United Bankshares, Inc. Announces
Record Earnings for Third Quarter
and First Nine Months of 2000

United Bankshares, Inc. (NASDAQ: UBSI), today reported record third quarter earnings for 2000, which follows record first and second quarter earnings. Earnings per share for the third quarter increased 7% from 41¢ in 1999 to 44¢ in 2000 to reach a record $18.6 million net profit compared to $17.7 million in 1999. Record earnings for the first three quarters of 2000 of $1.29 a share or $54.7 million grew 8% over the first three quarters of 1999 earnings of $1.20 per share or $52.7 million. Cash earnings per share were 45¢ and $1.33 for the third quarter and first nine months of 2000, respectively.

United's key performance ratios remain strong. Third quarter 2000 annualized returns on average assets and average equity were 1.50% and 18.01%, respectively.For the first nine months ended September 30, 2000, United achieved an annualized return on average assets of 1.48% and an annualized return on average equity of 18.08%. On a cash basis, the annualized return on average tangible assets was 1.55% and 1.53% for the third quarter and first nine months of 2000, respectively, while the annualized return on average tangible equity was 20.59% and 20.75%, respectively for the same time periods in 2000. These key financial performance ratios are indicative of United's earnings strength. United continues to be one of the best performing regional banking companies in the nation.

The third quarter dividend was 21¢ per share. It is expected that 2000 will represent twenty-seven consecutive years of dividend increases for United shareholders.

Tax-equivalent interest income increased $4.4 million or 5% in the third quarter of 2000 and $22.0 million or 8% for the first nine months of 2000 when compared to the same periods of 1999. Tax-equivalent net interest income remained relatively flat for the third quarter of 2000 and first nine months of 2000 when compared to the same periods of 1999 as increased deposit and funding costs resulting from six Federal Funds rate increases since mid 1999 have offset the growth in interest income. United's tax-equivalent net interest margin was 4.04% and 4.13% for the third quarter and first nine months of 2000, respectively, compared to 3.99% and 4.16% for the same time periods in 1999. The increase in the margin percentage for the quarter-to-quarter comparison reflected a changing earning asset mix from investment securities to higher yielding loans.

United's asset quality remained stable for the quarter and has improved significantly since year end. Nonperforming loans were $16.7 million at September 30, 2000 as compared to $17.1 million at June 30, 2000 and $20.7 million at December 31, 1999. Nonperforming loans represented 0.34% of total assets at the end of the first nine months of 2000, as compared to 0.41% for United at year end 1999. Loans past due 90 days or more and nonaccrual loans decreased $1.7 million and $2.3 million, respectively during the first nine months of 2000. Total nonperforming assets of $18.2 million, including OREO of $1.5 million, represented 0.37% of total assets at September 30, 2000 as compared to 0.49% at December 31, 1999.

For the quarters ended September 30, 2000 and 1999, the provision for loan losses was $4.4 million and $2.3 million, respectively, while the provision for the first nine months was $10.8 million for 2000 as compared to $4.8 million for 1999. Total net charge-offs were $4.3 million in the third quarter of 2000 and $3.0 million during the same time period in 1999. Net charge-offs were $11.0 million for the first nine months of 2000 as compared to net charge-offs of $4.3 million for the first nine months of 1999. The increases in provision and net charge-offs were primarily attributed to the addition to the loan portfolio as of October 1, 1999 of approximately $230 million of junior-lien mortgage loans previously classified as securities held for sale. Such increased provision and charge-offs were offset by increased interest income recognized on the reclassed loans. At September 30, 2000, the balance of these junior-lien mortgage loans approximated $185 million. As of September 30, 2000, the allowance for loan losses was $39.4 million or 1.25% of net loans.

Noninterest income increased 4% for the third quarter of 2000 when compared to the third quarter of 1999 while remaining relatively flat in the year-to-year comparison. These results were achieved despite the depressed mortgage lending business caused by rising interest rates and a slowing economy. Mortgage loan origination activity fell 19% or $187.0 million for the first nine months of 2000 as compared to the same period in 1999. Fewer originations resulted in a decline of loan sales in the secondary market of 32% or $371.2 million during the first nine months of 2000 in comparison to the same time period in 1999. Excluding income from mortgage banking operations and gains on the sale of investment securities, noninterest income increased 11% and 16% for the third quarter and first nine months of 2000, respectively over last years' results primarily due to a combination of increased revenues from the trust department and the deposit services area. Trust fees increased 26% and 30% in the third quarter and first nine United Bankshares, Inc. Announces... October 19, 2000 Page Three months of 2000, respectively, compared to the prior year's third quarter and year-to-date results. Deposit charges increased 6% for the quarter compared to the prior year's third quarter and rose 13% in the year-to-year comparison.

Noninterest expense decreased $3.9 million or 13% and $6.6 million or 8% for the quarter and nine months ended September 30, 2000, as compared to the same periods in 1999. Total salaries and benefits decreased by 18% or $2.8 million and 12% or $5.5 million for the third quarter and first nine months of 2000, respectively when compared to the same periods of 1999. The decline was due mainly to lower sales activity in the mortgage banking segment as compensation and incentives for its personnel are significantly tied to activity levels. The efficiency ratio was a low 41.37% and 43.41% for the third quarter and first nine months of 2000, respectively. This ratio compares very favorably to regional and national peer group banking companies.

Total assets have declined $118.7 million or 2% since year end as United continues to restructure its balance sheet. Total loans, including loans held for sale, have remained relatively flat growing only $74.1 million or 2%. Total deposits have also remained relatively stable, increasing $52.2 million or 2% since year end. United's total borrowed funds have decreased $181.0 million or 13% for the year. United repaid these borrowings to restructure the balance sheet to better manage interest rate risk. Shareholders' equity was $421.6 million resulting in a book value per share of $10.08. United is categorized as well capitalized based on the risk-based capital ratio, considerably exceeding the regulatory minimum requirement. All these measures provide evidence that United's financial position is strong.

United Bankshares, with $5 billion in assets, has 77 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

Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

Consolidated Statements of Income

Three Months Ended

Nine Months Ended

September

September

June

March

September

September

2000

1999

2000

2000

2000

1999

Interest & Loan Fees Income

$95,298

$90,811

$94,063

$93,268

$282,629

$263,337

Tax Equivalent Adjustment

2,860

2,940

2,514

2,875

8,250

5,574

Interest & Fees Income (FTE)

98,158

93,751

96,577

96,143

290,879

268,911

Interest Expense

51,165

45,822

48,632

46,542

146,339

127,770

Net Interest Income (FTE)

46,993

47,929

47,945

49,601

144,540

141,141

Loan Loss Provision

4,439

2,255

3,851

2,547

10,837

4,780

Non-Interest Income:

Inv. Securities Transactions

324

(70)

505

318

1,147

1

Trust Revenue

1,749

1,392

1,753

1,692

5,194

3,984

Service Charges on Deposits

5,661

5,365

5,634

5,093

16,388

14,522

Non-recurring

Income/(loss) from Mortgage Banking Operations

5,014

5,706

4,159

3,383

12,556

16,219

Gain/(loss) on Sale of Assets

0

0

0

Other Non-Interest Revenue

576

450

413

315

1,304

1,209

Total Non-Interest Income

13,324

12,843

12,464

10,801

36,589

35,935

Non-Interest Expense:

Staff Expense

12,127

14,878

13,610

13,739

39,476

44,932

Occupancy & Equipment

2,861

3,104

2,870

3,161

8,892

9,257

Other Expenses

9,622

10,264

9,450

10,151

29,223

29,723

Non-recurring

Amortization of Intangibles

819

810

819

820

2,458

2,460

OREO Expense

(172)

150

191

97

116

345

FDIC Expense

206

171

166

175

547

551

Total Non-Interest Expense

25,463

29,377

27,106

28,143

80,712

87,268

Pre-Tax Earnings (FTE)

30,415

29,140

29,452

29,712

89,580

85,028

Tax Equivalent Adjustment

2,860

2,940

2,514

2,875

8,250

5,574

Reported Pre-Tax Earnings

27,555

26,200

26,938

26,837

81,330

79,454

Taxes

8,994

8,500

8,815

8,849

26,658

26,797

Net Income before Extra Items

18,561

17,700

18,123

17,988

54,672

52,657

Extraordinary Items (Net of Tax)

Net Income

$18,561

$17,700

$18,123

$17,988

$54,672

$52,657

MEMO: Effective Tax Rate

32.64%

32.44%

32.72%

32.97%

32.78%

33.73%

Consolidated Balance Sheets

September 30

September 30

2000

1999

September 30

December 31

September 30

Q-T-D Average

Q-T-D Average

2000

1999

1999

Cash & Cash Equivalents

$119,225

$115,453

$106,887

$159,808

$135,637

Trading Account Securities

Securities Available for Sale

958,583

1,443,419

967,554

1,207,363

1,445,351

Held to Maturity Securities

388,343

273,309

385,076

265,190

273,675

Other Securities

Total Securities

1,346,926

1,716,728

1,352,630

1,472,553

1,719,026

Total Cash and Securities

1,466,151

1,832,181

1,459,517

1,632,361

1,854,663

Loans held for sale

156,408

115,503

158,468

117,825

117,610

Commercial Loans

1,483,121

1,395,434

1,502,658

1,446,633

1,420,895

Mortgage Loans

1,356,533

1,176,426

1,374,402

1,370,904

1,197,891

Consumer Loans

322,233

338,078

326,478

352,559

344,247

Loans & Leases, net of unearned income

3,318,295

3,025,441

3,362,006

3,287,921

3,080,643

Reserve for loan & Lease Losses

(39,358)

(40,433)

(39,432)

(39,599)

(39,704)

Goodwill

36,163

36,841

35,754

37,467

38,214

Mortgage Servicing Rights

4

13

0

13

13

Purchase Credit Card Intangibles

Other Intangibles

4,405

4,588

4,299

4,850

5,034

Total Intangibles

40,572

41,442

40,053

42,331

43,261

Real Estate Owned

1,691

3,580

1,516

3,764

3,271

Other Assets

145,520

147,883

126,782

142,383

139,781

Total Assets

$4,932,871

$5,010,094

$4,950,442

$5,069,160

$5,081,915

MEMO: Earning Assets

$4,656,217

$4,711,097

$4,717,326

$4,789,191

$4,812,774

Interest-bearing Deposits

$2,755,411

$2,878,331

$2,799,057

$2,780,218

$2,875,127

Noninterest-bearing Deposits

472,398

465,750

514,080

480,767

501,800

Foreign Deposits

Total Deposits

3,227,809

3,344,081

3,313,137

3,260,985

3,376,927

Short-term Borrowings

408,705

438,637

422,315

398,247

441,629

Intermediate & Long-term Borrowings

828,107

759,047

748,310

953,347

801,851

Total Borrowings

1,236,812

1,197,684

1,170,625

1,351,594

1,243,480

Other Liabilities

58,295

66,791

45,058

60,651

57,552

Minority Interest

Total Liabilities

4,522,916

4,608,556

4,528,820

4,673,230

4,677,959

Common Equity

409,955

401,538

421,622

395,930

403,956

Total Shareholders' Equity

409,955

401,538

421,622

395,930

403,956

Total Liabilities & Equity

$4,932,871

$5,010,094

$4,950,442

$5,069,160

$5,081,915

Three Months Ended

Year to Date

September

September

June

March

September

September

Share Data:

2000

1999

2000

2000

2000

1999

Earnings Per Share:

Net Income before Extraordinary Items:

Basic

$0.44

$0.41

$0.43

$0.43

$1.30

$1.22

Diluted

$0.44

$0.41

$0.43

$0.42

$1.29

$1.20

Diluted - Cash Basis

$0.45

$0.42

$0.44

$0.44

$1.33

$1.24

Net Income after Extraordinary Items:

Basic

$0.44

$0.41

$0.43

$0.43

$1.30

$1.22

Diluted

$0.44

$0.41

$0.43

$0.42

$1.29

$1.20

Diluted - Cash Basis

$0.45

$0.42

$0.44

$0.44

$1.33

$1.24

Common Dividend Declared Per Share

$0.21

$0.21

$0.21

$0.21

$0.63

$0.61

High Common Stock Price

$20.88

$27.25

$22.38

$24.44

Low Common Stock Price

$18.38

$25.06

$16.38

$17.00

Book Value Per Share

$10.08

$9.43

$9.60

$9.37

Tangible Book Value Per Share

$9.12

$8.42

$8.62

$8.38

52-week High Common Stock Price

$26.25

$29.88

$27.25

$27.38

Date

11/04/99

12/02/98

07/09/99

04/22/99

52-week Low Common Stock Price

$16.38

$20.75

$16.38

$17.00

Date

06/27/00

10/08/98

06/27/00

03/08/00

EOP Shares Outstanding (Net of Treasury Stock):

41,910,723

42,018,879

41,825,392

42,831,660

Average Shares Outstanding: (Net of Treasury Stock):

Basic

41,842,460

43,124,385

41,931,050

42,272,860

42,020,696

43,239,869

Diluted

42,147,989

43,708,483

42,264,141

42,657,425

42,337,568

43,817,913

Three Months Ended

Year to Date

September

September

June

March

September

September

Memorandum Items:

2000

1999

2000

2000

2000

1999

Tax Applicable to Security Transactions

$113

($25)

$177

$111

$401

$0

Common Dividends

$8,812

$9,028

$8,812

$8,879

$26,503

$26,403

EOP Employees (full-time equivalent)

1,306

1,395

Selected Yields and Net Interest Margin: