For 1997, United's return on average assets was strong at 1.7% and return on average equity was 15.3%.  Today, United is one of the best performing regional banking companies in the nation.

"The year 1997 was the best year in our company's history," said Richard M. Adams, Chairman and CEO.

The 1997 dividend of $1.35 per share, represents the twenty-fourth consecutive year of dividend increases for United shareholders.  Additionally, based on recent market prices for United's stock, United shareholders have experienced a 45% appreciation in their stock ownership value since a year ago.  United's asset quality remains strong with the nonperforming asset level at 0.67% of total assets,  the capital ratio remains strong at nearly 11% 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.

This week United announced reaching an agreement to purchase two branches in the eastern panhandle of West Virginia.  The branches, located in Charles Town and Shepherdstown, have combined deposits of approximately $67 million.  This represents an entrance into new markets for United and it bridges the geographic gap between United's West Virginia and Virginia franchises.  The transaction is subject to the receipt of all regulatory approvals, as well as other customary conditions.

United recently signed a definitive agreement to merge with George Mason Bankshares, Inc. of Fairfax, Virginia, with assets of approximately $1 billion.  The transaction, which is expected to close in April of 1998, will increase United's Virginia franchise to more than $1.3 billion in assets.  Following completion of the proposed merger with George Mason, United will have consolidated assets of over $3.7 billion with 73 full service offices in West Virginia, Virginia, Maryland and Washington, D.C.  Consummation of the transaction is subject to approval by the shareholders of United and George Mason and the receipt of all required regulatory approvals, as well as other customary conditions.

United Bankshares, with $2.7 billion in assets, is the second largest West Virginia headquartered bank holding company.  UBSI with its lead bank, United National Bank, and subsidiary, United Bank, has 43 offices in 34 West Virginia communities and 10 offices in the Northern Virginia region.