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UNITED QUARTERLY EARNINGS PER SHARE
INCREASED 21.9%
United Bankshares, Inc. (NASDAQ: UBSI), today reported diluted earnings per share increased 21.9% in the third quarter of 1998 compared with the same period of 1997. Quarterly net income was a record $15.7 million, or 39¢ per share, compared with $12.5 million, or 32¢ per share, a year earlier. Net income for the nine months ended September 30, 1998 was $36.2 million, or 91¢ per share, compared to $36.4 million, or 93¢ per share for the first nine months of 1997. United's 1998 figures contain significant merger-related and one-time charges associated with the second quarter 1998 George Mason merger which distorted United's true financial performance. For the three months and nine months ended September 30, 1998, United's return on average assets was strong at 1.57% and 1.27%, respectively while the return on average equity was 16.74% and 13.23%, respectively.
``The United tradition of consistent earnings growth continued in the third quarter," said Richard M. Adams, Chairman and CEO of United. ``Strong growth in mortgage banking and trust activities contributed to the record earnings per share for the quarter. It is expected that 1998 will represent the twenty-fifth consecutive year of dividend increases for United shareholders."
Net interest income in the third quarter was $40.9 million, an increase of $5.9 million from the third quarter 1997. The quarterly net interest margin was 4.52%, an increase of two basis points from the preceding quarter. Loan loss provision totaled $3.3 million for the quarter, up $2.3 million from 1997 third quarter. Noninterest income grew 17.7%, or $2.0 million from third quarter 1997. Noninterest expense increased 11.0% from third quarter 1997; primarily the result of increased personnel expense.
Nonperforming assets totaled $20.9 million at September 30, 1998, a decrease of $3.5 million from the September 30, 1997 level. Net charge-offs for the third quarter were $1.1 million, $2.2 million less than the quarterly provision for loan losses. The net charge-off ratio was an annualized rate of 0.14% of average loans. At quarter-end, the reserve for loan losses totaled $37.3 million.
At October 1, 1998, total assets of United were $4.3 billion, following the completion of the Fed One Bancorp, Inc., merger which added approximately $370 million in assets. United now has 79 full service offices in West Virginia, Virginia, Maryland, Ohio and Washington, D.C.
October 20, 1998 |
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