Overview

• US regional bank reported record Q2 net income, up from prior year and prior quarter

• Net interest income for Q2 rose 4% yr/yr, driven by higher loans and lower deposit costs

• Company repurchased 1.5 mln shares in Q2 under previously announced buyback plan

Outlook

• United Bankshares did not provide specific financial guidance for upcoming quarters or the full year in press release

Result Drivers

• NET INTEREST INCOME - Growth in average net loans and a lower rate paid on interest-bearing deposits drove higher net interest income yr/yr

• NONINTEREST INCOME - Higher noninterest income was driven by gains on investment securities, including the sale of an unaffiliated company and a VISA share exchange

• EXPENSES - Noninterest expense rose due to higher employee compensation and benefits, mainly from salary increases, incentives, and postretirement costs

Company press release: ID:nBw3G5P2wa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Net Income		$131.38 mln
Q2 Net Interest Income		$285.31 mln
Q2 Credit Loss Provision		$4.96 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 $48.00, about 2.3% above its July 22 closing price of $46.91

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• July 22 - Norwood Financial posts record Q2 net income, net interest income

• July 22 - Northern Trust tops Q2 revenue estimates, raises dividend

• July 23 - Huntington Bancshares' quarterly profit rises on interest income boost

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