DATE:

FROM:

CONTACT:

July 20, 1998

United Bankshares, Inc.
514 Market Street
Parkersburg, WV  26101

Steven E. Wilson
Executive Vice President and Chief Financial Officer
(304) 424-8800

FOR IMMEDIATE RELEASE

REVENUE GROWTH DRIVES
UNITED'S QUARTERLY OPERATING EPS UP 19%

Solid revenue growth led to a 19 percent increase in operating earnings per share in United Bankshares' Inc.'s (United's) second quarter 1998.  Operating earnings were 37 cents per common share compared with 31 cents in the second quarter of 1997.  Operating earnings, which represent earnings before merger-related and restructuring charges, were a record $14.7 million, an increase of 21 percent from $12.1 million in the second quarter of 1997.

Second quarter 1998 operating earnings represent a return on average stockholders' equity of 16.16 percent and a return on average assets of 1.54 percent.

For the first six months of 1998, operating earnings increased 19 percent to $28.4 million compared with $24.0 million in the first six months of 1997.  Operating earnings per share increased 17 percent to 72 cents compared with 61 cents in the first six months of 1997.

Merger-related and restructuring charges of $7.9 million after-tax were primarily associated with the acquisition of George Mason.  After merger-related and restructuring charges, earnings were 17 cents for the second quarter of 1998 and 52 cents for the first six months of 1998.

United's historical results have been restated to include the pooling acquisition of George Mason Bankshares, Inc. on April 2, 1998.

``We are very pleased with the strong financial results in the second quarter of 1998.  We are focused on completing our pending acquisitions and on developing our existing businesses which drive revenue growth," said Richard M. Adams, Chairman and Chief Executive Officer.  ``United's core operating performance trends continue to be quite positive.  We are particularly pleased with the growth in our secondary market mortgage banking operation which is lessening our dependence on spread-based income."

A significant event during the second quarter of 1998 was United's addition to the S&P Small Cap 600 Index effective with the close of trading on May 22, 1998.  United was added to the Banks (Regional) industry group and made United the only regional bank in Maryland, Kentucky and West Virginia included in the index.

The first half dividend of 36 cents per share equals 72 cents which would represent the twenty-fifth consecutive year of dividend increases for United shareholders.  Additionally, based on the market price for United's stock on June 30, 1998, United shareholders have experienced a 61 percent appreciation in their stock ownership value since a year ago.

UNITED BANKSHARES. INC. AND SUBSIDIARIES
FINANCIAL SUMMARY
(In Thousands Except for Per Share Data)

Three Months Ended

Year Ended

June
30
1998

June
30
1997

June
30
1998

June
30
1997

EARNINGS SUMMARY

        

Interest income, taxable equivalent

$74,931

$61,991

$145,604

$121,789

Interest expense

34,496

27,963

66,976

54,493

Net interest income, taxable equivalent

40,432

34,028

78,628

67,296

Taxable equivalent adjustment

922

771

1,929

1,541

Net interest income

39,513

33,257

76,699

65,755

Provision for loan losses

5,257

558

7,307

1,162

Non-interest income

6,144

4,958

11,919

9,631

Gain (loss) on security transactions

(225)

(1)

2,262

40

Income (loss) from mortgage banking operations

5,723

2,928

11,311

5,933

Non-interest expenses

38,573

22,142

66,381

44,122

Income taxes

504

6,316

7,935

12,085

Net income

6,821

12,126

20,568

23,990

Cash dividends paid

7,034

4,930

12,286

9,895

PER COMMON SHARE:

        

Net income:

        

     Basic

0.17

0.31

0.53

0.62

     Diluted

0.17

0.31

0.52

0.61

Cash dividends paid

0.18

0.17

0.35

0.33

Book value

    

9.30

8.61

Closing market price

    

34.125

21.250

Common shares outstanding:

        

     Actual, net of treasury shares

    

39,114,951

38,533,178

     Basic

39,080,717

38,517,014

39,073,837

38,485,232

     Diluted

39,805,419

39,077,226

39,731,926

39,128,076

FINANCIAL RATIOS:

        

Return on average assets

0.72%

1.51%

1.11%

1.53%

Return on average shareholders' equity

7.50%

14.84%

11.41%

14.78%

Average equity to average assets

9.54%

10.23%

9.72%

10.32%

Net interest margin

4.50%

4.53%

4.51%

4.55%

June
30
1998

June
30
1997

December
31
1998

December
31
1997

PERIOD END BALANCES:

        

Assets

3,867,002

3,336,076

3,726,359

3,804,958

Earning Assets

3,634,870

3,245,202

3,499,014

3,594,731

Loans, net of unearned income

2,881,824

2,325,288

2,607,406

2,781,391

Investment securities

752,883

742,014

776,384

801,070

Total deposits

2,994,619

2,635,548

2,925,349

2,950,014

Shareholders' equity

363,792

331,940

355,474

363,643

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