United Bankshares, Inc. (UBSI): 5 FORCES Analysis [Nov-2025 Updated]

You're digging into the true competitive standing of United Bankshares, Inc. as we close out 2025, so I've mapped out the five forces that really matter right now. Honestly, the landscape shows significant pressure: suppliers, particularly depositors, wield high power as industry funding costs hover near 2.03%, and rivalry is intense, with the bank's Q2 2025 Net Interest Margin of 3.81% becoming a key battleground metric amid rising charge-offs. But here's the silver lining: the threat of new entrants is low, given the massive capital and regulatory hurdles for a bank of its $33.41 billion asset size. Keep reading; this breakdown shows you exactly where United Bankshares, Inc. is winning and where it needs to defend its turf.

United Bankshares, Inc. (UBSI) - Porter's Five Forces: Bargaining power of suppliers

You're analyzing the supplier landscape for United Bankshares, Inc. (UBSI) as of late 2025. The power dynamic here isn't about widget makers; it's about where the bank gets its money, its technology, and its people. Honestly, the cost of money-deposits-is the first thing that jumps out.

Depositors' power is high as funding costs remain elevated, projected around 2.03% for the industry. That's significantly above the previous five-year average of 0.9%. For United Bankshares, Inc. itself, the cost of average interest-bearing deposits decreased 44 basis points from the third quarter of 2024 to the third quarter of 2025. Still, the bank's Net Interest Margin (NIM) settled at 3.80% for Q3 2025. Total deposits for United Bankshares, Inc. rose by $2.92 billion in Q3 2025, largely due to the Piedmont acquisition, and average interest-bearing deposits increased $415.5 million (or 2%) from Q2 2025 to Q3 2025. You see the pressure in the cost of funds.

Core technology providers (e.g., for AI, core systems) have moderate power due to high switching costs for banking infrastructure. Banks globally are expected to spend 4.7% more on technology in 2025 than in 2024. More than 60% of overall tech spend goes to "run-the-bank" activities, meaning core system dependency is sticky. Banks are moving to consolidate AI models onto single platforms, but the underlying core system replacement remains a monumental, costly undertaking.

Wholesale funding markets (e.g., Federal Home Loan Bank) maintain power in the current higher-for-longer interest rate environment. The Federal Home Loan Bank of Chicago, for example, extended its 5 basis point (bps) discount on qualifying advances through September 30, 2025. For context on rates, advances from one institution as of March 31, 2025, carried fixed interest rates ranging from 3.54% to 3.76%. This shows that while discounts exist, the baseline cost of this liquidity source is dictated by the prevailing rate structure.

The labor market for specialized talent, defintely in technology and risk management, exerts significant wage pressure. Retention is a major headache; 39% of banking leaders cite retaining top talent as their primary hiring challenge for 2025. Compensation expenses rose for 85% of banks last year, with a median 5% increase. Here's a quick look at what some of those specialized roles command in 2025:

Regulatory bodies (e.g., Fed, FDIC) hold ultimate power, dictating capital and liquidity requirements. Their influence is felt across the entire supplier base, from dictating data standards for tech vendors to setting capital buffers that influence how much United Bankshares, Inc. can borrow or lend. Compliance hiring saw a 30%+ increase over the past 18 months, driven by these external mandates.

The key supplier pressures for United Bankshares, Inc. can be summarized by looking at the cost of key inputs:

• Projected Industry Deposit Cost (2025): 2.03%
• United Bankshares, Inc. Q3 2025 NIM: 3.80%
• Increase in AI-specific roles hired (H1 2025): 13%
• FHLB Advance Rates (as of March 31, 2025): 3.54% to 3.76%
• Banks citing talent retention as primary challenge (2025): 39%

Finance: draft 13-week cash view by Friday.

United Bankshares, Inc. (UBSI) - Porter's Five Forces: Bargaining power of customers

For retail customers, the power dynamic is set by the ease of moving money, even if inertia is currently high in 2025. While U.S. savers showed less willingness to move money between banks as of mid-2025, the underlying mechanism for basic deposit accounts still implies low switching costs, which inherently increases customer leverage if they choose to act. The Federal Reserve's decision on October 29, 2025, to cut the federal funds rate by 25 basis points-bringing the target range to 3.75% to 4.00%-and the expectation of further cuts by the end of the year, puts pressure on United Bankshares, Inc. to manage deposit costs carefully.

Commercial borrowers face a more nuanced situation. United Bankshares, Inc. saw strong loan growth, led by the Georgia, North Carolina, and Central Virginia markets with annualized growth rates exceeding 20% in the third quarter of 2025. This demand suggests borrowers have some need for United Bankshares, Inc.'s lending capacity, but the competitive environment for rates remains a factor. The reported Net Interest Margin (NIM) for the third quarter of 2025 was 3.80%, a slight decrease from 3.81% in the second quarter of 2025, reflecting the ongoing management of asset yields against deposit costs.

Large corporate clients maintain the highest level of bargaining power. These entities, dealing with a bank that reported consolidated assets of approximately $33 billion as of September 30, 2025, can often bypass regional lending structures entirely. They have direct access to national banks and the broader capital markets for financing needs, meaning United Bankshares, Inc. must compete aggressively on terms for these relationships.

United Bankshares, Inc.'s relationship-based model in its Mid-Atlantic and Southeast markets, bolstered by the January 10, 2025, acquisition of Piedmont Bancorp, Inc., provides a slight buffer against pure price competition. This model aims to foster stickiness. Still, the pressure on deposit pricing is evident in the data. The cost of average interest-bearing deposits decreased by 44 basis points from the third quarter of 2024, indicating that while United Bankshares, Inc. is managing its cost of funds, the market environment dictates pricing to some degree.

Deposit customers retain significant power due to the structure of their holdings. The fact that time deposits have an average maturity of approximately 6 months means a large portion of the funding base is subject to relatively frequent repricing decisions. Furthermore, approximately ~12% of total deposits have interest rates tied to a floating rate index, making them immediately sensitive to the Fed's recent rate cuts. Smart customers will shift funds to higher-yielding alternatives, such as the high-yield savings accounts or Certificates of Deposit (CDs) that were still offering rates near 4.00% APY in late 2025, pressuring United Bankshares, Inc.'s deposit rates.

Here is a snapshot of key metrics related to United Bankshares, Inc.'s funding and profitability as of Q3 2025:

The bargaining power of customers is exerted through these financial levers:

• Retail customers can move funds to online banks offering rates near 4.00% APY on savings.
• Loan growth in key markets like Georgia was annualized above 20% in Q3 2025, showing some demand pull.
• Large clients can bypass United Bankshares, Inc. for capital markets access.
• Deposit costs are actively managed, evidenced by the 44 basis points drop in cost YoY.
• Approximately ~12% of deposits are directly tied to floating rates.

Finance: draft 13-week cash view by Friday.

United Bankshares, Inc. (UBSI) - Porter's Five Forces: Competitive rivalry

You're looking at the competitive landscape for United Bankshares, Inc. (UBSI) right now, and honestly, the rivalry is thick. This isn't a sleepy market; it's a fight for market share, especially among the regional banks that sit in that sweet spot of assets between $10 billion and $100 billion where UBSI now operates.

The strategic move to acquire Piedmont Bancorp in January 2025 definitely turned up the heat. That merger brought in assets that pushed United Bankshares, Inc.'s total assets to $33.41 billion as of late 2025, according to some reports, or at least $33 billion as of September 30, 2025. This expansion into new, desirable markets like Georgia means United Bankshares, Inc. is now directly challenging more established players in those regions, intensifying the rivalry across the board.

When you look at profitability, the Net Interest Margin (NIM) is a key metric where you see the pressure. For the second quarter of 2025, United Bankshares, Inc. posted a NIM of 3.81%. That number tells you how effectively they are managing the spread between what they earn on loans and what they pay on deposits, and peers are definitely watching that figure closely to gauge competitive pricing power.

Competition for loan volume is fierce, too. You can see it in the guidance; United Bankshares, Inc. is only projecting loan growth in the low to mid-single digits for the remainder of 2025. That modest outlook, despite the recent acquisition, suggests that winning new loan business requires aggressive pricing or taking on more risk than perhaps they'd like. Loan pipelines remain strong, but converting them is the real challenge.

Speaking of risk, the rising net charge-offs are a clear signal of aggressive lending rivalry. For the third quarter of 2025, net charge-offs hit $20.0 million. That's a significant jump from the $8.4 million seen in the second quarter of 2025. When charge-offs rise like that, it often means someone-maybe United Bankshares, Inc. or a competitor-is pushing the envelope on underwriting standards to win that loan growth, which is defintely a sign of high-stakes rivalry.

Here's a quick look at how some of these key competitive pressure points compare:

The pressure points you need to track as you assess this rivalry include:

• Loan pricing competitiveness in key markets.
• The ability to maintain NIM against deposit cost pressure.
• Credit quality trends, especially in commercial real estate.
• Competitors' reaction to United Bankshares, Inc.'s expanded footprint.

If onboarding takes 14+ days, churn risk rises, and in this competitive environment, slow execution on integrating Piedmont's loan book could give rivals an opening.

Finance: draft 13-week cash view by Friday.

United Bankshares, Inc. (UBSI) - Porter's Five Forces: Threat of substitutes

You're looking at the competitive pressures outside the traditional banking box, and honestly, the threat of substitutes for United Bankshares, Inc. (UBSI) is significant, especially given the current interest rate environment as of late 2025. The substitutes aren't just other banks; they are entirely different financial vehicles.

FinTech firms offer specialized, lower-cost substitutes for payments, lending, and wealth management services. The pressure is real in the payments space, where banks risk losing substantial revenue to these agile competitors. Accenture estimates that banks could forfeit up to $280 billion in payments revenue to fintech companies by 2025. Furthermore, real-time payment systems are becoming the standard, with the total value of instant payments transactions projected to hit $60 trillion globally in 2025.

Money market funds (MMFs) and Treasury bills are strong substitutes for traditional bank deposits, especially in a high-rate environment. As of the week ended November 25, 2025, total money market fund assets reached $7.57 trillion. Retail MMF assets alone stood at $3.03 trillion. For context, United Bankshares, Inc. reported total assets of $33.40 billion as of September 30, 2025. The competition for deposits is stark when you compare the scale of these external cash pools to the bank's balance sheet.

Here's a quick look at the scale difference between United Bankshares, Inc.'s deposit base and the MMF market:

Non-bank lenders, like specialized mortgage companies and private credit funds, substitute for United Bankshares, Inc.'s commercial and consumer loan products. In the residential mortgage space, nonbank financial institutions accounted for 17 of the top 25 mortgage lenders in 2024. The nonbank share of total originations increased to 66.4% in the first quarter of 2025. Fannie Mae forecasted total originations to reach $1.9 trillion in 2025, a massive market where United Bankshares, Inc.'s loan portfolio stood at $24.21 billion as of Q3 2025.

The threat extends to asset management, where brokerage services and investment banks substitute for United Bankshares, Inc.'s wealth management and capital market offerings. While United Bankshares, Inc. reported record net income of $130.75 million for Q3 2025, the broader wealth management industry sees significant competition from firms that specialize purely in investment advisory services.

Also, peer-to-peer lending platforms and crowdfunding continue to bypass traditional bank intermediation for small business financing. The trend is toward disintermediation, where businesses seek capital directly from investors or specialized platforms, reducing reliance on the balance sheet lending United Bankshares, Inc. provides. This is evident in the growth of alternative funding channels that offer speed and specialized terms.

• FinTechs threaten to capture up to $280 billion in bank payments revenue by 2025.
• Digital wallets are the fastest-growing payment method globally.
• Nonbank lenders held 66.4% of mortgage originations in Q1 2025.
• MMF assets are over 220 times the size of United Bankshares, Inc.'s total assets.
• United Bankshares, Inc.'s annualized return on average assets for Q3 2025 was 1.57%.

If onboarding takes 14+ days, churn risk rises, especially when MMFs offer yields near 3.88% for government funds as of November 12, 2025. Finance: draft 13-week cash view by Friday.

United Bankshares, Inc. (UBSI) - Porter's Five Forces: Threat of new entrants

You're looking at the barriers a brand-new bank would face trying to set up shop against United Bankshares, Inc. (UBSI) in late 2025. Honestly, the hurdles are substantial, especially when you consider the regulatory environment.

Regulatory and capital requirements for a full-service bank with $33.407 billion in assets as of the third quarter of 2025 create a high barrier to entry. While UBSI itself is below the $100 billion asset threshold that triggers the most severe, recently finalized capital rules, a de novo bank must still meet stringent initial capitalization. For banks under the $250 billion threshold, the revised capital rules still require accounting for unrealized gains and losses on securities, which could lead to an estimated capital increase of roughly 3-4%. Starting from zero, raising that initial capital base, plus the necessary liquidity buffers, is a massive undertaking before you even book your first loan.

New entrants face a significant hurdle in building a physical branch network in UBSI's established Mid-Atlantic footprint. United Bank, the primary subsidiary, operates over 240 offices across a footprint including Washington, D.C., Virginia, West Virginia, Maryland, Pennsylvania, Ohio, North Carolina, South Carolina, and Georgia. Replicating that physical presence, which builds local trust and deposit relationships, requires immense upfront capital expenditure and time, which is a clear advantage for an incumbent like United Bankshares, Inc.

FinTechs are a constant threat, but they typically enter specific product niches rather than as full-service bank competitors. They focus on areas like payments, lending platforms, or digital onboarding. They don't usually start by trying to become the primary, full-service banking relationship for a broad customer base, which is UBSI's core business.

The cost of new core banking technology and compliance infrastructure is prohibitively high for a de novo bank. Implementing a modern core system isn't cheap; for a vendor like FIS, the implied average annual spend per institution can range from $290,000 to $1 million. Remember, that's just the recurring software cost; the initial setup, integration with payment networks, and customization for compliance can easily run into the millions. What this estimate hides is the cost of legacy system replacement for incumbents, which can see their Total Cost of Ownership (TCO) underestimated by up to 80%.

M&A consolidation in the regional bank sector, like United Bankshares, Inc.'s own growth strategy, limits the opportunity for new, smaller players. The industry is actively consolidating to gain scale against rising regulatory and technology burdens. We saw 34 transactions announced in the first quarter of 2025 alone. This drive for scale means that established, well-capitalized players are more likely to acquire smaller banks than for a de novo institution to organically compete for market share. Here's the quick math: scale helps spread the fixed costs of compliance and technology over a larger revenue base.

Here is a quick look at the scale of the incumbent and the cost of entry:

The barriers are definitely structural, rooted in regulation, physical scale, and technology investment.

Finance: draft 13-week cash view by Friday.