United Bankshares, Inc. (UBSI): History, Ownership, Mission, How It Works & Makes Money

How does a stalwart like United Bankshares, Inc. (UBSI) continue to thrive, posting impressive figures like a $98.1 million net income for the third quarter of 2024? It's a major regional force, boasting total assets approaching $29.6 billion by the end of September 2024, demonstrating resilience in a dynamic market. What fuels this enduring presence in the mid-Atlantic and Appalachian regions, and what can its journey teach us about building a successful financial institution? Dive deeper to understand the history, ownership, and operational engine driving UBSI's profitability.

United Bankshares, Inc. (UBSI) History

United Bankshares, Inc.'s Founding Timeline

Year established

The roots trace back to 1839 with the founding of The Northwestern Bank of Virginia.

Original location

Parkersburg, West Virginia served as the initial base of operations.

Founding team members

While specific founders from 1839 are historical figures, the modern era was significantly shaped by Richard M. Adams Sr. and later his son, Richard M. Adams Jr., who led the company as CEO for four decades until early 2024.

Initial capital/funding

Specific initial capital figures from 1839 are not readily available, reflecting the historical context of its founding era.

United Bankshares, Inc.'s Evolution Milestones

United Bankshares, Inc.'s Transformative Moments

Strategic Acquisitions as a Core Growth Engine

From its inception as a holding company, UBSI pursued a disciplined strategy of acquiring community banks and larger regional players. This approach consistently expanded its market presence across the Mid-Atlantic and Southeast, transforming it from a local West Virginia bank into a major regional financial institution with assets approaching $30 billion by 2024.

Expansion into Major Metropolitan Markets

Targeted moves into Washington D.C., Northern Virginia, and later the Carolinas were pivotal. These expansions shifted the bank's operational focus towards higher-growth urban and suburban areas, diversifying its loan portfolio and deposit base away from solely smaller, rural communities.

Commitment to Shareholder Returns

The company established a long-standing reputation for financial stability and rewarding shareholders. A key aspect of this was achieving a remarkable record of consecutive annual dividend increases, reaching 50 years by 2023, a streak maintained into 2024. This consistency built strong investor confidence. Understanding its financial health is crucial; you can explore more details here: Breaking Down United Bankshares, Inc. (UBSI) Financial Health: Key Insights for Investors.

Navigating Economic Cycles

Successfully managing through various economic downturns, including the 2008 financial crisis and the COVID-19 pandemic disruptions, without sacrificing profitability or stability solidified its reputation for sound risk management and operational resilience. This careful navigation allowed continued growth when competitors faltered.

United Bankshares, Inc. (UBSI) Ownership Structure

United Bankshares, Inc. operates as a publicly traded financial holding company, meaning its ownership is dispersed among various institutional and individual shareholders. This structure influences its governance and strategic direction, aligning decisions with shareholder interests while adhering to regulatory requirements.

United Bankshares, Inc.'s Current Status

As of the end of 2024, United Bankshares, Inc. is a publicly listed company. Its shares are traded on the NASDAQ Global Select Market under the ticker symbol UBSI.

United Bankshares, Inc.'s Ownership Breakdown

Ownership is predominantly held by large institutional investors, a common characteristic for established financial institutions. The following table provides an approximate breakdown based on available data towards the end of 2024:

United Bankshares, Inc.'s Leadership

The strategic direction and day-to-day operations are guided by an experienced executive team and board of directors. As of late 2024, the key leadership includes:

• Richard M. Adams, Jr.: Chief Executive Officer and Chairman
• W. Mark Tatterson: Executive Vice President and Chief Financial Officer
• Julie R. Gurtis: President
• Ross M. Draber: Executive Vice President and Chief Operating Officer

Understanding the leadership team is crucial as they execute the company's strategy and uphold its operational standards. You can learn more about the guiding principles here: Mission Statement, Vision, & Core Values of United Bankshares, Inc. (UBSI). The board provides oversight, ensuring accountability and alignment with long-term goals.

United Bankshares, Inc. (UBSI) Mission and Values

United Bankshares defines its identity through a commitment to service and core principles guiding its interactions with stakeholders. This focus shapes the bank's culture and long-term direction beyond simple financial metrics.

United Bankshares, Inc.'s Core Purpose

The bank articulates its fundamental reason for being through its stated mission and guiding values. These elements provide insight into the company's operational philosophy and strategic priorities. You can explore the Mission Statement, Vision, & Core Values of United Bankshares, Inc. (UBSI).

• Integrity: Upholding high ethical standards in all dealings.
• Teamwork: Collaborating effectively to achieve common goals.
• Excellence: Striving for superior performance and quality.
• Hard Work: Demonstrating dedication and diligence.

Official mission statement

United Bankshares' mission is centered on SERVICE: Excellence in service to our employees, our customers, our shareholders and our communities.

Vision statement

While not explicitly stated as a separate vision statement in most corporate communications, UBSI's forward-looking direction is implicitly tied to its mission of service and its goal of continued growth as a premier community bank across its footprint.

Company slogan

United Bankshares does not heavily promote one single, overarching slogan, instead emphasizing its core mission of SERVICE and its identity as a trusted community bank through its actions and communications.

United Bankshares, Inc. (UBSI) How It Works

United Bankshares operates as a regional bank holding company, primarily generating revenue through interest income on loans and investments, alongside fee income from various financial services. It gathers deposits through its extensive branch network and digital platforms, lending these funds to individuals and businesses while managing associated credit risk.

United Bankshares, Inc.'s Product/Service Portfolio

United Bankshares, Inc.'s Operational Framework

UBSI's operational model centers on traditional community banking principles, blending a significant physical presence with expanding digital capabilities. Value creation stems from attracting low-cost core deposits through approximately 250 branches and offering a diverse loan portfolio, driving net interest income, which formed the bulk of its revenue in 2024, estimated around $850 million. Key operational processes include:

• Loan Origination and Underwriting: Rigorous credit analysis for commercial and consumer loans, maintaining asset quality.
• Deposit Gathering: Leveraging branch network convenience and digital tools to attract stable funding sources.
• Treasury Management: Managing liquidity, interest rate risk, and the bank's investment portfolio.
• Fee Income Generation: Providing services like wealth management, mortgage banking, and deposit account fees, contributing roughly $170 million to 2024 revenues.
• Efficiency Management: Focusing on controlling noninterest expenses, targeting an efficiency ratio often below 60%.

The bank emphasizes relationship banking, empowering local managers to make decisions, fostering customer loyalty and deeper market penetration.

United Bankshares, Inc.'s Strategic Advantages

UBSI leverages several core strengths to compete effectively in the financial services market. Its significant market share in core operating regions across the Mid-Atlantic and Southeast provides a stable deposit base and ample lending opportunities. The bank has a long, successful history of integrating acquisitions, allowing it to expand its footprint and achieve economies of scale efficiently. Furthermore, a strong capital position, with regulatory capital ratios consistently above well-capitalized minimums, supports growth and resilience. This robust foundation attracts a specific type of stakeholder, detailed further here: Exploring United Bankshares, Inc. (UBSI) Investor Profile: Who’s Buying and Why? Its consistent dividend payment history also enhances its appeal to income-focused investors. Finally, a conservative credit culture has historically resulted in relatively strong asset quality compared to peers, particularly during economic downturns.

United Bankshares, Inc. (UBSI) How It Makes Money

United Bankshares primarily generates revenue through the interest earned on its loan portfolio and investment securities, supplemented by fees charged for various banking services. This traditional banking model focuses on gathering deposits and lending them out at a higher rate, capturing the net interest spread.

United Bankshares, Inc.'s Revenue Breakdown

Analyzing the revenue streams provides insight into the bank's core operations as of year-end 2023, reflecting the likely structure for 2024.

United Bankshares, Inc.'s Business Economics

The bank's economic engine relies heavily on managing the difference between the interest it earns on assets (loans, securities) and the interest it pays on liabilities (deposits, borrowings). This is captured by the Net Interest Margin (NIM). For the full year 2023, UBSI reported a NIM of 3.37%. Efficient operations are also crucial; the bank's efficiency ratio, which measures noninterest expense as a percentage of revenue, stood at 59.88% for 2023, indicating the cost to generate a dollar of revenue. Its strategy often aligns with community banking principles, focusing on building long-term customer relationships which support stable deposit gathering and loan origination, consistent with the Mission Statement, Vision, & Core Values of United Bankshares, Inc. (UBSI).

• Key drivers include loan portfolio growth, deposit acquisition costs, and fee generation from services like mortgage banking, trust services, and brokerage.
• Interest rate sensitivity is a major factor; rising rates can expand margins but may also increase funding costs and potentially dampen loan demand.

United Bankshares, Inc.'s Financial Performance

Assessing financial health involves looking at profitability, efficiency, and asset quality. For the fiscal year ending December 31, 2023, United Bankshares reported strong results reflective of its business model. Net income available to common shareholders was $338.7 million. Key profitability metrics included a Return on Average Assets (ROA) of 1.16% and a Return on Average Equity (ROE) of 8.47%. Asset quality remained robust, with nonperforming assets representing only 0.31% of total assets at year-end 2023, underscoring prudent risk management. These figures provide a baseline for evaluating performance trends into 2024.

United Bankshares, Inc. (UBSI) Market Position & Future Outlook

United Bankshares maintains a solid position as a prominent regional bank holding company, primarily serving the Mid-Atlantic and Southeast U.S. Its future outlook hinges on navigating the evolving interest rate environment while leveraging its consistent M&A strategy and strong community banking focus.

Competitive Landscape

Opportunities & Challenges

Industry Position

As of year-end 2024, United Bankshares stands as one of the larger regional banking institutions in the U.S., typically ranking among the top 50 bank holding companies by asset size, with assets hovering around the $30 billion mark. Its performance metrics, such as a Return on Assets (ROA) often near 1.1% and an efficiency ratio generally maintained below 60% in 2024, reflect sound operational management within its peer group. The bank's long history of dividend increases further solidifies its reputation for stability among regional players. Understanding its financial underpinnings is crucial; explore further insights here: Breaking Down United Bankshares, Inc. (UBSI) Financial Health: Key Insights for Investors. UBSI's industry standing is built upon:

• A consistent track record of successful mergers and integrations.
• Strong deposit market share in core legacy markets like West Virginia and Virginia.
• Maintaining solid capital ratios, exceeding regulatory minimums as observed through 2024.
• A diversified loan portfolio across commercial real estate, C&I, and residential mortgages.

While facing competition from much larger national banks and smaller community institutions, UBSI's established footprint and disciplined growth strategy position it as a significant and resilient competitor in the regional banking landscape heading into 2025.