United Bankshares (UBSI) Stock Forecast & Price Target

United Bankshares Inc. has demonstrated a strong performance, as indicated by a positive pre-provision net revenue (PPNR) that exceeded expectations by $0.15, driven by reduced expenses and an increase in net interest income (NII). The company also reported a notable increase in net interest margin (NIM), rising by 20 basis points to 3.69%, surpassing estimates, while core NIM improved 15 basis points to 3.61%. Looking ahead, projections for NII are favorable, with expectations of $1.062 billion and a slight increase in NIM, which suggests continued financial strength and operational efficiency.

United Bankshares Inc. is experiencing a downward revision in its loan and deposit growth guidance, now expected to range from low to mid-single digits, primarily due to persistently elevated payoffs. While non-performing assets (NPAs) have slightly improved, decreasing to 0.38%, the overall credit environment remains a concern with net charge-offs (NCOs) at 0.14%. These factors contribute to a bearish outlook, as lower growth metrics coupled with limited credit quality improvements could negatively impact future financial performance.