United Bankshares

-6.62%

1. Interest rate risk: Since United Bankshares primarily derives its income from earning interest on its lending activities, an increase in interest rates will reduce its net profit by reducing the spread between the rates it charges to borrowers and the rates it pays out to depositors.

2. Credit risk: United Bankshares is exposed to credit risk when it lends funds to customers. A decline in credit standards or an increase in undesirable loan customers can lead to higher non-performing loans and eventually larger loan losses.

3. Regulatory risk: Regulatory changes governing the banking industry can affect United Bankshares’ ability to raise capital, the amount of money it can lend, and the risk-to-capital it can take.

4. Liquidity risk: United Bankshares' liquidity position can be affected due to its reliance on short-term deposits to fund long-term investments. A disruption in its deposit accounts or in its ability to raise funds through short-term borrowing can cause liquidity problems.

5. Operational risk: United Bankshares may face reputational risk if it fails to maintain the quality of its customer service and ensure the security of customer data. It may also incur additional costs if its IT systems become inefficient or outdated.