Regional banking company United Bankshares (NASDAQ: UBSI) reported revenue ahead of Wall Street’s expectations in Q3 CY2025, with sales up 23.1% year on year to $323.3 million. Its GAAP profit of $0.92 per share was 13.3% above analysts’ consensus estimates.
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United Bankshares (UBSI) Q3 CY2025 Highlights:
- Net Interest Income: $280.1 million vs analyst estimates of $278 million (21.7% year-on-year growth, 0.8% beat)
- Net Interest Margin: 3.8% vs analyst estimates of 3.7% (6.6 basis point beat)
- Revenue: $323.3 million vs analyst estimates of $307.5 million (23.1% year-on-year growth, 5.1% beat)
- Efficiency Ratio: 45.4% vs analyst estimates of 49.1% (372.6 basis point beat)
- EPS (GAAP): $0.92 vs analyst estimates of $0.81 (13.3% beat)
- Tangible Book Value per Share: $24.03 vs analyst estimates of $23.77 (5.3% year-on-year growth, 1.1% beat)
- Market Capitalization: $5.01 billion
Company Overview
With roots dating back to 1982 and a strong presence in the Mid-Atlantic region, United Bankshares (NASDAQ: UBSI) is a bank holding company that provides commercial and retail banking services through its United Bank subsidiary across multiple states.
Sales Growth
Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Unfortunately, United Bankshares’s 4.7% annualized revenue growth over the last five years was mediocre. This was below our standard for the banking sector and is a poor baseline for our analysis.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. United Bankshares’s annualized revenue growth of 5% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, United Bankshares reported robust year-on-year revenue growth of 23.1%, and its $323.3 million of revenue topped Wall Street estimates by 5.1%.
Net interest income made up 83.3% of the company’s total revenue during the last five years, meaning United Bankshares barely relies on non-interest income to drive its overall growth.
Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.
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Tangible Book Value Per Share (TBVPS)
Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions.
When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.
United Bankshares’s TBVPS grew at a mediocre 4.9% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 8.6% annually over the last two years from $20.39 to $24.03 per share.
Over the next 12 months, Consensus estimates call for United Bankshares’s TBVPS to grow by 6.7% to $25.64, mediocre growth rate.
Key Takeaways from United Bankshares’s Q3 Results
We were impressed by how significantly United Bankshares blew past analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 2.3% to $35.98 immediately following the results.
United Bankshares put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
