Fourth Quarter and Full Year 1998 Earnings

United Bankshares, Inc. reported fourth quarter operating earnings of $10.3 million or $0.24 per share. This produced a return on average equity (ROE) of 9.59% and a return on average assets (ROA) of 0.93% for the quarter. For the full year 1998, operating net income was $57.5 million, or $1.32 per share. ROE and ROA were 13.96% and 1.36%, respectively, in the past twelve months.

The year 1998 was one of growth through acquisition for United. Assets increased from $2.7 billion to $4.6 billion. United’s historical results include the pooling acquisitions of George Mason Bankshares, Inc. (George Mason) on April 2, 1998 and Fed One Bancorp, Inc. (Fed One) on October 1, 1998. During 1998, United’s true financial performance was distorted by merger related and one-time charges associated with the George Mason and Fed One acquisitions as well as charges associated with the purchase acquisition of branches in the eastern panhandle of West Virginia. Other charges that impacted United’s 1998 earnings were the fourth quarter mark-to-market accounting adjustment for certain junior lien mortgage loans due to the unanticipated failure of an unrelated financial institution to purchase the loans for securitization and United’s ongoing costs associated with its Year 2000 readiness program. The impact of these merger and one-time charges was a reduction of 45¢ per share in United’s 1998 earnings.

1998 marked the 25th consecutive year of dividend increases to shareholders. The dividend increased 9% from $0.68 to $0.75. Based on year-end market prices for United’s stock, United shareholders experienced an 11% appreciation in their stock value since a year ago. United's asset quality remains sound with the nonperforming asset level at 0.50% of total assets, the capital ratio remains strong at nearly 10% and United is categorized as well capitalized based on the risk-based capital ratio, considerably exceeding the regulatory minimum requirement. These ratios compare very favorably to industry averages and support a strong financial position.

Several significant events occurred during 1998 for United. Through its successful merger and acquisition program, United expanded its presence in several key banking markets including the highly attractive market of northern Virginia and the rapidly growing eastern panhandle of West Virginia as well as gaining its first entrance into Ohio. As a result of the 1998 merger and acquisition activity, United ranks as the 75th largest banking company in the nation based on market capitalization. During the second quarter of 1998 United was added to the S&P 600 and Russell 2000 Indices. United was added to the Banks (Regional) industry group, which made United the only regional bank in Maryland, Kentucky and West Virginia included in the index.

Analysts are forecasting record earnings for United in 1999, and on the basis of operating earnings, United continues to be one of the highest performing regional banking companies in the country.

United Bankshares, with $4.6 billion in assets, is the second largest West Virginia headquartered bank holding company. UBSI with its lead bank, United National Bank, and Virginia subsidiary, United Bank, has 79 full-service offices in West Virginia, Virginia, Maryland, Ohio, and Washington, D.C.

United Bankshares stock is traded on the NASDAQ (National Association of Securities Dealers Quotation System) National Market System under the quotation symbol "UBSI".