third quarter of 2026
Filed Oct 22, 2026United Bankshares, Inc. Announces Earnings for the Third Quarter of 2026
Record net interest income and a wider net interest margin supported earnings, but quarterly and year-over-year net income declined as noninterest income fell, expenses increased, and net charge-offs rose sequentially.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income, three months ended September 2026GAAP | $128.7M | – | – |
| Diluted earnings per share, three months ended September 2026GAAP | $ 0.94 | – | – |
| Basic earnings per share, three months ended September 2026GAAP | $ 0.94 | – | – |
| Net interest income, three months ended September 2026GAAP | $294.3M | increased $8.9 million, or 3% | increased $14.1 million, or 5% |
| Net interest income (FTE), three months ended September 2026non-GAAP | $295.0M | increased $8.9 million, or 3% | increased $14.1 million, or 5% |
| Net interest margin (FTE), three months ended September 2026non-GAAP | 3.86 % | – | – |
| Interest spread, three months ended September 2026non-GAAP | 3.10 % | – | – |
| Provision for credit losses, three months ended September 2026GAAP | $6.24M | – | – |
| Total noninterest income, three months ended September 2026GAAP | $30.84M | decreased $7.7 million, or 20% | decreased $12.4 million, or 29% |
| Fees from trust services, three months ended September 2026GAAP | $5.12M | – | – |
| Fees from brokerage services, three months ended September 2026GAAP | $6.61M | – | – |
| Fees from deposit services, three months ended September 2026GAAP | $10.08M | – | – |
| Bankcard fees and merchant discounts, three months ended September 2026GAAP | $2.23M | – | – |
| Income from mortgage banking activities, three months ended September 2026GAAP | $1.28M | decreased $1.6 million | decreased $1.2 million |
| Net losses on investment securities, three months ended September 2026GAAP | −$348K | – | – |
| Other noninterest income, three months ended September 2026GAAP | $1.31M | decreased $2.7 million | decreased $1.1 million |
| Total noninterest expense, three months ended September 2026GAAP | $156.7M | increased $2.0 million, or 1% | increased $10.0 million, or 7% |
| Employee compensation, three months ended September 2026GAAP | $69.39M | increased $2.8 million | increased $5.3 million |
| Employee benefits, three months ended September 2026GAAP | $12.62M | decreased $3.7 million | decreased $2.0 million |
| Expense for the reserve for unfunded loan commitments, three months ended September 2026GAAP | $2.85M | increased $2.7 million | – |
| Income before income taxes, three months ended September 2026GAAP | $162.1M | – | – |
| Income taxes, three months ended September 2026GAAP | $33.44M | – | decreased $298 thousand, or less than 1% |
| Effective tax rate, three months ended September 2026GAAP | 20.62 % | – | – |
| Return on average assets, three months ended September 2026GAAP | 1.50 % | – | – |
| Return on average shareholders’ equity, three months ended September 2026GAAP | 9.24 % | – | – |
| Return on average tangible common equity, three months ended September 2026non-GAAP | 14.68 % | – | – |
| Efficiency ratio, three months ended September 2026other | 48.21 % | – | – |
| Net income, nine months ended September 2026GAAP | $384.3M | – | – |
| Diluted earnings per share, nine months ended September 2026GAAP | $ 2.77 | – | – |
| Net interest income, nine months ended September 2026GAAP | $862.1M | – | increased $47.4 million, or 6% |
| Net interest income (FTE), nine months ended September 2026non-GAAP | $864.4M | – | increased $47.3 million, or 6% |
| Net interest margin (FTE), nine months ended September 2026non-GAAP | 3.82 % | – | – |
| Provision for credit losses, nine months ended September 2026GAAP | $18.98M | – | – |
| Total noninterest income, nine months ended September 2026GAAP | $103.4M | – | decreased $804 thousand, or less than 1% |
| Total noninterest expense, nine months ended September 2026GAAP | $464.2M | – | – |
| Effective tax rate, nine months ended September 2026GAAP | 20.32 % | – | – |
| Return on average assets, nine months ended September 2026GAAP | 1.52 % | – | – |
| Return on average tangible common equity, nine months ended September 2026non-GAAP | 14.74 % | – | – |
| Assets, September 30 2026GAAP | $34.23B | – | – |
| Loans & leases, net of unearned income, September 30 2026GAAP | $25.46B | – | – |
| Total deposits, September 30 2026GAAP | $27.71B | – | – |
| Cash & cash equivalents, September 30 2026GAAP | $1.88B | – | – |
| Total borrowings, September 30 2026GAAP | $717.8M | – | – |
| Total shareholders’ equity, September 30 2026GAAP | $5.41B | – | – |
| Allowance for loan & lease losses, September 30 2026GAAP | $294.1M | – | – |
| Allowance for credit losses, September 30 2026GAAP | $334.2M | – | – |
| Net charge-offs, three months ended September 2026GAAP | $11.6M | – | – |
| Non-performing loans, September 30 2026GAAP | $109.9M | – | – |
| Non-performing assets, September 30 2026GAAP | $121.1M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- During the third quarter of 2026, United repurchased, under a previously announced stock repurchase plan, approximately 2.1 million shares of its common stock at an average price per share of $46.84.
- During the first nine months of 2026, United repurchased, under a previously announced stock repurchase plan, approximately 5.4 million shares of its common stock at an average price per share of $43.77.
- Cash dividends per common share were $ 0.38 for the three months ended September 2026, compared with $ 0.38 for the three months ended June 2026 and $ 0.37 for the three months ended September 2025.
- Common dividends were $ 51,998 for the three months ended September 2026 and $ 157,777 for the nine months ended September 2026.
- The dividend payout ratio was 40.40 % for the three months ended September 2026 and 41.06 % for the nine months ended September 2026.
What drove it
- Net interest income benefited sequentially from loan growth largely funded by deposit growth, strategic purchases of higher yielding investment securities throughout 2026, and higher market interest rates.
- Year-over-year net interest income benefited from a lower rate paid on average interest-bearing deposits, loan growth, and strategic purchases of higher yielding investment securities.
- Average net loans and loans held for sale increased $227.5 million, or 4% on an annualized basis, from the second quarter of 2026, and increased $887.3 million, or 4%, from the third quarter of 2025.
- The yield on average net loans and loans held for sale increased 7 basis points sequentially but decreased 18 basis points from the third quarter of 2025.
- Average investment securities increased $94.7 million sequentially and their yield increased 15 basis points sequentially.
- The rate paid on average interest-bearing deposits increased 4 basis points sequentially but decreased 33 basis points from the third quarter of 2025.
- Noninterest income declined due to net losses on investment securities, lower other noninterest income, and lower income from mortgage banking activities.
- Employee compensation rose due to higher salaries, strategic hiring, a full quarter impact of annual salary increases, and higher production-related commissions.
Concerns
- Net income was $ 128,704 in the third quarter of 2026, below $ 131,377 in the second quarter of 2026 and $ 130,748 in the third quarter of 2025.
- Net charge-offs were $ 11,600, or 0.18% on an annualized basis as a percentage of average loans & leases, net of unearned income, versus $ 5,058, or 0.08%, in the second quarter of 2026.
- The third-quarter provision for credit losses reflected $11.6 million of net charge-offs and a $5.4 million decrease in the allowance for loan & lease losses from the prior quarter-end.
- $6.3 million of third-quarter net charge-offs and the corresponding allowance decrease related to an individually evaluated commercial loan relationship for which the charged-off exposure was fully reserved as of the prior quarter-end.
- Total noninterest income was $ 30,845, down from $ 38,506 sequentially and $ 43,204 a year earlier.
- The efficiency ratio was 48.21 %, compared with 47.78 % in the second quarter of 2026 and 45.39 % in the third quarter of 2025.
- Tangible book value per share was $ 24.97 at September 30 2026, compared with $ 25.29 at June 30 2026.
What to watch
- The continuation of loan and deposit growth and the resulting impact on net interest income and the net interest margin.
- The rate paid on interest-bearing deposits and the yield on average net loans and loans held for sale.
- Credit performance following the $ 11,600 of third-quarter net charge-offs and the allowance for loan & lease losses of $ 294,146.
- Mortgage banking production and quarter-end valuations of mortgage derivatives and loans held for sale.
- Noninterest expense, particularly employee compensation and the reserve for unfunded loan commitments.
- The pace of repurchases under the previously announced stock repurchase plan.
Balance sheet and cash flow
- Cash & cash equivalents were $ 1,882,389 at September 30 2026, compared with $ 2,081,303 at June 30 2026 and $ 2,518,719 at September 30 2025.
- Total deposits were $ 27,710,734 at September 30 2026, compared with $ 27,170,747 at June 30 2026 and $ 26,883,520 at September 30 2025.
- Interest-bearing deposits were $ 20,886,181 and noninterest-bearing deposits were $ 6,824,553 at September 30 2026.
- Loans & leases, net of unearned income were $ 25,460,258 at September 30 2026, compared with $ 24,994,524 at June 30 2026 and $ 24,519,706 at September 30 2025.
- Investment securities were $ 3,841,941 at September 30 2026, compared with $ 3,659,031 at June 30 2026 and $ 3,359,524 at September 30 2025.
- Total borrowings were $ 717,821 at September 30 2026, comprising short-term borrowings of $ 184,810 and long-term borrowings of $ 533,011.
- The estimated risk-based capital ratio was 15.2% at September 30, 2026; estimated Common Equity Tier 1 capital, Tier 1 capital, and leverage ratios were 12.9%, 12.9%, and 11.1%, respectively.
Analysis
United reported third-quarter net income of $ 128,704 and diluted earnings per share of $ 0.94, compared with $ 131,377 and $ 0.95 in the second quarter of 2026 and $ 130,748 and $ 0.92 in the third quarter of 2025. The period produced return on average assets of 1.50 %, return on average shareholders’ equity of 9.24 %, and return on average tangible common equity of 14.68 %. All three quarterly returns were below the preceding quarter and prior-year quarter levels shown in the release.
Core spread income was the principal strength. GAAP net interest income reached $ 294,251, while FTE net interest income reached $ 294,964. The company described GAAP net interest income as a record $294.3 million, up $8.9 million, or 3%, sequentially and up $14.1 million, or 5%, year over year. The FTE net interest margin widened to 3.86 % from 3.81 % sequentially and 3.80 % a year earlier. Sequential loan growth, deposit growth, higher-yielding securities purchases, and higher market rates supported the result. The year-over-year funding benefit was a 33-basis-point reduction in the rate paid on average interest-bearing deposits, although the yield on average net loans and loans held for sale was 18 basis points lower year over year.
Noninterest lines offset part of that core-income advance. Total noninterest income fell to $ 30,845 from $ 38,506 sequentially and $ 43,204 a year earlier, with net losses on investment securities of $ (348), lower mortgage banking income of $ 1,283, and lower other noninterest income. Total noninterest expense increased to $ 156,714 from $ 154,715 sequentially and $ 146,741 a year earlier. Compensation and the reserve for unfunded loan commitments increased, partly offset by lower employee benefits. The efficiency ratio was 48.21 %, above both the sequential and prior-year figures reported.
Credit metrics were broadly stable in end-of-period problem-asset balances but charge-offs increased sequentially. Non-performing loans were $ 109,894, or 0.43 % of loans & leases, net of unearned income, and non-performing assets were $ 121,092, or 0.35 % of total assets. Net charge-offs were $ 11,600, including $6.3 million related to an individually evaluated commercial loan relationship that had been fully reserved at the prior quarter-end. The allowance for loan & lease losses declined to $ 294,146 from $ 299,504 at June 30 2026.
The balance sheet expanded, with total assets of $ 34,228,531, loans & leases, net of unearned income of $ 25,460,258, and total deposits of $ 27,710,734 at September 30 2026. United repurchased approximately 2.1 million shares during the quarter at an average price per share of $46.84 and paid a $ 0.38 cash dividend per common share. No forward financial guidance was provided in the release.
Management, verbatim
Record net interest income, an expanding net interest margin, and strong organic growth drove earnings in the third quarter of 2026.
Richard M. Adams, Jr., United’s Chief Executive Officer
Continuing to underpin our success are our disciplined expense control and credit underwriting cultures, as well as our ongoing focus on efficient capital allocation.
Richard M. Adams, Jr., United’s Chief Executive Officer
Not in the filing
stated, not guessed- Forward financial guidance was not provided.
- Previous-period outlook was not provided.
- Total revenue was not reported as a line item.
- Gross margin was not reported.
- Operating income was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Segment revenue was not reported.
- A consolidated cash flow statement was not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.