EXHIBIT 99.1
News Release
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[UNITED BANKSHARES, INC. LOGO]
For Immediate Release Contact: Steven E. Wilson (304) 424-8704
April 20, 2001
United Bankshares, Inc. Announces
Record Earnings for First Quarter 2001
United Bankshares, Inc. (NASDAQ: UBSI), today reported record earnings
for the first quarter of 2001. Earnings per share increased 10% from 42c
recorded in the first quarter of 2000 to 46c, which is the result of record
earnings of $19.4 million for the first quarter of 2001 compared to $18.0
million for the first quarter of 2000. Cash basis operating earnings totaled
$19.9 million or 47c per share for the first quarter of 2001 as compared to 44c
per share for the first quarter of 2000 and 43c per share for the fourth quarter
of 2000.
United's key performance ratios continue to be strong. First quarter
of 2001 results produced a return on average assets of 1.62% and a return on
average equity of 17.87%. On a cash basis, the return on average tangible
assets was 1.68% and the return on average tangible equity was 20.15%. These
financial performance ratios are indicative of United's earnings strength and
balanced capital levels.
Net interest income for the first quarter was $44.2 million with a net
interest margin of 4.10%; an increase of 7 basis points from the preceding
quarter due to the cost of United's short-term borrowed funds declining 71 basis
points for the quarter. The level of both earning assets and interest-bearing
liabilities remained relatively flat from the fourth quarter of 2000 to the end
of the first quarter of 2001.
Excluding security transactions, noninterest income for the first
quarter of 2001 increased 31.7% from the first quarter of 2000 and 13.1% over
the fourth quarter of 2000. These increased revenues were the result of an
expanded volume of trust and mortgage banking services for the quarter. Compared
to the first three months of 2000, trust fees rose 19.1%, and income from
mortgage banking operations grew by 54.5%. On a linked-quarter basis, trust fees
grew 8.4% while income from mortgage banking operations increased by 38.1%.
Noninterest income as a percentage of net revenues increased from 19% for the
first quarter of 2000 to 24% for the most recent quarter.
United continued its excellent expense control as evidenced by the
4.1% decrease in noninterest expense from the year-ago quarter and a decrease of
9.1% from the previous quarter. United's efficiency ratio for the first quarter
of 2001 was 42.8%, which compares very favorably to peer group banking
companies.
United Bankshares, Inc. Announces...
April 20, 2001
Page Two
United's asset quality continues to be sound with the nonperforming
asset level at 0.29% of total assets at the end of the first quarter. At March
31, 2001, the loan loss reserve was $41.2 million or 1.30% of total loans and
the delinquency ratio for total past due loans, including loans 30-89 days
delinquent, was a low 1.56%. Net charge-offs of $1.8 million for the quarter
represented only 0.05% of average loans for the first quarter of 2001 compared
to 0.08% and 0.11% of average loans for the quarters ended March 31, 2000 and
December 31, 2000, respectively. United continues to be categorized as well
capitalized based on the risk-based capital ratio, considerably exceeding the
regulatory minimum requirement. These ratios support United's strong financial
position.
The 2001 annualized first quarter dividend of 22c per share equals
88c, which would represent the twenty-eighth consecutive year of dividend
increases for United shareholders.
Analysts are forecasting record earnings for United in 2001, and on
the basis of operating earnings, United continues to be one of the highest
performing regional banking companies in the country.
Recently, United Bankshares, Inc. was listed in the 2001 Forbes 500s
List according to the April 16, 2001 issue of Forbes magazine. For the second
consecutive year, United is the only West Virginia-based company to appear in
the Forbes 500s List. The Forbes 500s List measures profits, assets and sales
metrics of the nation's biggest firms.
Two other distinctions that United heralds are its inclusion in both
the S&P Small Cap 600 and Russell 2000 Indices. United was added to the Banks
(Regional) industry group of each of these indices during the second quarter of
1998, which made United the only regional bank in Maryland, Kentucky and West
Virginia included in the indices.
United Bankshares, with $5.0 billion in assets, has 76 full-service
offices in West Virginia, Virginia, Maryland, Ohio, and Washington, D.C.
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 evolving banking industry standards.
[UNITED BANKSHARES, INC. LOGO]
UNITED BANKSHARES, INC. AND SUBSIDIARIES
FINANCIAL SUMMARY
(In Thousands Except for Per Share Data)
Three Months Ended
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March 31 March 31 December 31
2001 2000 2000
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EARNINGS SUMMARY:
Interest income, taxable equivalent $ 94,865 $ 96,143 $ 98,061
Interest expense 47,777 46,542 51,427
Net interest income, taxable equivalent 47,088 49,601 46,634
Taxable equivalent adjustment 2,868 2,875 2,843
Net interest income 44,220 46,726 43,791
Provision for loan losses 2,499 2,547 4,908
Net income from mortgage banking operations 5,225 3,383 3,784
Gain (loss) on security transactions 142 318 (15,011)
Other noninterest income 8,578 7,100 8,424
Noninterest expenses 26,996 28,143 29,710
Income taxes 9,318 8,849 2,066
Net income 19,352 17,988 4,304
Cash dividends paid 9,175 8,879 8,782
PER COMMON SHARE:
Net income:
Basic 0.46 0.43 0.11
Diluted 0.46 0.42 0.11
Diluted - cash basis 0.47 0.44 0.12
Cash dividends paid 0.22 0.21 0.21
Book value 10.69 9.37 10.32
Closing market price 22.125 22.000 21.250
Common shares outstanding:
Actual, net of treasury shares 41,587,229 42,018,879 41,765,271
Average basic 41,703,350 42,272,860 41,775,776
Average diluted 42,020,236 42,657,425 42,072,051
FINANCIAL RATIOS:
Return on average assets 1.62% 1.45% 0.35%
Return on average shareholders' equity 17.87% 18.05% 4.03%
Average equity to average assets 9.05% 8.06% 8.69%
Net interest margin 4.10% 4.23% 4.03%
March 31 March 31 December 31
2001 2000 2000
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PERIOD END BALANCES:
Assets 4,984,804 4,980,745 4,904,547
Earning assets 4,762,807 4,734,578 4,643,668
Loans, net of unearned income 3,171,846 3,230,245 3,192,494
Loans held for sale 239,148 102,109 203,831
Investment securities 1,303,613 1,396,949 1,245,334
Total deposits 3,462,701 3,274,505 3,391,449
Shareholders' equity 445,084 393,822 430,870