United Bankshares, Inc. (NASDAQ: UBSI) reported earnings of $128.7 million for the third quarter of 2026, a figure representing $0.94 per diluted share. The company, based in Washington, D.C., and Charleston, W.Va., attributed the results to record net interest income and strong organic growth.
The bank's annualized return on average assets stood at 1.50% for the period, while the annualized return on average shareholders' equity was 9.24%. United also reported an annualized return on average tangible common equity, a non-GAAP measure, of 14.68%. Richard M. Adams, Jr., the company's Chief Executive Officer, stated that disciplined expense control and credit underwriting cultures underpin the firm's success.
Net interest income reached a record $294.3 million in the third quarter of 2026, an increase of $8.9 million, or 3%, from the second quarter of 2026. Fully tax-equivalent net interest income, which adjusts for the tax-favored status of income from certain loans and investments, also rose by $8.9 million. The increase was primarily driven by loan growth funded by deposit growth, strategic purchases of higher-yielding investment securities throughout 2026, and higher market interest rates.
Average net loans and loans held for sale increased by $227.5 million, or 4% on an annualized basis, compared to the second quarter of 2026. The yield on these loans rose by 7 basis points over the same period. Average investment securities increased by $94.7 million, with their yield rising by 15 basis points. Meanwhile, average interest-bearing deposits grew by $164.8 million, or 3% on an annualized basis, while the rate paid on these deposits increased by 4 basis points.
The net interest margin for the third quarter of 2026 was 3.86%, up from 3.81% in the second quarter of 2026. The provision for credit losses totaled $6.2 million for the third quarter of 2026, compared to $5.0 million in the prior quarter. This provision reflected $11.6 million in net charge-offs and a $5.4 million decrease in the allowance for loan and lease losses from the prior quarter-end.
Noninterest income declined to $30.8 million in the third quarter of 2026, a drop of $7.7 million, or 20%, from the second quarter of 2026. This decrease was driven by net losses on investment securities of $348 thousand, compared to net gains of $2.8 million in the previous quarter. The losses were primarily due to net unrealized fair value losses on equity securities. Income from mortgage banking activities also fell by $1.6 million to $1.3 million, citing lower mortgage production volume and lower quarter-end valuations of mortgage derivatives.
Noninterest expense rose to $156.7 million in the third quarter of 2026, an increase of $2.0 million, or 1%, from the second quarter of 2026. Employee compensation increased by $2.8 million due to strategic hiring and full-quarter impacts of annual salary increases. This was partially offset by a $3.7 million decrease in employee benefits, driven by lower postretirement benefit costs and health insurance expenses.
Income tax expense for the third quarter of 2026 was $33.4 million, compared to $32.8 million in the second quarter of 2026. The effective tax rate for the third quarter of 2026 was 20.6%, up from 20.0% in the second quarter of 2026.
Compared to the third quarter of 2025, earnings were slightly lower at $128.7 million versus $130.7 million in the prior year period, though diluted earnings per share increased to $0.94 from $0.92.