DATE:
FROM:
CONTACT:
July 19, 1999
United Bankshares, Inc.
514 Market Street
Parkersburg, WV  26101
Steven E. Wilson
(304) 424-8704

FOR IMMEDIATE RELEASE

United Bankshares, Inc. Announces Record
Second Quarter and First Half 1999 Earnings

United Bankshares, Inc., today reported record earnings for the second quarter and the first half of 1999. Quarterly net income was $17.8 million, or 40¢ per share, compared with $7.5 million, or 17¢ per share, a year earlier. Net income for the six months ended June 30, 1999 was $34.9 million, or 79¢ per share, compared to $22.0 million, or 51¢ per share for the first six months of 1998. United’s 1998 figures contain significant merger-related and one-time charges associated with the second quarter 1998 George Mason Bankshares, Inc. merger. In addition, the 1998 figures have been restated to include the fourth quarter 1998 acquisition of Fed One Bancorp, Inc.

United’s key performance ratios were strong for the three months and six months ended June 30, 1999, United’s return on average assets was 1.47% and 1.50%, respectively while the return on average equity was 16.43% and 16.30%, respectively. These key financial performance ratios are indicative of United’s earnings strength and strong capital levels. United continues to be one of the best performing regional banking companies in the nation.

United's asset quality remains strong with the nonperforming asset level at 0.54% 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.

The annualized first half dividend of 40¢ per share equals 80¢ which would represent the twenty-sixth consecutive year of dividend increases for United shareholders.

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 achieved another milestone in its history by exceeding $5 billion in assets at quarter end. United is the second largest West Virginia headquartered bank holding company. UBSI with its lead bank, United National Bank, and Virginia subsidiary, United Bank, has 78 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".

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 and evolving banking industry standards.

UNITED BANKSHARES. INC. AND SUBSIDIARIES

FINANCIAL SUMMARY
(In Thousands Except for Share and Per Share Data)

Three Months Ended

Six Months Ended

June 30
1999

June 30
1998

June 30
1999

June 30
1998
EARNINGS SUMMARY
Interest income, taxable equivalent

$88,391

$81,503

$175,160

$158,786
Interest expense

42,415

38,331

81,948

74,566
Net interest income, taxable equivalent

45,976

43,172

93,212

84,220
Taxable equivalent adjustment

1,369

909

2,634

1,933
Net interest income

44,607

42,263

90,578

82,287
Provision for loan losses

1,761

5,257

2,525

7,337
Non-interest income

6,287

5,655

12,508

11,984
Gain (loss) on security transactions

71

(132)

71

2,355
Income (loss) from mortgage banking operations

6,095

6,392

10,513

11,588
Non-interest expenses

29,070

40,439

57,891

70,134
Income taxes

8,433

935

18,297

8,775
Net income

17,796

7,547

34,.957

21,968
Cash dividends paid 8,667 7,034 17,325 12,286
PER COMMON SHARE:
Net income:
     Basic

0.41

0.18

0.81

0.52
     Diluted

0.40

0.17

0.79

0.51
Cash dividends paid

0.20

0.18

0.40

0.36
Book value

9.19

9.50
Closing market price

26.500

34.125
Common shares outstanding:
     Actual, net of treasury shares

43,263,106

42,717,048
     Basic

43,322,319

42,517,226

43,298,879

42,451,708
     Diluted

44,013,035

43,462,278

43,976,863

43,373,341
FINANCIAL RATIOS:
Return on average assets

1.47%

0.71%

1.50%

1.08%
Return on average shareholders' equity

16.43%

7.45%

16.30%

10.95%
Average equity to average assets

8.97%

9.68%

9.19%

9.84%
Net interest margin

4.03%

4.53%

4.20%

4.55%

June 30
1999

June 30
1998

December 31
1998

March 31
1999
PERIOD END BALANCES:
Assets

5,005,240

4,246,699

4,567,899

4,676,350
Earning Assets

4,728,576

4,005,714

4,317,021

4,438,701
Loans, net of unearned income

2,887,818

2,653,955

2,652,391

2,682,100
Loans held for sale 146,656 397,051 720,607 365,678
Investment securities

1,690,711

932,281

927,316

1,383,976
Total deposits

3,391,484

3,260,403

3,493,058

3,438,733
Shareholders' equity

397,596

405,662

421,531

427,326
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