United Bankshares Q1 Profit Improves, But Shy Of Street Estimates

(RTTNews) - United Bankshares, Inc. (UBSI), a bank holding company, on Wednesday reported a rise in net profit for the first-quarter, amidst a rise in net interest income and a decline in non-interest expenses. However, the company's earnings fell below the Street view.

Richard M. Adams, Jr., CEO of UBSI, said: "We continued to deliver strong financial performance, highlighted by a Return on Average Assets of 1.35%, a net interest margin of 3.63%, and an efficiency ratio of 51.46%..."

For the three-month period, the lender posted a net income of $98.3 million or $0.73 per share, compared with $81.7 million or $0.60 per share, registered for the first quarter of 2022.

On average, six analysts, polled by Thomson Reuters were expecting the bank to post income per share of $0.74. Analysts' estimates typically exclude special items.

Pre-tax income was at $122.755 million, higher than $101.762 million of previous year.

Net interest income moved up to $234.320 million from $191.502 million of a year ago. The increase in net interest income was primarily due to the impact of rising market interest rates on earning assets, organic loan growth and a change in the asset mix to higher earning assets.

Noninterest expenses slipped to $137.419 million from $139.175 million of 2022.