UBSI - United Bankshares: Mortgage Banking Normalization To Counter Acquisition Benefits
- The upcoming acquisition will boost the loan book by around 7%. Apart from the acquisition, loan growth will likely remain low.
- Mortgage banking income proved quite resilient in the third quarter. The looming normalization of mortgage banking activity will hurt the bottom line.
- UBSI is offering a high dividend yield for a bank-holding company. Although there are chances of an increase in the dividend, I have assumed no change through 2022.
- Next year’s target price suggests a high upside from the current market price.
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United Bankshares: Mortgage Banking Normalization To Counter Acquisition Benefits