Regional banking company United Bankshares (NASDAQ: UBSI) reported revenue ahead of Wall Street’s expectations in Q2 CY2025, with sales up 19.6% year on year to $306 million. Its GAAP profit of $0.85 per share was 11.6% above analysts’ consensus estimates.
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United Bankshares (UBSI) Q2 CY2025 Highlights:
- Net Interest Income: $274.5 million vs analyst estimates of $267 million (21.6% year-on-year growth, 2.8% beat)
- Net Interest Margin: 3.8% vs analyst estimates of 3.7% (31 basis point year-on-year increase, 12.3 bps beat)
- Revenue: $306 million vs analyst estimates of $298.3 million (19.6% year-on-year growth, 2.6% beat)
- Efficiency Ratio: 48.4% vs analyst estimates of 50.2% (1.8 percentage point beat)
- EPS (GAAP): $0.85 vs analyst estimates of $0.76 (11.6% beat)
- Market Capitalization: $5.22 billion
“I’m excited to announce that the second quarter of 2025 was the strongest earnings quarter in our Company’s long history,” stated Richard M. Adams, Jr., United’s Chief Executive Officer.
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
From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions.
Thankfully, United Bankshares’s 6.9% annualized revenue growth over the last five years was decent. Its growth was slightly above the average bank company and shows its offerings resonate with customers.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. United Bankshares’s recent performance shows its demand has slowed as its annualized revenue growth of 1.7% over the last two years was below its five-year trend. 
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 year-on-year revenue growth of 19.6%, and its $306 million of revenue exceeded Wall Street’s estimates by 2.6%.
Net interest income made up 81.9% 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.
Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.
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 7.2% annually over the last two years from $20.30 to $23.32 per share.
Over the next 12 months, Consensus estimates call for United Bankshares’s TBVPS to grow by 6.7% to $24.89, mediocre growth rate.
Key Takeaways from United Bankshares’s Q2 Results
We enjoyed seeing United Bankshares beat analysts’ expectations across the board this quarter. Overall, we think this was a solid print with some key areas of upside. The stock remained flat at $36.66 immediately after reporting.
Is United Bankshares an attractive investment opportunity right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.
