Q3 2023. For the first nine months of 2024, total noninterest expenses were $410.86 million, compared to $407.94 million in the prior year.
| Period | Noninterest Income ($ millions) | Noninterest Expense ($ millions) |
|---|---|---|
| Q3 2024 | 31.94 | 135.34 |
| Q3 2023 | 33.66 | 135.23 |
| 9M 2024 | 94.38 | 410.86 |
| 9M 2023 | 101.58 | 407.94 |
Provision for Credit Losses
For the third quarter of 2024, the provision for credit losses was $6.94 million, compared to $5.95 million in Q3 2023. For the first nine months of 2024, the provision was $18.46 million, down from $24.28 million in the previous year.
Net Income
Net income for Q3 2024 was $95.27 million, down from $96.16 million in Q3 2023. For the first nine months of 2024, net income was $278.59 million, compared to $286.92 million for the same period in 2023.
| Period | Net Income ($ millions) | Earnings Per Share ($) |
|---|---|---|
| Q3 2024 | 95.27 | 0.70 |
| Q3 2023 | 96.16 | 0.71 |
| 9M 2024 | 278.59 | 2.06 |
| 9M 2023 | 286.92 | 2.12 |
Return on Assets and Equity
United's annualized return on average assets for Q3 2024 was 1.28% and return on average shareholders’ equity was 7.72%. For the first nine months of 2024, the annualized return on average assets was 1.26% and return on average shareholders’ equity was 7.65%.
| Period | Return on Assets (%) | Return on Equity (%) |
|---|---|---|
| Q3 2024 | 1.28 | 7.72 |
| Q3 2023 | 1.31 | 8.14 |
| 9M 2024 | 1.26 | 7.65 |
| 9M 2023 | 1.31 | 8.27 |
Conclusion
United Bankshares, Inc. (UBSI) continues to generate revenue through its diversified streams, focusing on maintaining a solid balance between net interest income and noninterest income while managing expenses and credit losses effectively.
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Resources:
- United Bankshares, Inc. (UBSI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of United Bankshares, Inc. (UBSI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View United Bankshares, Inc. (UBSI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.