United Bankshares, Inc. Announces Increased Earnings

  United Bankshares, Inc. Announces Increased Earnings

Business Wire

WASHINGTON, D.C. & CHARLESTON, W.Va. -- January 29, 2013

United Bankshares, Inc. (NASDAQ: UBSI), today reported an increase in earnings
for the fourth quarter and the year of 2012 as compared to the fourth quarter
and year of 2011. Earnings for the fourth quarter of 2012 were $21.2 million
or $0.42 per diluted share, up 5% from earnings of $20.3 million or $0.40 per
diluted share for the fourth quarter of 2011. Earnings for the year of 2012
were $82.6 million or $1.64 per diluted share, an increase of 9% from earnings
of $75.6 million or $1.61 per diluted share for the year of 2011.

“The year 2012 was another successful year for United,” stated Richard M.
Adams, United’s Chairman of the Board and Chief Executive Officer. “Earnings
rose from 2011 while the dividend to shareholders was increased for the 39th
consecutive year. Only one other major banking company in the USA has achieved
such a dividend record.”

Fourth quarter of 2012 results produced a return on average assets of 1.01%
and a return on average equity of 8.44%. For the year of 2012, United’s return
on average assets was 0.98% while the return on average equity was 8.35%.
United’s annualized returns on average assets and average equity were 0.94%
and 8.17%, respectively, for the fourth quarter of 2011 while the returns on
average assets and average equity was 0.97% and 8.50%, respectively, for the
year of 2011.

The results for the fourth quarter and year of 2012 included noncash,
before-tax, other-than-temporary impairment charges of $2.0 million and $7.4
million, respectively, on certain investment securities. In comparison, the
results for the fourth quarter and year of 2011 included noncash, before-tax,
other-than-temporary impairment charges of $6.3 million and $20.4 million,
respectively, on certain investment securities. Also included in the results
for the year of 2012 was an accrual of $3.3 million with respect to a
settlement of claims asserted in class actions against United Bank, Inc. of
West Virginia. In addition, United completed its acquisition of Centra
Financial Holdings, Inc. (Centra) during the third quarter of 2011. As a
result, comparisons for the year of 2012 to the year of 2011 are impacted by
increased levels of average balances, income, and expense due to the
acquisition. At consummation, Centra had assets of approximately $1.3 billion,
loans of $1.0 billion, deposits of $1.1 billion and shareholders' equity of
$131 million.

United’s asset quality continues to outperform its peers. United’s percentage
of nonperforming loans to loans, net of unearned income of 1.43% at December
31, 2012 compares favorably to the most recently reported percentage of 2.86%
at September 30, 2012 for United’s Federal Reserve peer group. At December 31,
2012, nonperforming loans were $92.8 million, up from nonperforming loans of
$79.7 million or 1.28% of loans, net of unearned income, at December 31, 2011.
During the third quarter of 2012, loans totaling $20.5 million to two
commercial customers were placed on nonaccrual status. The loss potential on
these loans has been properly evaluated and allocated within the company’s
allowance for loan losses. As of December 31, 2012, the allowance for loan
losses was $73.9 million or 1.13% of loans, net of unearned income, which was
comparable to $73.9 million or 1.19% of loans, net of unearned income, at
December 31, 2011. Total nonperforming assets of $142.3 million, including
OREO of $49.5 million at December 31, 2012, represented 1.69% of total assets
which also compares favorably to the most recently reported percentage of
2.21% at September 30, 2012 for United’s Federal Reserve peer group.

United continues to be well-capitalized based on all regulatory guidelines.
United’s estimated risk-based capital ratio is 13.7% at December 31, 2012
while its Tier I capital and leverage ratios are 12.4% and 10.6%,
respectively. The regulatory requirements for a well-capitalized financial
institution are a risk-based capital ratio of 10%, a Tier I capital ratio of
6% and a leverage ratio of 5%.

Tax-equivalent net interest income for the fourth quarter of 2012 was $71.3
million, a decrease of $2.4 million or 3% from the fourth quarter of 2011 due
mainly to a decrease in the average yield on earning assets. The fourth
quarter of 2012 average yield on earning assets decreased 22 basis points from
the fourth quarter of 2011. In addition, average earning assets decreased
$142.9 million or 2% from the fourth quarter of 2011 as average short-term
investments and average investment securities declined $270.3 million and
$83.8 million, respectively. Average net loans did increase $211.2 million or
3% for the fourth quarter of 2012 from the fourth quarter of 2011 partially
offsetting the decreases in average short-term investments and investment
securities. Partially offsetting the decreases to tax-equivalent net interest
income for the fourth quarter of 2012 was a decline of 20 basis points in the
average cost of funds as compared to the fourth quarter of 2011. The net
interest margin for the fourth quarter of 2012 was 3.83%, which was a decrease
of 5 basis points from a net interest margin of 3.88% for the fourth quarter
of 2011.

Tax-equivalent net interest income for the year of 2012 was $284.1 million, an
increase of $16.8 million or 6% from the year of 2011. This increase in
tax-equivalent net interest income was primarily attributable to an increase
in average earning assets from the Centra acquisition. Average earning assets
increased $553.6 million or 8% from the year of 2011. Average net loans
increased $600.9 million or 11% for the year of 2012. In addition, the average
cost of funds declined 22 basis points from the year of 2011. Partially
offsetting the increases to tax-equivalent net interest income for the year of
2012 was a decline of 25 basis points in the average yield on earning assets
as compared to the year of 2011. The net interest margin for the year of 2012
was 3.81%, which was a decrease of 6 basis points from a net interest margin
of 3.87% for the year of 2011.

On a linked-quarter basis, United’s tax-equivalent net interest income for the
fourth quarter of 2012 was flat from the third quarter of 2012, decreasing
$262 thousand or less than 1% due mainly to a decrease in the average yield on
earning assets. The fourth quarter of 2012 average yield on earning assets
decreased 11 basis points while the average cost of funds decreased 9 basis
points from the third quarter of 2012. Average earning assets were flat during
the quarter as average net loans grew $101.4 million while average short-term
investments and average investment securities decreased $54.5 million and $8.0
million, respectively. The net interest margin of 3.83% for the fourth quarter
of 2012 was a decrease of 4 basis points from the net interest margin of 3.87%
for the third quarter of 2012.

For the quarters ended December 31, 2012 and 2011, the provision for loan
losses was $5.9 million and $4.3 million, respectively, while the provision
for the year of 2012 was $17.9 million as compared to $17.1 million for the
year of 2011. Net charge-offs were $5.8 million and $17.8 million for the
fourth quarter and year of 2012, respectively, as compared to $3.9 million and
$16.3 million for the same time periods in 2011. Annualized net charge-offs as
a percentage of average loans were 0.36% and 0.28% for the fourth quarter and
year of 2012, respectively. United’s most recently reported Federal Reserve
peer group’s net charge-offs to average loans percentage was 0.64% for the
third quarter of 2012.

Noninterest income for the fourth quarter of 2012 was $16.7 million, which was
an increase of $4.9 million from the fourth quarter of 2011. Included in
noninterest income for the fourth quarter of 2012 were noncash, before-tax,
other-than-temporary impairment charges of $2.0 million on certain investment
securities as compared to noncash, before-tax other-than-temporary impairment
charges of $6.3 million on certain investment securities for the fourth
quarter of 2011. Excluding the results of the noncash, other-than-temporary
impairment charges as well as net gains and losses from sales and calls of
investment securities, noninterest income for the fourth quarter of 2012 would
have increased $275 thousand or 2% from the fourth quarter of 2011. This
increase for the fourth quarter of 2012 was due primarily to increases of $362
thousand in income from trust and brokerage services due to increases in
volume and the value of assets under management and $469 thousand in mortgage
banking income due to increased production and sales of mortgage loans in the
secondary market. Partially offsetting these increases was a decrease of $524
thousand in fees from deposit services.

Noninterest income for the year of 2012 was $66.3 million, which was an
increase of $15.5 million from the year of 2011. Included in noninterest
income for the year of 2012 were noncash, before-tax, other-than-temporary
impairment charges of $7.4 million on certain investment securities as
compared to noncash, before-tax, other-than-temporary impairment charges of
$20.4 million on certain investment securities for the year of 2011. Excluding
the results of the noncash, other-than-temporary impairment charges as well as
net gains and losses from sales and calls of investment securities,
noninterest income for the year of 2012 would have increased $3.6 million or
5% from the year of 2011. This increase for the year of 2012 was due primarily
to increases of $2.5 million in income from trust and brokerage services due
to increases in volume and the value of assets under management and $1.5
million in mortgage banking income due to increased production and sales of
mortgage loans in the secondary market.

On a linked-quarter basis, noninterest income for the fourth quarter of 2012
was flat from the third quarter of 2012, increasing $111 thousand or less than
1%. Included in the results for the fourth quarter of 2012 and third quarter
of 2012 were noncash, before-tax, other-than-temporary impairment charges of
$2.0 million and $2.3 million, respectively. Excluding the results of the
noncash, other-than-temporary impairment charges as well as net gains and
losses from sales and calls of investment securities, noninterest income would
have decreased $337 thousand or 2% on a linked-quarter basis due primarily to
a decrease of $492 thousand in income from trust and brokerage services due to
a decrease in volume.

Noninterest expense for the fourth quarter of 2012 was $49.3 million, a
decrease of $756 thousand or 2% from the fourth quarter of 2011. Merger
expenses of $744 thousand related to the acquisition of Centra was included in
the results for the fourth quarter of 2011. In addition, equipment expense for
the fourth quarter of 2012 declined $728 thousand due to lower amounts of
maintenance and depreciation expense. Partially offsetting these amounts were
increases of $516 thousand and $404 thousand in employee compensation and
benefits expense, respectively.

Noninterest expense for the year of 2012 was $204.7 million, an increase of
$20.6 million or 11% from the year of 2011 as employee compensation increased
$6.8 million due to additional employees from the Centra merger and employee
benefits increased $3.8 million due mainly to an increase in pension costs. In
addition, the increase was partially due to the previously mentioned
litigation settlement accrual. The remainder of the increase in noninterest
expense from the year of 2011 was due mainly to the additional offices and
equipment from the Centra merger.

On a linked-quarter basis, noninterest expense for the fourth quarter of 2012
decreased $4.6 million or 9% from the third quarter of 2012. This decrease was
due primarily to the litigation settlement accrual in the third quarter. In
addition, data processing fees declined $666 thousand as United completed its
conversion to a new servicer.

During the fourth quarter of 2012, United’s Board of Directors declared a cash
dividend of $0.31 per share. The 2012 dividend of $1.24 per share represented
the 39th consecutive year of dividend increases for United shareholders.

United has consolidated assets of approximately $8.4 billion with 115 full
service offices in West Virginia, Virginia, Maryland, Ohio, Pennsylvania and
Washington, D.C. United Bankshares stock is traded on the NASDAQ Global Select
Market under the quotation symbol "UBSI".

Cautionary Statements

The Company is required under generally accepted accounting principles to
evaluate subsequent events through the filing of its December 31, 2012
consolidated financial statements on Form 10-K. As a result, the Company will
continue to evaluate the impact of any subsequent events on critical
accounting assumptions and estimates made as of December 31, 2012 and will
adjust amounts preliminarily reported, if necessary.

Forward-Looking Statements

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

FINANCIAL SUMMARY

(In Thousands Except for Per Share Data)
                                                 
                      Three Months Ended            Year Ended
                      December 31   December 31     December 31   December 31
                                                               
                      2012          2011            2012          2011
EARNINGS SUMMARY:
Interest income,
taxable equivalent    $ 81,300      $ 87,261        $ 330,310     $ 323,109
(non-GAAP)
Interest expense      9,996         13,537          46,190        55,794
Net interest income,
taxable equivalent    71,304        73,724          284,120       267,315
(non-GAAP)
Taxable equivalent    1,632         1,732           6,413         6,587
adjustment
Net interest income   69,672        71,992          277,707       260,728
(GAAP)
Provision for loan    5,947         4,268           17,862        17,141
losses
Noninterest income    16,745        11,874          66,292        50,837
Noninterest expenses  49,273        50,029          204,656       184,048
Income taxes          9,983         9,312           38,874        34,766
Net income            $ 21,214      $ 20,257        $ 82,607      $ 75,610
                                                                  
PER COMMON SHARE:
Net income:
Basic                 $ 0.42        $ 0.40          $ 1.64        $ 1.62
Diluted               0.42          0.40            1.64          1.61
Cash dividends        $ 0.31        $ 0.31          1.24          1.21
Book value                                          19.74         19.29
Closing market price                                $ 24.34       $ 28.27
Common shares
outstanding:
Actual at period end,
net of treasury                                     50,276,573    50,212,948
shares
Weighted average-     50,276,137    50,207,410      50,265,620    46,803,432
basic
Weighted average-     50,294,593    50,235,812      50,298,019    46,837,363
diluted
                                                                  
FINANCIAL RATIOS:
Return on average     1.01%         0.94%           0.98%         0.97%
assets
Return on average     8.44%         8.17%           8.35%         8.50%
shareholders’ equity
Average equity to     11.97%        11.56%          11.78%        11.44%
average assets
Net interest margin   3.83%         3.88%           3.81%         3.87%
                                                                  
                      December 31   December 31     December 31   September 30

                      2012          2011            2010          2012
PERIOD END BALANCES:
Assets                $ 8,420,013   $ 8,451,470     $ 7,155,719   $ 8,381,378
Earning assets        7,459,217     7,492,400       6,334,914     7,426,785
Loans, net of         6,511,416     6,230,777       5,260,326     6,422,613
unearned income
Loans held for sale   17,762        3,902           6,869         12,905
Investment securities 729,402       824,219         794,715       766,713
Total deposits        6,752,986     6,819,010       5,713,534     6,753,924
Shareholders’ equity  992,251       968,844         793,012       988,429

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)
                                                                
Consolidated
Statements of Income
                     Three Months Ended
                     December    December    September   June        March
                     2012        2011        2012        2012        2012
                                                                     
Interest & Loan Fees $ 79,668    $ 85,529    $ 81,336    $ 81,105    $ 81,788
Income (GAAP)
Tax equivalent        1,632      1,732      1,552      1,560      1,669
adjustment
Interest & Fees
Income (FTE)           81,300      87,261      82,888      82,665      83,457
(non-GAAP)
Interest Expense      9,996      13,537     11,322     12,050     12,822
Net Interest Income    71,304      73,724      71,566      70,615      70,635
(FTE) (non-GAAP)
                                                                     
Provision for Loan     5,947       4,268       4,346       3,436       4,133
Losses
                                                                     
Non-Interest Income:
Fees from trust &      3,678       3,316       4,170       4,013       3,984
brokerage services
Fees from deposit      10,606      11,130      10,521      10,393      10,312
services
Bankcard fees and      745         643         866         738         647
merchant discounts
Other charges,
commissions, and       539         559         513         600         577
fees
Income from bank       1,248       1,339       1,247       1,255       1,289
owned life insurance
Mortgage banking       851         382         819         483         318
income
Other non-interest     818         841         686         648         658
revenue
Net
other-than-temporary   (2,002)     (6,286)     (2,255)     (1,742)     (1,377)
impairment losses
Net gains (losses)
on sales/calls of
investment            262        (50)       67         199        (82)

securities
Total Non-Interest    16,745     11,874     16,634     16,587     16,326
Income
                                                                     
Non-Interest
Expense:
Employee               18,272      17,756      17,258      17,965      17,907
compensation
Employee benefits      4,892       4,488       5,271       5,823       5,192
Net occupancy          5,005       5,018       5,060       5,321       5,042
Data processing        3,009       3,019       3,675       2,639       3,209
Amortization of        669         832         697         724         762
intangibles
OREO expense           1,908       1,879       2,160       2,160       2,328
FDIC expense           1,525       1,496       1,489       1,495       1,555
Other expenses        13,993     15,541     18,259     15,125     14,267
Total Non-Interest    49,273     50,029     53,869     51,252     50,262
Expense
                                                                     
Income Before Income
Taxes (FTE)            32,829      31,301      29,985      32,514      32,566
(non-GAAP)
                                                                     
Tax equivalent        1,632      1,732      1,552      1,560      1,669
adjustment
                                                                     
Income Before Income   31,197      29,569      28,433      30,954      30,897
Taxes (GAAP)
                                                                     
Taxes                 9,983      9,312      9,099      9,905      9,887
                                                                     
Net Income           $ 21,214    $ 20,257    $ 19,334    $ 21,049    $ 21,010
                                                                     
MEMO: Effective Tax    32.00%      31.49%      32.00%      32.00%      32.00%
Rate

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)
                                                                  
Consolidated Statements of Income
                                    Year Ended
                                    December    December   December   December
                                    2012        2011       2010       2009
                                                                      
Interest & Loan Fees Income (GAAP)  $ 323,897   $316,522   $323,382   $365,845
Tax equivalent adjustment           6,413       6,587      5,906      11,199
Interest & Fees Income (FTE)        330,310     323,109    329,288    377,044
(non-GAAP)
Interest Expense                    46,190      55,794     85,196     120,374
Net Interest Income (FTE)           284,120     267,315    244,092    256,670
(non-GAAP)
                                                                      
Provision for Loan Losses           17,862      17,141     13,773     46,065
                                                                      
Non-Interest Income:
Fees from trust & brokerage         15,845      13,343     13,637     13,065
services
Fees from deposit services          41,832      42,110     39,220     40,289
Bankcard fees and merchant          2,996       2,572      4,786      4,155
discounts
Other charges, commissions, and     2,229       1,849      1,918      1,906
fees
Income from bank owned life         5,039       5,286      4,673      3,416
insurance
Mortgage banking income             2,471       952        662        608
Other non-interest revenue          2,810       3,563      5,116      5,236
Net other-than-temporary impairment (7,376)     (20,414)   (9,815)    (15,020)
losses
Net gains on sales/calls of
investment                          446         1,576      2,006      315

securities
Total Non-Interest Income           66,292      50,837     62,203     53,970
                                                                      
Non-Interest Expense:
Employee compensation               71,402      64,611     60,564     58,901
Employee benefits                   21,178      17,358     16,749     19,192
Net occupancy                       20,428      18,596     17,246     17,018
Data processing                     12,532      11,637     10,820     10,880
Amortization of intangibles         2,852       2,429      1,884      2,561
OREO expense                        8,556       7,008      11,131     5,487
FDIC expense                        6,064       8,468      9,684      9,177
Other expenses                      61,644      53,941     54,134     51,911
Total Non-Interest Expense          204,656     184,048    182,212    175,127
                                                                      
Income Before Income Taxes (FTE)    127,894     116,963    110,310    89,448
(non-GAAP)
                                                                      
Tax equivalent adjustment           6,413       6,587      5,906      11,199
                                                                      
Income Before Income Taxes (GAAP)   121,481     110,376    104,404    78,249
                                                                      
Taxes                               38,874      34,766     32,457     10,951
                                                                      
Net Income                          $ 82,607    $75,610    $71,947    $67,298
                                                                      
MEMO: Effective Tax Rate            32.00%      31.50%     31.09%     14.00%

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)
                                                                   
Consolidated
Balance Sheets
                    December     December
                    31           31
                    2012         2011         December     December     December
                                              31           31           31
                    Q-T-D        Q-T-D        2012         2011         2010
                    Average      Average
                                                                        
Cash & Cash         $423,373     $669,533     $432,077     $636,003     $461,389
Equivalents
                                                                        
Securities          626,516      692,540      625,625      696,518      653,276
Available for Sale
Securities Held to  50,311       60,415       43,467       59,289       67,036
Maturity
Other Investment    61,436       69,096       60,310       68,412       74,403
Securities
Total Securities    738,263      822,051      729,402      824,219      794,715
Total Cash and      1,161,636    1,491,584    1,161,479    1,460,222    1,256,104
Securities
                                                                        
Loans Held for Sale 11,160       5,582        17,762       3,902        6,869
                                                                        
Commercial Loans    4,665,208    4,377,276    4,726,292    4,378,345    3,533,559
Mortgage Loans      1,499,636    1,565,638    1,490,306    1,556,905    1,459,286
Consumer Loans      299,598      315,022      301,182      299,030      270,506
                                                                        
Gross Loans         6,464,442    6,257,936    6,517,780    6,234,280    5,263,351
                                                                        
Unearned Income     (6,011)      (5,263)      (6,364)      (3,503)      (3,025)
                                                                        
Loans, Net of       6,458,431    6,252,673    6,511,416    6,230,777    5,260,326
Unearned Income
                                                                        
Allowance for Loan  (73,727)     (73,562)     (73,901)     (73,874)     (73,033)
Losses
                                                                        
Goodwill            375,583      372,902      375,583      375,626      311,765
Other Intangibles   10,521       11,641       10,107       12,950       2,940
Total Intangibles   386,104      384,543      385,690      388,576      314,705
                                                                        
Real Estate Owned   47,870       51,729       49,484       51,760       44,770
Other Assets        368,097      399,503      368,083      390,107      345,978
Total Assets        $8,359,571   $8,512,052   $8,420,013   $8,451,470   $7,155,719
                                                                        
MEMO: Earning       $7,408,771   $7,551,646   $7,459,217   $7,492,400   $6,334,914
Assets
                                                                        
Interest-bearing    $4,936,757   $5,227,649   $4,928,575   $5,199,848   $4,510,279
Deposits
Noninterest-bearing 1,795,810    1,614,185    1,824,411    1,619,162    1,203,255
Deposits
Total Deposits      6,732,567    6,841,834    6,752,986    6,819,010    5,713,534
                                                                        
Short-term          293,034      285,747      314,962      254,766      193,214
Borrowings
Long-term           284,954      353,220      284,926      345,366      386,458
Borrowings
Total Borrowings    577,988      638,967      599,888      600,132      579,672
                                                                        
Other Liabilities   48,568       47,436       74,888       63,484       69,501
Total Liabilities   7,359,123    7,528,237    7,427,762    7,482,626    6,362,707
                                                                        
Preferred Equity    ---          ---          ---          ---          ---
Common Equity       1,000,448    983,815      992,251      968,844      793,012
Total Shareholders' 1,000,448    983,815      992,251      968,844      793,012
Equity
                                                                        
Total Liabilities & $8,359,571   $8,512,052   $8,420,013   $8,451,470   $7,155,719
Equity
                                                                        
MEMO:
Interest-bearing    $5,514,745   $5,866,616   $5,528,463   $5,799,980   $5,089,951
Liabilities

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)
                                                               
                Three Months Ended
                December     December     September    June         March
Quarterly Share 2012         2011         2012         2012         2012
Data:
                                                                    
Earnings Per
Share:
Basic           $ 0.42       $ 0.40       $ 0.38       $ 0.42       $ 0.42
Diluted         $ 0.42       $ 0.40       $ 0.38       $ 0.42       $ 0.42
                                                                    
Common Dividend
Declared Per    $ 0.31       $ 0.31       $ 0.31       $ 0.31       $ 0.31
Share
                                                                    
High Common     $ 25.80      $ 29.29      $ 26.40      $ 29.45      $ 30.91
Stock Price
Low Common      $ 23.02      $ 19.06      $ 22.54      $ 23.87      $ 27.36
Stock Price
                                                                    
Average Shares
Outstanding
(Net of
Treasury
Stock):
Basic           50,276,137   50,207,410   50,276,074   50,274,665   50,235,374
Diluted         50,294,593   50,235,812   50,295,162   50,308,228   50,300,538
                                                                    
Memorandum
Items:
                                                                    
Tax Applicable
to Security     $ 92         $ (18)       $ 23         $ 70         $ (29)
Sales/Calls
                                                                    
Common          $ 15,587     $ 15,571     $ 15,589     $ 15,605     $ 15,570
Dividends
                                                                    
Dividend Payout 73.48%       76.87%       80.63%       74.14%       74.11%
Ratio
                                                                    
                             Year Ended
                             December     December     December     December
YTD Share Data:              2012         2011         2010         2009
                                                                    
Earnings Per
Share:
Basic                        $ 1.64       $ 1.62       $ 1.65       $ 1.55
Diluted                      $ 1.64       $ 1.61       $ 1.65       $ 1.55
                                                                    
Common Dividend
Declared Per                 $ 1.24       $ 1.21       $ 1.20       $ 1.17
Share
                                                                    
Average Shares
Outstanding
(Net of
Treasury
Stock):
Basic                        50,265,620   46,803,432   43,547,965   43,410,431
Diluted                      50,298,019   46,837,363   43,625,183   43,456,889
                                                                    
Memorandum
Items:
                                                                    
Tax Applicable
to Security                  $ 156        $ 552        $ 702        $ 110
Sales/Calls
                                                                    
Common                       $ 62,351     $ 56,827     $ 52,300     $ 50,837
Dividends
                                                                    
Dividend Payout              75.48%       75.16%       72.69%       75.54%
Ratio
                                                                    
EOP Employees
(full-time                   1,529        1,619        1,451        1,477
equivalent)

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)
                                                                        
                 Three Months Ended
                 December       December         September    June           March
EOP Share Data:  2012           2011             2012         2012           2012
                                                                             
Book Value Per   $ 19.74        $19.29           $ 19.66      $ 19.52        $ 19.42
Share
Tangible Book
Value Per Share  $ 12.06        $11.56           $ 11.98      $ 11.82        $ 11.71
^(1)
                                                                             
52-week High
Common Stock     $ 30.91        $30.84           $ 30.91      $ 30.91        $ 30.91
Price
Date               03/19/12     01/19/11         03/19/12       03/19/12       03/19/12
52-week Low
Common Stock     $ 22.54        $18.78           $ 19.06      $ 18.78        $ 18.78
Price
Date               08/02/12     09/22/11         10/04/11       09/22/11       09/22/11
                                                                             
EOP Shares
Outstanding (Net   50,276,573   50,212,948       50,275,998     50,275,869     50,274,104
of Treasury
Stock):
                                                                             
Note:
(1) Tangible
Book Value Per
Share:
Total
Shareholders'    $ 992,251      $ 968,844        $ 988,429    $ 981,181      $ 976,303
Equity (GAAP)
Less: Total       (385,690)    (388,576)        (386,359)     (387,056)     (387,766)
Intangibles
Tangible Equity  $ 606,561      $ 580,268        $ 602,070    $ 594,125      $ 588,537
(non-GAAP)
÷ EOP Shares
Outstanding (Net   50,276,573   50,212,948       50,275,998     50,275,869     50,274,104
of Treasury
Stock)
Tangible Book
Value Per Share  $ 12.06        $ 11.56          $ 11.98      $ 11.82        $ 11.71
(non-GAAP)
                                                                             
                 Three Months Ended
                 December       December   September        June             March
                 2012           2011       2012             2012             2012
Selected Yields
and Net Interest
Margin:
                                                                             
Net Loans          4.74%        5.18%      4.85%            5.01%              5.02%
Investment         2.65%        3.08%      3.28%            2.91%              3.08%
Securities
Money Market       0.39%        0.23%      0.18%            0.27%              0.26%
Investments/FFS
Average Earning    4.37%        4.59%      4.48%            4.41%              4.47%
Assets Yield
Interest-bearing   0.60%        0.69%      0.63%            0.65%              0.67%
Deposits
Short-term         0.16%        0.08%      0.08%            0.10%              0.09%
Borrowings
Long-term          3.36%        4.85%      4.73%            4.78%              4.83%
Borrowings
Average            0.72%        0.92%      0.81%            0.84%              0.89%
Liability Costs
Net Interest       3.65%        3.67%      3.67%            3.57%              3.58%
Spread
Net Interest       3.83%        3.88%      3.87%            3.76%              3.78%
Margin
                                                                             
Selected
Financial
Ratios:
                                                                             
Return on
Average Common     8.44%        8.17%      7.76%            8.58%              8.63%
Equity
Return on          1.01%        0.94%      0.92%            1.00%              1.00%
Average Assets
Efficiency Ratio   52.01%       51.47%     56.44%           54.50%             53.35%

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)
                                 
                                   Year Ended                            
                                   December   December   December   December
                                   2012       2011       2010       2009
Selected Yields and Net
Interest Margin:
Net Loans                          4.90%      5.18%      5.30%      5.46%
Investment Securities              2.98%      3.61%      4.65%      5.08%
Money Market Investments/FFS       0.27%      0.28%      0.31%      0.18%
Average Earning Assets Yield       4.43%      4.68%      4.91%      5.27%
Interest-bearing Deposits          0.64%      0.82%      1.21%      1.75%
Short-term Borrowings              0.11%      0.06%      0.06%      0.14%
Long-term Borrowings               4.45%      4.79%      4.30%      4.24%
Average Liability Costs            0.82%      1.04%      1.53%      1.98%
Net Interest Spread                3.61%      3.64%      3.38%      3.29%
Net Interest Margin                3.81%      3.87%      3.64%      3.59%
                                                                             
Selected Financial Ratios:
Return on Average Common           8.35%      8.50%      9.19%      8.81%
Equity
Return on Average Assets           0.98%      0.97%      0.95%      0.85%
Loan / Deposit Ratio               96.42%     91.37%     92.07%     96.08%
Allowance for Loan Losses/         1.13%      1.19%      1.39%      1.18%
Loans, Net of Unearned Income
Allowance for Credit Losses
^(1)/ Loans, Net of Unearned       1.16%      1.22%      1.43%      1.22%
Income
Nonaccrual Loans / Loans, Net      1.10%      0.96%      1.14%      0.89%
of Unearned Income
90-Day Past Due Loans/ Loans,      0.28%      0.26%      0.13%      0.35%
Net of Unearned Income
Non-performing Loans/ Loans,       1.43%      1.28%      1.28%      1.26%
Net of Unearned Income
Non-performing Assets/ Total       1.69%      1.56%      1.57%      1.44%
Assets
Primary Capital Ratio              12.57%     12.25%     12.00%     10.56%
Shareholders' Equity Ratio         11.78%     11.46%     11.08%     9.76%
Price / Book Ratio                 1.23     x 1.47     x 1.61     x 1.14     x
Price / Earnings Ratio             14.82    x 17.51    x 17.71    x 12.90    x
Efficiency Ratio                   54.08%     51.81%     53.87%     51.35%
                                                                             
Note: (1) Includes allowances for loan losses and lending-related commitments.

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)
                                                               
                December     December     September     June         March
Asset Quality   2012         2011         2012          2012         2012
Data:
                                                                     
EOP Non-Accrual $ 71,559     $ 59,892     $ 81,861      $ 63,279     $ 62,037
Loans
EOP 90-Day Past 18,068       16,179       12,475        10,029       9,816
Due Loans
EOP
Restructured    3,175        3,592        4,091         4,255        4,335
Loans ^(2)
Total EOP
Non-performing  $ 92,802     $ 79,663     $ 98,427      $ 77,563     $ 76,188
Loans
                                                                     
EOP Other Real
Estate & Assets 49,484       51,760       50,040        48,608       49,864
Owned
Total EOP
Non-performing  $142,286     $131,423     $ 148,467     $ 126,171    $ 126,052
Assets
                                                                     
                                                                     
                Three Months Ended        Year Ended
                December     December     December      December     December
Allowance for
Credit          2012         2011         2012          2011         2010
Losses:^(1)
Beginning       $75,536      $75,494      $75,727       $75,039      $70,010
Balance
Provision for
Credit Losses ^ 5,815        4,136        17,665        16,988       13,773
(3)
                81,351       79,630       93,392        92,027       83,783
Gross           (6,180)      (4,398)      (20,555)      (19,605)     (25,762)
Charge-offs
Recoveries      386          495          2,720         3,305        17,018
Net Charge-offs (5,794)      (3,903)      (17,835)      (16,300)     (8,744)
Ending Balance  $75,557      $75,727      $75,557       $75,727      $75,039
                                                                     
Notes:
(1) Includes allowances for loan losses and lending-related commitments.
(2) Restructured loans with an aggregate balance of $375, $1,277, $1,427 and
$2,283 at December 31, 2012, September 30, 2012, June 30, 2012 and March 31,
2012, respectively, were on nonaccrual status, but are not included in the
“EOP Non-Accrual Loans.”
(3) Includes the Provision for Loan Losses and a provision for lending-related
commitments included in Other Expenses.

Contact:

United Bankshares, Inc.
Steven E. Wilson, Chief Financial Officer
800-445-1347 ext. 8704
 
Press spacebar to pause and continue. Press esc to stop.