EXHIBIT 99.1
News Release
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[LOGO] UNITED
BANKSHARES, INC.
For Immediate Release Contact: Steven E. Wilson
April 18, 2002 Chief Financial Officer
(304) 424-8704
United Bankshares, Inc. Announces 13% Increase
In Earnings for the First Quarter of 2002
PARKERSBURG, WV--United Bankshares, Inc. (NASDAQ: UBSI), today reported
record first quarter 2002 earnings of $21.8 million or 50(cent) per share. These
results represent a 13% increase over earnings of $19.4 million or 46(cent) per
share for the first quarter of 2001.
United's key financial performance indicators continue to be strong. First
quarter of 2002 results produced a return on average assets of 1.61% and a
return on average equity of 17.19%. These financial performance ratios are
indicative of United's earnings strength and balanced capital levels.
Tax-equivalent net interest income for the first quarter of 2002 was $53.5
million, an increase of $6.4 million or 14% from the first quarter of 2001. The
net interest margin for the first quarter 2002 was 4.16%, a 6 basis points
increase over the first quarter of 2001's net interest margin of 4.10%. The
margin increase was primarily attributable to a $560.7 million or 12% increase
in average earning assets resulting mainly from the Century Bancshares
acquisition that was consummated on December 7, 2001. On a linked quarter basis,
net interest income increased $2.4 million or 5% while the net interest margin
increased 9 basis points from 4.07% in the fourth quarter of 2001.
Excluding security transactions, noninterest income for the first quarter
of 2002 increased $2.4 million or 18% from the first quarter of 2001. Fees from
deposit services and wealth management increased 19% and 13%, respectively, for
the first quarter of 2002 as compared to the first quarter of 2001. Income from
mortgage banking increased $1.2 million or 23% from the first quarter of 2001 as
lower interest rates favorably impacted mortgage refinancing and home
purchasing. Mortgage loans sold in the secondary market during the first quarter
of 2002 increased 67% from the first quarter of 2001 while loan originations
increased 20% during the same time period. Mortgage loans sold in the secondary
market during the first quarter of 2002 declined from their peak in the fourth
quarter of 2001. As a result, noninterest income, excluding security
transactions, for the first quarter of 2002 declined 4% from the fourth quarter
of 2001.
Noninterest expense increased $5.0 million or 19% for the quarter compared
to the prior year's first quarter and $1.6 million or 5% compared to the linked
quarter mainly due to increased employee salaries and benefits from the Century
Bancshares acquisition. In the first
United Bankshares, Inc. Announces...
April 18, 2002
Page Two
quarter of 2002, United adopted FASB Statement No. 142, and discontinued the
amortization of goodwill. As a result, nontax-deductible goodwill amortization
of $464 thousand was not recorded during the first quarter of 2002. United's
efficiency ratio for the first quarter of 2002 was 44.9%, which compares very
favorably to peer group banking companies and to past performance.
United's credit quality continues to be sound. At March 31, 2002,
nonperforming loans were $14.4 million or 0.41% of loans, net of unearned income
compared to $17.6 million or 0.50% of loans, net of unearned income at December
31, 2001. Net charge-offs of $1.7 million represented only 0.05% of average
loans for the first quarter of 2002 compared to 0.06% and 0.11% of average loans
for the quarters ended March 31, 2001 and December 31, 2001, respectively. For
the quarters ended March 31, 2002 and 2001, the provision for loan losses was
$2.2 million and $2.5 million, respectively. As of March 31, 2002, the allowance
for loan losses was $47.9 million or 1.37% of loans, net of unearned income,
compared to 1.35% at December 31, 2001.
During the quarter, United's Board of Directors declared a cash dividend of
23(cent) per share, a 5% increase over the 22(cent) per share declared in the
first quarter of 2001. The 2002 annualized first quarter dividend of 23(cent)
per share equals 92(cent), which would represent the twenty-ninth consecutive
year of dividend increases for United shareholders.
Analysts are forecasting record earnings for United in 2002 as United
continues to be one of the highest performing regional banking companies in the
country. For the year 2002, United estimates earnings to be $2.06 per share, an
8% increase from $1.90 per share earned for the year 2001.
United Bankshares, with $5.6 billion in assets, has 83 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 evolving banking industry standards.
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
2002 2001 2001
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EARNINGS SUMMARY:
Interest income, taxable equivalent $ 88,041 $ 94,865 $ 89,575
Interest expense 34,590 47,777 38,542
Net interest income, taxable equivalent 53,451 47,088 51,033
Taxable equivalent adjustment 2,803 2,868 2,954
Net interest income 50,648 44,220 48,079
Provision for loan losses 2,227 2,499 4,046
Net income from mortgage banking operations 6,450 5,225 7,481
(Loss) gain on security transactions (304) 142 705
Other noninterest income 9,791 8,578 9,422
Noninterest expenses 32,030 26,996 30,414
Income taxes 10,507 9,318 10,152
Net income 21,821 19,352 21,075
Cash dividends declared 9,870 9,174 9,892
PER COMMON SHARE:
Net income:
Basic 0.51 0.46 0.51
Diluted 0.50 0.46 0.49
Cash dividends declared 0.23 0.22 0.23
Book value 11.81 10.69 11.80
Closing market price 29.53 22.125 28.86
Common shares outstanding:
Actual, net of treasury shares 42,812,217 41,587,229 42,926,511
Average basic 42,899,060 41,703,350 41,559,161
Average diluted 43,548,650 42,020,236 42,217,513
FINANCIAL RATIOS:
Return on average assets 1.61% 1.62% 1.58%
Return on average shareholders' equity 17.19% 17.87% 17.36%
Average equity to average assets 9.39% 9.05% 9.11%
Net interest margin 4.16% 4.10% 4.07%
March 31 March 31 December 31
2002 2001 2001
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PERIOD END BALANCES:
Assets 5,557,581 4,984,804 $5,631,775
Earning assets 5,290,237 4,762,807 5,301,211
Loans, net of unearned income 3,491,455 3,171,846 3,502,334
Loans held for sale 223,388 239,148 368,625
Investment securities 1,473,583 1,303,613 1,428,716
Total deposits 3,818,901 3,462,701 3,787,793
Shareholders' equity 505,636 445,084 506,529