United Bankshares Q3 EPS beats estimates, helped by loan growth

United Bankshares

Thu 12:57

Overview
U.S. regional bank's Q3 adjusted EPS beat analyst expectations
Net interest income rose 5% yr/yr, driven by loan and deposit growth
Company repurchased 2.1 mln shares under previously announced buyback plan

Outlook
Company did not provide specific financial guidance or outlook for future quarters or full year in its press release

Result Drivers
NET INTEREST INCOME - Co said record net interest income and expanding net interest margin drove Q3 results, per CEO Richard M. Adams, Jr.
LOAN AND DEPOSIT GROWTH - Co attributed higher net interest income to loan growth funded by deposit growth and purchases of higher-yielding securities
NONINTEREST INCOME DECLINE - Co said noninterest income fell due to lower gains on investment securities and reduced mortgage banking activity

Company press release: ID:nBw2sLcYqa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
Beat
$0.94
$0.93 (5 Analysts)
Q3 Net Income
 
$128.7 mln
 
Q3 Net Interest Income
 
$294.25 mln
 
Q3 Credit Loss Provision
 
$6.24 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy."
Wall Street's median 12-month price target for United Bankshares, Inc. is $50.00, about 6% above its October 21 closing price of $47.18
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
Oct 21 - United Bancshares Q3 profit jumps on higher net interest income
Oct 19 - Zions Bancorp Q3 EPS rises 20% on improved credit quality
Oct 20 - KeyCorp Q3 revenue rises 8% to record, profit up 24%

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)