Executive Summary

UBSI delivered record Q2 2025 net income of $120.7M and diluted EPS of $0.85, with ROAA 1.49% and NIM expanding 12 bps to 3.81%; strong linked-quarter improvements were driven by higher net interest income, lower provision, and reduced merger-related costs .
EPS beat Wall Street consensus by ~$0.08 and revenue modestly exceeded estimates; acquisition-related loan accretion and Atlanta-market growth were key upside drivers; efficiency ratio improved to 48.37% .
Management introduced 2025 guidance ranges (NII $1.090–$1.100B; noninterest income $115–$125M; noninterest expense $605–$615M; ETR ~21%; provision planning $52M) and reiterated robust capital/liquidity; repurchased ~981K shares in Q2 .
Tone was confident on continued H2 success, citing entry into Atlanta, asset quality, and expense control as catalysts; dividend maintained at $0.37 and subsequent Q3 2025 dividend declared on Aug 25, 2025 .

What Went Well and What Went Wrong

What Went Well

Record profitability: Net income $120.7M and diluted EPS $0.85; NIM up 12 bps to 3.81% and efficiency ratio improved to 48.37% .
Accretion and loan growth: Net interest income rose $14.5M QoQ, aided by $5.8M higher acquired loan accretion and full-quarter Piedmont balances; CEO: “strongest earnings quarter in our Company’s long history” .
Cost control and integration: Noninterest expense fell $5.6M QoQ as merger-related costs declined from $11.3M to $1.3M; tax rate eased to 20.6% .

What Went Wrong

Credit costs normalization: Net charge-offs rose YoY (annualized 0.14% vs 0.02% in Q2’24) and NPAs ticked up sequentially to 0.23% of assets; ALLL ratio dipped to 1.28% QoQ .
Mortgage-related headwinds: Lower mortgage banking and servicing income YoY following 2024 MSR sales; mortgage production still below prior-year levels .
Merger noise in H1: Day 1 CECL impacts ($40.3M ACL including unfunded) and $12.6M H1 merger-related expenses weighed on reported H1 op-ex/provision metrics .

Financial Results

Income Statement and Profitability (GAAP)

Metric	Q2 2024	Q1 2025	Q2 2025
Net Interest Income ($USD MM)	$225.7	$260.1	$274.5
Noninterest Income ($USD MM)	$30.2	$29.6	$31.5
Provision for Credit Losses ($USD MM)	$5.8	$29.1	$5.9
Noninterest Expense ($USD MM)	$134.8	$153.6	$148.0
Net Income ($USD MM)	$96.5	$84.3	$120.7
Diluted EPS ($)	$0.71	$0.59	$0.85
Net Interest Margin (%)	3.50%	3.69%	3.81%
Efficiency Ratio (%)	52.66%	53.03%	48.37%
ROAA (%)	1.32%	1.06%	1.49%
ROAE (%)	7.99%	6.47%	9.05%

Revenue vs Estimates and Actuals (S&P Global)

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue Consensus Mean ($USD MM)	255.736*	278.753*	297.986*
Revenue Actual ($USD MM)	250.159*	260.506*	300.108*
EPS Consensus Mean ($)	0.644*	0.633*	0.775*
EPS Actual ($)	0.71	0.59	0.85
# of EPS Estimates	5*	6*	6*
# of Revenue Estimates	3*	4*	2*

Values retrieved from S&P Global.*

Note: UBSI’s press materials imply “revenue” proxied by net interest income + noninterest income (~$306.0M in Q2), which may differ from SPGI’s bank revenue methodology .

Balance Sheet and Credit KPIs

KPI	Q2 2024	Q1 2025	Q2 2025
Loans & Leases (period-end, $USD MM)	$21,598.7	$23,863.1	$24,050.2
Total Deposits ($USD MM)	$23,066.4	$26,364.6	$26,335.9
NPLs ($USD MM)	$65.3	$69.8	$68.3
NPAs ($USD MM)	$67.5	$71.3	$74.6
ALLL / Loans (%)	1.24%	1.30%	1.28%
Annualized Net Charge-offs / Avg Loans (%)	0.02%	0.14%	0.14%
CET1 Ratio (est.) (%)	—	13.3%	13.4%
Dividend per Share ($)	$0.37	$0.37	$0.37
Share Repurchases (# shares)	—	~567K	~981K

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Interest Income (non-FTE)	FY 2025	Not disclosed	$1.090B–$1.100B	New
Loan Purchase Accounting Accretion	FY 2025	Not disclosed	~$31M	New
Noninterest Income	FY 2025	Not disclosed	$115M–$125M	New
Noninterest Expense	FY 2025	Not disclosed	$605M–$615M	New
Provision Expense (planning assumption)	FY 2025	Not disclosed	$52M (incl. $19M Day 2 recorded in Q1)	New
Effective Tax Rate	FY 2025	Not disclosed	~21%	New
Loans/Deposits Growth	Remainder of 2025	Not disclosed	Low-to-mid single digits (annualized)	New
Investment Portfolio Balances	FY 2025	Not disclosed	Relatively flat (market dependent)	New
Stock Buyback	FY 2025	Not disclosed	Market dependent; 2.8M shares remaining under plan at 6/30/25	Continued

Earnings Call Themes & Trends

Note: A Q2 2025 earnings call transcript was not available in our document set; we rely on Q2 earnings deck and releases.

Topic	Previous Mentions (Q2’24, Q1’25)	Current Period (Q2’25)	Trend
Net Interest Margin and Accretion	NIM 3.50% (Q2’24); accretion $2.4M YOY	NIM 3.81%; accretion $11.8M (+$5.8M QoQ), +~8 bps to margin	Improving
Piedmont Integration	Closed 1/10/25; Q1 merger-related expenses $30.0M and Day 1 ACL $40.3M	Full-quarter balances; merger expenses down to $1.3M; pipelines “relatively strong”	Integration progressing, costs tailing
Loan Growth and Geography	Q1: growth from Piedmont; +$1.7B avg loans QoQ	Linked-quarter +$187M EOP loans; strong GA/NC/Central VA growth	Broad-based growth
Credit Quality/CRE Office	Q4’24: Office exposures disclosed in deck (context)	NOO Office ~$0.9B (~3.6% loans); Top 60 weighted avg LTV ~55% (current), ~65% at origination; disciplined underwriting	Stable with monitoring
Liquidity/Deposits	Avg interest-bearing deposit costs down QoQ/Q4’24	~25% noninterest-bearing deposits; brokered deposits down to 0.4%; total liquidity ~$22.5B	Strong liquidity, deposit mix favorable
Capital and Buybacks	No repurchases in 2024	CET1 13.4%; repurchased ~981K shares; TBV/share $23.32	Capital robust; buybacks active
Mortgage Banking	Lower origination/sale volumes; MSR sales in 2024	Mortgage banking income lower YoY; production up QoQ	Gradual recovery QoQ, YoY headwind

Management Commentary

“I’m excited to announce that the second quarter of 2025 was the strongest earnings quarter in our Company’s long history. Our entry into the Atlanta market, along with excellent asset quality and strong expense control, drove our results in the quarter. I anticipate continued success in the second half of the year.” — Richard M. Adams, Jr., CEO .
Linked-quarter drivers: increases in average loans from Piedmont and organic growth, higher loan yields, and +$5.8M acquired loan accretion; NIM +12 bps QoQ .
Expense discipline: merger-related expenses cut to $1.3M in Q2 from $11.3M in Q1; efficiency ratio improved to 48.37% .
Capital and shareholder returns: repurchased ~981K shares in Q2; CET1 13.4%, robust liquidity position .

Q&A Highlights

A Q2 2025 earnings call transcript was not available in our document set; Q&A-specific themes and clarifications cannot be provided based on primary sources. We relied on the Q2 earnings presentation and press release for strategy and outlook .

Estimates Context

Q2 2025 EPS of $0.85 beat consensus $0.775; revenue of $300.1M (SPGI actual) exceeded consensus $298.0M; efficiency ratio also better than sell-side (50% est. vs 48.37% actual) .
Q1 2025 miss reflected Day 1 CECL and merger-related expenses; Q2 rebound may drive upward estimate revisions for H2 as integration noise subsides and NIM holds toward 3.8% .