United Bankshares, Inc. Announces
Record Earnings for First Quarter 2001

United Bankshares, Inc. (NASDAQ: UBSI), today reported record earnings for the first quarter of 2001. Earnings per share increased 10% from 42¢ recorded in the first quarter of 2000 to 46¢, which is the result of record earnings of $19.4 million for the first quarter of 2001 compared to $18.0 million for the first quarter of 2000. Cash basis operating earnings totaled $19.9 million or 47¢ per share for the first quarter of 2001 as compared to 44¢ per share for the first quarter of 2000 and 43¢ per share for the fourth quarter of 2000.

United’s key performance ratios continue to be strong. First quarter of 2001 results produced a return on average assets of 1.62% and a return on average equity of 17.87%. On a cash basis, the return on average tangible assets was 1.68% and the return on average tangible equity was 20.15%. These financial performance ratios are indicative of United’s earnings strength and balanced capital levels.

Analysts are forecasting record earnings for United in 2001, and on the basis of operating earnings, United continues to be one of the highest performing regional banking companies in the country.

Two other distinctions that United heralds are its inclusion in both the S&P Small Cap 600 and Russell 2000 Indices. United was added to the Banks (Regional) industry group of each of these indices during the second quarter of 1998, which made United the only regional bank in Maryland, Kentucky and West Virginia included in the indices.

United Bankshares, with $5.0 billion in assets, has 76 full-service offices in West Virginia, Virginia, Maryland, Ohio, and Washington, D.C.

This press release contains certain forward-looking statements, including certain plans, expectations, goals and projections, which are subject to numerous assumptions, risks and uncertainties. Actual results could differ materially from those contained in or implied by such statements for a variety of factors including: changes in economic conditions; movements in interest rates; competitive pressures on product pricing and services; success and timing of business strategies; the nature and extent of governmental actions and reforms; and rapidly changing technology evolving banking industry standards.

(In Thousands Except for Per Share Data)

Three Months Ended

March 31 2001

March 31 2000

December 31 2000

EARNINGS SUMMARY:

Interest income, taxable equivalent

$94,865

$96,143

$98,061

Interest expense

47,777

46,542

51,427

Net interest income, taxable equivalent

47,088

49,601

46,634

Taxable equivalent adjustment

2,868

2,875

2,843

Net interest income

44,220

46,726

43,791

Provision for loan losses

2,499

2,547

4,908

Net income from mortgage banking operations

5,225

3,383

3,784

Gain (loss) on security transactions

142

318

(15,011)

Other noninterest income

8,578

7,100

8,424

Noninterest expenses

26,996

28,143

29,710

Income taxes

9,318

8,849

2,066

Net income

19,352

17,988

4,304

Cash dividends paid

9,175

8,879

8,782

PER COMMON SHARE:

Net income:

Basic

0.46

0.43

0.11

Diluted

0.46

0.42

0.11

Diluted – cash basis

0.47

0.44

0.12

Cash dividends paid

0.22

0.21

0.21

Book value

10.69

9.37

10.32

Closing market price

22.125

22.000

21.250

Common shares outstanding:

Actual, net of treasury shares

41,587,229

42,018,879

41,765,271

Average basic

41,703,350

42,272,860

41,775,776

Average diluted

42,020,236

42,657,425

42,072,051

FINANCIAL RATIOS:

Return on average assets

1.62%

1.45%

0.35%

Return on average shareholders’ equity

17.87%

18.05%

4.03%

Average equity to average assets

9.05%

8.06%

8.69%

Net interest margin

4.10%

4.23%

4.03%

March 31 2001

March 31 2000

December 31 2000

PERIOD END BALANCES:

Assets

4,984,804

4,980,745

4,904,547

Earning assets

4,762,807

4,734,578

4,643,668

Loans, net of unearned income

3,171,846

3,230,245

3,192,494

Loans held for sale

239,148

102,109

203,831

Investment securities

1,303,613

1,396,949

1,245,334

Total deposits

3,462,701

3,274,505

3,391,449

Shareholders’ equity

445,084

393,822

430,870

(In Thousands Except for Per Share Data)

Three Months Ended

Consolidated Statements of Income

2001

2000

2000

Interest Income and Expense

Interest and Loan Fees Income

$91,997

$93,268

$95,218

Tax Equivalent Adjustment

2,868

2,875

2,843

Interest and Fees Income (FTE)

94,865

96,143

98,061

Interest Expense

47,777

46,542

51,427

Net Interest Income (FTE)

47,088

49,601

46,634

Loan Loss Provision

2,499

2,547

4,908

Non-Interest Income:

Inv. Securities Transactions

142

318

(15,011)

Trust Revenue

2,015

1,692

1,859

Service Charges on Deposits

6,017

5,093

6,014

Income from Mortgage Banking Operations

5,225

3,383

3,784

Gain/(loss) on Sale of Assets

0

0

0

Other Non-Interest Revenue

546

315

551

Total Non-Interest Income

13,945

10,801

(2,803)

Non-Interest Expense:

Staff Expense

14,483

13,739

13,698

Occupancy & Equipment

2,658

3,161

2,895

Other Expenses

8,622

10,151

11,883

Amortization of Intangibles

792

820

808

OREO Expense

119

97

100

FDIC Expense

322

175

326

Total Non-Interest Expense

26,996

28,143

29,710

Pre-Tax Earnings (FTE)

31,538

29,712

9,213

Tax Equivalent Adjustment

2,868

2,875

2,843

Reported Pre-Tax Earnings

28,670

26,837

6,370

Taxes

9,318

8,849

2,066

Net Income before Extra Items

19,352

17,988

4,304

Extraordinary Items (Net of Tax)

Net Income

$19,352

$17,988

$4,304

MEMO: Effective Tax Rate

32.50%

32.97%

32.43%

(In Thousands Except for Per Share Data)

Consolidated Balance Sheets

Q-T-D Average

Q-T-D Average

2001

2000

Cash & Cash Equivalents

$130,817

$111,670

$155,576

$144,810

Trading Account Securities

Securities Available for Sale

903,282

1,023,967

1,014,729

865,266

Held to Maturity Securities

345,035

407,241

288,884

380,068

Other Securities

Total Securities

1,248,317

1,431,208

1,303,613

1,245,334

Total Cash and Securities

1,379,134

1,542,878

1,459,189

1,390,144

Loans held for sale

174,010

100,757

239,148

203,831

Commercial Loans

1,536,740

1,473,522

1,543,672

1,527,008

Mortgage Loans

1,347,506

1,358,583

1,326,735

1,359,044

Consumer Loans

301,469

355,360

301,439

306,442

Loans & Leases, net of unearned income

3,359,725

3,288,222

3,410,994

3,396,325

Reserve for loan & Lease Losses

(40,901)

(39,609)

(41,191)

(40,532)

Goodwill

34,832

37,300

34,449

35,102

Mortgage Servicing Rights

13

Purchase Credit Card Intangibles

Other Intangibles

4,048

4,772

3,946

4,122

Total Intangibles

38,880

42,085

38,395

39,224

Real Estate Owned

2,426

3,815

2,395

2,109

Other Assets

110,922

137,361

115,023

117,277

Total Assets

$4,850,186

$4,974,752

$4,984,804

$4,904,547

MEMO: Earning Assets

$4,583,319

$4,686,817