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1. Company Snapshot

1.a. Company Description

United Bankshares, Inc., a financial holding company, primarily provides commercial and retail banking products and services in the United States.It operates through two segments, Community Banking and Mortgage Banking.The company accepts checking, savings, and time and money market accounts; individual retirement accounts; and demand deposits, statement and special savings, NOW accounts, and interest-bearing checking accounts.


Its loan products include commercial loans and leases; construction and real estate loans; personal, student, credit card, commercial, and floor plan loans; and home equity loans.In addition, the company provides credit cards; safe deposit boxes, wire transfers, and other banking products and services; investment and security services; services to correspondent banks, including buying and selling federal funds; automated teller machine services; and internet and telephone banking services.Further, it offers community banking services, such as asset management, real property title insurance, financial planning, mortgage banking, and brokerage services.


As of December 31, 2021, the company operated 250 offices in Virginia, Maryland, Washington, D.C., North Carolina, South Carolina, Georgia, Pennsylvania, West Virginia, and Ohio.United Bankshares, Inc.was incorporated in 1982 and is headquartered in Charleston, West Virginia.

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1.b. Last Insights on UBSI

United Bankshares' recent performance was driven by a Zacks Rank #1 (Strong Buy) upgrade, reflecting growing optimism about its earnings prospects. The company's frequent acquisitions, including the recent Piedmont Bancorp deal, have led to deteriorating financial metrics and integration challenges. However, United Bankshares' strong dividend history and attractive yield remain a significant draw, despite its high valuation relative to peers and weak organic growth. The company's recent addition to the Zacks Rank #1 (Strong Buy) income stocks list further supports its positive momentum.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Fisher Asset Management LLC Sells 72,881 Shares of United Bankshares, Inc. $UBSI

Dec -03

Source: defenseworld.net

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3 Stocks to Watch That Announced Dividend Hikes Amid Market Volatility

Nov -28

Source: zacks.com

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5 Stocks Worth Watching on Recent Dividend Hikes

Nov -28

Source:

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52nd Consecutive Year of Dividend Increases for United Bankshares, Inc.

Nov -20

Source: businesswire.com

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United Bankshares: Further Underperformance Isn't Justified (Upgrade)

Nov -19

Source: seekingalpha.com

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United Bankshares, Inc. (NASDAQ:UBSI) Receives $41.83 Average Price Target from Brokerages

Oct -31

Source: defenseworld.net

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Compared to Estimates, United Bankshares (UBSI) Q3 Earnings: A Look at Key Metrics

Oct -23

Source: zacks.com

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United Bankshares (UBSI) Beats Q3 Earnings and Revenue Estimates

Oct -23

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.07%)

6. Segments

Community Banking

Expected Growth: 5%

United Bankshares, Inc.'s Community Banking segment growth is driven by strategic acquisitions, expanding branch network, and increased lending activities. Strong relationships with local communities, competitive pricing, and diversified loan portfolio also contribute to growth. Additionally, investments in digital banking and technology enhance customer experience, driving deposit growth and fee income.

Mortgage Banking

Expected Growth: 7%

United Bankshares, Inc.'s 7% growth in Mortgage Banking is driven by increasing demand for housing, low interest rates, and expansion into new markets. Additionally, the company's strategic acquisitions, improved operational efficiency, and strong relationships with mortgage originators have contributed to the growth.

Other

Expected Growth: 4%

United Bankshares, Inc.'s 'Other' segment growth is driven by increasing fee income from mortgage banking, insurance, and wealth management services. Additionally, the segment benefits from rising demand for treasury management and merchant services, as well as strategic acquisitions and partnerships.

Intersegment Eliminations

Expected Growth: 0%

United Bankshares' Intersegment Eliminations with 0% growth is driven by stagnant internal transactions, lack of diversification, and inefficient resource allocation. This suggests a need for improved operational synergies, enhanced cost management, and strategic investments to stimulate growth.

7. Detailed Products

Consumer Banking

United Bankshares offers a range of consumer banking products and services, including checking and savings accounts, credit cards, personal loans, and mortgages.

Commercial Banking

The company provides commercial banking services, including cash management, commercial lending, and treasury management solutions, to businesses of all sizes.

Mortgage Banking

United Bankshares offers a variety of mortgage loan options, including conventional, FHA, VA, and USDA loans, to help individuals and families purchase or refinance a home.

Wealth Management

The company provides wealth management services, including investment management, trust services, and financial planning, to individuals, families, and institutions.

Insurance Services

United Bankshares offers a range of insurance products, including life insurance, long-term care insurance, and annuities, to help individuals and families protect their assets and plan for the future.

Treasury Management

The company provides treasury management services, including cash management, wire transfers, and account reconciliation, to businesses of all sizes.

8. United Bankshares, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

United Bankshares, Inc. operates in a highly competitive industry, and customers have various alternatives for their banking needs. However, the company's strong brand presence and extensive branch network help to mitigate the threat of substitutes.

Bargaining Power Of Customers

United Bankshares, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong relationships with its customers and personalized services help to maintain customer loyalty.

Bargaining Power Of Suppliers

United Bankshares, Inc. is a significant player in the banking industry, which gives it bargaining power over its suppliers. The company's strong financial position and long-term relationships with suppliers also help to reduce the bargaining power of suppliers.

Threat Of New Entrants

The banking industry has high barriers to entry, including regulatory requirements and capital requirements. Additionally, United Bankshares, Inc.'s strong brand presence and extensive branch network make it difficult for new entrants to compete effectively.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. United Bankshares, Inc. faces intense competition from other regional banks and larger national banks, which can lead to pricing pressures and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 29.57%
Debt Cost 5.50%
Equity Weight 70.43%
Equity Cost 9.04%
WACC 8.00%
Leverage 41.98%

11. Quality Control: United Bankshares, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
United Bankshares

A-Score: 6.8/10

Value: 6.8

Growth: 5.0

Quality: 7.6

Yield: 8.0

Momentum: 5.0

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Home Bancshares

A-Score: 6.6/10

Value: 5.4

Growth: 5.6

Quality: 7.8

Yield: 6.0

Momentum: 6.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Cullen Frost Bankers

A-Score: 6.3/10

Value: 4.2

Growth: 6.9

Quality: 6.9

Yield: 6.0

Momentum: 6.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Columbia Banking System

A-Score: 6.3/10

Value: 6.7

Growth: 7.1

Quality: 6.4

Yield: 8.0

Momentum: 4.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Huntington Bancshares

A-Score: 6.1/10

Value: 6.5

Growth: 4.8

Quality: 5.7

Yield: 8.0

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
United Community Banks

A-Score: 5.3/10

Value: 6.6

Growth: 5.0

Quality: 7.5

Yield: 5.0

Momentum: 5.0

Volatility: 3.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

38.02$

Current Price

38.02$

Potential

-0.00%

Expected Cash-Flows