United Bankshares posted first-quarter 2026 earnings of $124.2 million, or $0.89 a diluted share, down from $128.8 million, or $0.91 a share, in the fourth quarter of 2025, but well above the $84.3 million, or $0.59 a share, reported a year earlier.
Net interest income fell to $282.5 million from $287.4 million in the prior quarter, a decline of $4.9 million, or 2%, while net interest margin narrowed to 3.80% from 3.83%. Even so, the spread widened 2 basis points to 3.06% as the average cost of funds dropped 14 basis points, helped by a 14 basis point decline in the average rate paid on interest-bearing deposits.
Compared with the first quarter of 2025, net interest income rose $22.5 million, or 9%, and net interest margin improved from 3.69% to 3.80%. Average net loans and loans held for sale increased $1.4 billion, or 6%, from a year earlier, while average interest-bearing deposits rose $1.2 billion, or 6%. The average rate paid on interest-bearing deposits fell 36 basis points year over year.
The provision for credit losses was $7.8 million in the latest quarter, up from $6.8 million in the fourth quarter of 2025, but sharply below the $29.1 million booked in the first quarter of 2025. The year-earlier quarter included $18.7 million tied to purchased non-credit deteriorated loans from Piedmont Bancorp. Net charge-offs improved to $5.7 million from $9.3 million in the prior quarter and from $8.0 million a year earlier.
Noninterest income climbed to $34.1 million from $31.0 million in the fourth quarter, an increase of $3.1 million, or 10%. Investment securities produced $2.3 million in gains, compared with $218,000 in losses in the prior quarter, and brokerage fees rose to $7.4 million from $6.0 million.
Noninterest expense was $152.8 million, up $1.1 million from the fourth quarter but slightly below the $153.6 million reported a year ago. Relative to the prior quarter, employee benefits increased $3.0 million and FDIC insurance expense rose $1.1 million, partly offset by a $1.1 million decline in data processing. Versus the first quarter of 2025, the company cut other noninterest expense by $5.2 million and data processing by $1.5 million, while employee benefits rose $2.7 million and employee compensation increased $2.6 million.
Income tax expense was $31.8 million, up from $31.1 million in the fourth quarter and from $22.6 million in the first quarter of 2025. The effective tax rate was 20.4%, compared with 19.4% in the prior quarter and 21.2% a year earlier.
At March 31, 2026, nonperforming loans were $102.8 million, essentially unchanged from $101.5 million at year-end 2025, with the ratio steady at 0.41% of loans and leases. Nonperforming assets rose to $113.2 million from $110.3 million, while other real estate owned increased to $10.4 million from $8.9 million. The allowance for loan and lease losses was $299.6 million, up from $297.5 million, and remained at 1.20% of loans and leases.
United repurchased about 1.7 million shares during the quarter at an average price of $39.92. The market has reacted to these announcements by moving the company's shares 0.56% to a price of $41.08. For the full picture, make sure to review UNITED BANKSHARES INC/WV's 8-K report.
