United Bankshares' Net Interest Margin Widens to 3.86%

The Tip Desk · October 27, 2026 · 3 min read

Record net interest income of $294.3 million lifted the margin 5 bps from 3.81% as loans, securities and higher market rates more than offset a 4 bps rise in deposit costs.

United Bankshares, Inc. (UBSI), a financial services company with consolidated assets of approximately $34 billion as of September 30, 2026, posted record net interest income of $294.3 million in the third quarter of 2026, up $8.9 million, or 3%, from the second quarter after a smaller $2.8 million, or 1%, sequential increase in the prior quarter.

The net interest margin expanded 5 bps to 3.86% from 3.81% in the second quarter, after a 1 bps expansion to 3.81% from 3.80% in the first quarter. Chief Executive Officer Richard M. Adams, Jr. said record net interest income, an expanding net interest margin, and strong organic growth drove earnings.

Average net loans and loans held for sale increased $227.5 million, or 4% on an annualized basis, from the second quarter, and the yield on those loans rose 7 bps. Average investment securities increased $94.7 million and the yield on average investment securities increased 15 bps. The company said the increase in net interest income was primarily due to loan growth that was largely funded by deposit growth, strategic purchases of higher-yielding investment securities throughout 2026, and higher market interest rates.

Average interest-bearing deposits increased $164.8 million, or 3% on an annualized basis, from the second quarter. The rate paid on average interest-bearing deposits increased 4 bps.

Earnings were $128.7 million, or $0.94 a share, versus $131.4 million, or $0.95 a share, in the second quarter. Annualized returns on average assets, average shareholders’ equity, and average tangible common equity were 1.50%, 9.24%, and 14.68%.

Noninterest income fell $7.7 million, or 20%, to $30.8 million from the second quarter. Net losses on investment securities of $348 thousand replaced net gains of $2.8 million that had included a $5.9 million gain on the sale of an unaffiliated company, a $5.7 million VISA share-exchange gain, and $1.0 million of unrealized equity gains, partially offset by a $9.7 million loss on the sale of $81.0 million of available-for-sale securities. Other noninterest income was $1.3 million. Mortgage banking income was $1.3 million, which the company said reflected a lower quarter-end valuation of mortgage derivatives and loans held for sale and lower production volume.

Noninterest expense increased $2.0 million, or 1%, to $156.7 million from the second quarter. Employee compensation rose $2.8 million, which the company attributed to higher salaries from strategic hiring and a full quarter of annual increases, plus higher production-related commissions. The reserve for unfunded loan commitments rose $2.7 million on a larger increase in outstanding loan commitments. Employee benefits declined $3.7 million on lower postretirement and health insurance costs.

The provision for credit losses was $6.2 million, versus $5.0 million in the second quarter, reflecting $11.6 million of net charge-offs and a $5.4 million decrease in the allowance for loan and lease losses. Of the charge-offs, $6.3 million related to an individually evaluated commercial loan that was fully reserved as of the prior quarter-end. Net charge-offs were 0.18% on an annualized basis, versus 0.08% in the second quarter.

Non-performing loans were $109.9 million, or 0.43% of loans and leases, net of unearned income, at September 30, 2026, versus $110.6 million, or 0.44%, at June 30. The allowance was $294.1 million, or 1.16% of loans and leases, net of unearned income.

United repurchased approximately 2.1 million shares in the third quarter at an average price of $46.84. Estimated Common Equity Tier 1, Tier 1, and leverage ratios were 12.9%, 12.9%, and 11.1% at September 30, 2026.