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United Bankshares, Inc. Announces Increased Earnings

  United Bankshares, Inc. Announces Increased Earnings

Business Wire

WASHINGTON & CHARLESTON, W.V. -- April 25, 2013

United Bankshares, Inc. (NASDAQ: UBSI), today reported an increase in earnings
for the first quarter of 2013 as compared to the first quarter of 2012.
Earnings for the first quarter of 2013 were $21.6 million or $0.43 per diluted
share while earnings for the first quarter of 2012 were $21.0 million or $0.42
per diluted share.

United’s first quarter of 2013 results produced an annualized return on
average assets of 1.05% and an annualized return on average equity of 8.72%.
United’s annualized returns on average assets and average equity were 1.00%
and 8.63%, respectively, for the first quarter of 2012.

United’s asset quality continues to outperform its peers. United’s percentage
of nonperforming loans to loans, net of unearned income of 1.35% at March 31,
2013 compares favorably to the most recently reported percentage of 2.55% at
December 31, 2012 for United’s Federal Reserve peer group. At March 31, 2013,
nonperforming loans were $87.4 million, down from nonperforming loans of $92.8
million or 1.43% of loans, net of unearned income, at December 31, 2012. As of
March 31, 2013, the allowance for loan losses was $74.2 million or 1.15% of
loans, net of unearned income, as compared to $73.9 million or 1.13% of loans,
net of unearned income, at December 31, 2012. Total nonperforming assets of
$136.3 million, including OREO of $48.9 million at March 31, 2013, represented
1.64% of total assets which also compares favorably to the most recently
reported percentage of 1.97% at December 31, 2012 for United’s Federal Reserve
peer group.

United continues to be well-capitalized based upon regulatory guidelines.
United’s estimated risk-based capital ratio is 13.8% at March 31, 2013 while
its estimated Tier I capital and leverage ratios are 12.6% and 10.8%,
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 first quarter of 2013 was $68.3
million, a decrease of $2.3 million or 3% from the first quarter of 2012 due
mainly to a decrease in the average yield on earning assets. The first quarter
of 2013 average yield on earning assets decreased 19 basis points from the
first quarter of 2012. In addition, average earning assets decreased $138.5
million or 2% from the first quarter of 2012 as average short-term investments
and average investment securities declined $312.6 million and $77.0 million,
respectively. Average net loans did increase $251.1 million or 4% for the
first quarter of 2013 from the first quarter of 2012 to somewhat mitigate the
decreases in average short-term investments and investment securities.
Partially offsetting the decreases to tax-equivalent net interest income for
the first quarter of 2013 was a decline of 19 basis points in the average cost
of funds as compared to the first quarter of 2012. The net interest margin for
the first quarter of 2013 was 3.75%, which was a decrease of 3 basis points
from a net interest margin of 3.78% for the first quarter of 2012.

On a linked-quarter basis, United’s tax-equivalent net interest income for the
first quarter of 2013 decreased $3.0 million or 4% from the fourth quarter of
2012 due mainly to a decrease in the average yield on earning assets. The
first quarter of 2013 average yield on earning assets declined 9 basis points
while the average cost of funds only decreased 2 basis points from the fourth
quarter of 2012. Average earning assets were flat, decreasing $48.7 million or
less than 1% during the quarter. Average net loans and average investments
were flat for the quarter as well. Average net loans increased $2.3 million
while average investments increased $372 thousand. Average short-term
investments decreased $51.4 million or 19% for the quarter. The net interest
margin of 3.75% for the first quarter of 2013 was a decrease of 8 basis points
from the net interest margin of 3.83% for the fourth quarter of 2012.

For the quarters ended March 31, 2013 and 2012, the provision for loan losses
was $5.2 million and $4.1 million, respectively. Net charge-offs were $4.9
million for the first quarter of 2013 as compared to $4.0 million for the
first quarter of 2012. Annualized net charge-offs as a percentage of average
loans were 0.31% for the first quarter of 2013 as compared to 0.64% for
United’s Federal Reserve peer group for the year of 2012. On a linked-quarter
basis, the provision for loans losses decreased $760 thousand while net
charge-offs decreased $864 thousand from the fourth quarter of 2012.

Noninterest income for the first quarter of 2013 was $18.3 million, which was
an increase of $2.0 million from the first quarter of 2012. Included in
noninterest income for the first quarter of 2013 were noncash, before-tax,
other-than-temporary impairment charges of $834 thousand on certain investment
securities as compared to noncash, before-tax other-than-temporary impairment
charges of $1.4 million on certain investment securities for the first quarter
of 2012. 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 first quarter of 2013 increased $1.3
million or 7% from the first quarter of 2012. This increase for the first
quarter of 2013 was due primarily to increases of $1.1 million in income from
bank-owned life insurance policies due a death benefit and $647 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 $688 thousand in fees from deposit services.

On a linked-quarter basis, noninterest income for the first quarter of 2013
increased $1.6 million from the fourth quarter of 2012. Included in the
results for the first quarter of 2013 and fourth quarter of 2012 were noncash,
before-tax, other-than-temporary impairment charges of $834 thousand and $2.0
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 increased $557
thousand or 3% on a linked-quarter basis due primarily to an increase of $1.1
million in income from bank-owned life insurance policies due to the
previously mentioned death benefit. Partially offsetting this increase was a
decrease of $982 thousand in fees from deposit services.

Noninterest expense for the first quarter of 2013 was $48.2 million, a
decrease of $2.0 million or 4% from the first quarter of 2012. Employee
compensation for the first quarter of 2013 declined $1.3 million due mainly to
a decline in employees as a result of the merger of two banking subsidiaries
last year. In addition, other real estate owned (OREO) expense decreased $1.1
million as reductions to fair value and losses on sales declined from the
first quarter of 2012. Partially offsetting these decreases was an increase of
$801 thousand in employee benefits expense due mainly to higher pension and
health insurance costs. Also included in noninterest expense for the first
quarter of 2013 was an increase in merger expenses of $763 thousand.

On a linked-quarter basis, noninterest expense for the first quarter of 2013
decreased $1.0 million from the fourth quarter of 2012. Employee compensation
expense declined $1.7 million due to lower commissions and incentives while
OREO expense decreased $638 thousand as reductions to fair value and losses on
sales declined. Partially offsetting these decreases was an increase of $1.1
million in employee benefits expense due mainly to higher pension costs and
payroll taxes. Also, merger expenses increased $781 thousand from the fourth
quarter of 2012.

During the first quarter of 2013, United’s Board of Directors declared a cash
dividend of $0.31 per share. The annualized 2013 dividend of $1.24 equates to
a yield of approximately 5% based on recent UBSI market prices. The year of
2012 represented the 39th consecutive year of dividend increases for United
shareholders.

On January 30, 2013, United announced the signing of a definitive merger
agreement with Virginia Commerce Bancorp, Inc. (“VCBI”) headquartered in
Arlington, Virginia. VCBI has twenty-eight (28) banking offices, one
residential mortgage origination office and one wealth management office
located in the Northern Virginia suburbs of Washington, D.C. Consummation of
the merger is subject to approval of the shareholders of United and VCBI, the
receipt of all required regulatory approvals, as well as other customary
conditions.

United has consolidated assets of approximately $8.3 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 March 31, 2013
consolidated financial statements on Form 10-Q. As a result, the Company will
continue to evaluate the impact of any subsequent events on critical
accounting assumptions and estimates made as of March 31, 2013 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
                              March 31         March 31         December 31
                                                             
                              2013             2012             2012
EARNINGS SUMMARY:
Interest income, taxable      $ 77,849         $ 83,457         $ 81,300
equivalent (non-GAAP)
Interest expense                9,503            12,822           9,996
Net interest income,
taxable equivalent              68,346           70,635           71,304
(non-GAAP)
Taxable equivalent              1,524            1,669            1,632
adjustment
Net interest income (GAAP)      66,822           68,966           69,672
Provision for loan losses       5,187            4,133            5,947
Noninterest income              18,348           16,326           16,745
Noninterest expenses            48,249           50,262           49,273
Income taxes                    10,155           9,887            9,983
Net income                    $ 21,579         $ 21,010         $ 21,214
                                                                
PER COMMON SHARE:
Net income:
Basic                         $ 0.43           $ 0.42           $ 0.42
Diluted                         0.43             0.42             0.42
Cash dividends                  0.31             0.31             0.31
Book value                      19.87            19.42            19.74
Closing market price          $ 26.61          $ 28.86          $ 24.34
Common shares outstanding:
Actual at period end, net       50,337,922       50,274,104       50,276,573
of treasury shares
Weighted average- basic         50,301,875       50,235,374       50,276,137
Weighted average- diluted       50,331,503       50,300,538       50,294,593
                                                                
FINANCIAL RATIOS:
Return on average assets        1.05       %     1.00       %     1.01       %
Return on average               8.72       %     8.63       %     8.44       %
shareholders’ equity
Average equity to average       12.10      %     11.60      %     11.97      %
assets
Net interest margin             3.75       %     3.78       %     3.83       %
                                                                
                              March 31         March 31         December 31

                              2013             2012             2012
PERIOD END BALANCES:
Assets                        $ 8,313,828      $ 8,529,469      $ 8,420,013
Earning assets                  7,373,622        7,573,097        7,459,217
Loans, net of unearned          6,466,762        6,194,187        6,511,416
income
Loans held for sale             7,041            7,401            17,762
Investment securities           750,215          790,936          729,402
Total deposits                  6,682,712        6,881,610        6,752,986
Shareholders’ equity            1,000,249        976,303          992,251


UNITED BANKSHARES, INC. AND SUBSIDIARIES

Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)
                                                                
Consolidated Statements of Income
                                          Three Months Ended
                                          March        March        December
                                           2013       2012       2012   
                                                                    
Interest & Loan Fees Income (GAAP)        $ 76,325     $ 81,788     $ 79,668
Tax equivalent adjustment                  1,524      1,669      1,632  
Interest & Fees Income (FTE) (non-GAAP)     77,849       83,457       81,300
Interest Expense                           9,503      12,822     9,996  
Net Interest Income (FTE) (non-GAAP)        68,346       70,635       71,304
                                                                    
Provision for Loan Losses                   5,187        4,133        5,947
                                                                    
Non-Interest Income:
Fees from trust & brokerage services        3,830        3,984        3,678
Fees from deposit services                  9,624        10,312       10,606
Bankcard fees and merchant discounts        797          647          745
Other charges, commissions, and fees        561          577          539
Income from bank owned life insurance       2,389        1,289        1,248
Mortgage banking income                     965          318          851
Other non-interest revenue                  876          658          818
Net other-than-temporary impairment         (834   )     (1,377 )     (2,002 )
losses
Net gains (losses) on sales/calls of
investment                                 140        (82    )    262    

securities
Total Non-Interest Income                   18,348       16,326       16,745
                                                                    
Non-Interest Expense:
Employee compensation                       16,604       17,907       18,272
Employee benefits                           5,993        5,192        4,892
Net occupancy                               5,191        5,042        5,005
Data processing                             2,731        3,209        3,009
Amortization of intangibles                 534          762          669
OREO expense                                1,270        2,328        1,908
FDIC expense                                1,559        1,555        1,525
Other expenses                             14,367     14,267     13,993 
Total Non-Interest Expense                 48,249     50,262     49,273 
                                                                    
Income Before Income Taxes (FTE)           33,258     32,566     32,829 
(non-GAAP)
                                                                    
Tax equivalent adjustment                  1,524      1,669      1,632  
                                                                    
Income Before Income Taxes (GAAP)           31,734       30,897       31,197
                                                                    
Taxes                                      10,155     9,887      9,983  
                                                                    
Net Income                                $ 21,579    $ 21,010    $ 21,214 
                                                                    
MEMO: Effective Tax Rate                    32.00  %     32.00  %     32.00  %

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)
                                                                 
Consolidated
Balance Sheets
                      March 31        March 31
                        2013            2012          March 31        December 31
                      Q-T-D Average   Q-T-D Average    2013          2012      
                                                                      
Cash & Cash           $ 363,161       $ 664,743       $ 362,647       $ 432,077
Equivalents
                                                                      
Securities              636,420         688,880         650,640         625,625
Available for Sale
Securities Held to      43,317          58,999          43,266          43,467
Maturity
Other Investment       58,898        67,813        56,309        60,310    
Securities
Total Securities       738,635       815,692       750,215       729,402   
Total Cash and         1,101,796     1,480,435     1,112,862     1,161,479 
Securities
                                                                      
Loans Held for Sale     10,830          4,905           7,041           17,762
                                                                      
Commercial Loans        4,689,363       4,375,024       4,696,991       4,726,292
Mortgage Loans          1,482,234       1,545,793       1,481,796       1,490,306
Consumer Loans         296,939       301,076       294,783       301,182   
                                                                      
Gross Loans             6,468,536       6,221,893       6,473,570       6,517,780
                                                                      
Unearned Income        (6,766    )    (6,574    )    (6,808    )    (6,364    )
                                                                      
Loans, Net of           6,461,770       6,215,319       6,466,762       6,511,416
Unearned Income
                                                                      
Allowance for Loan      (74,410   )     (73,142   )     (74,158   )     (73,901   )
Losses
                                                                      
Goodwill                375,583         371,638         375,583         375,583
Other Intangibles      9,852         12,726        9,573         10,107    
Total Intangibles       385,435         384,364         385,156         385,690
                                                                      
Real Estate Owned       48,559          51,373          48,850          49,484
Other Assets           361,652       379,556       367,315       368,083   
Total Assets          $ 8,295,632    $ 8,442,810    $ 8,313,828    $ 8,420,013 
                                                                      
MEMO: Earning         $ 7,360,062    $ 7,498,574    $ 7,373,622    $ 7,459,217 
Assets
                                                                      
Interest-bearing      $ 4,904,286     $ 5,163,834     $ 4,872,367     $ 4,928,575
Deposits
Noninterest-bearing    1,731,775     1,637,543     1,810,345     1,824,411 
Deposits
Total Deposits          6,636,061       6,801,377       6,682,712       6,752,986
                                                                      
Short-term              313,360         270,647         268,884         314,962
Borrowings
Long-term              284,883       345,323       284,850       284,926   
Borrowings
Total Borrowings        598,243         615,970         553,734         599,888
                                                                      
Other Liabilities      57,475        45,781        77,133        74,888    
Total Liabilities      7,291,779     7,463,128     7,313,579     7,427,762 
                                                                      
Preferred Equity        ---             ---             ---             ---
Common Equity          1,003,853     979,682       1,000,249     992,251   
Total Shareholders'    1,003,853     979,682       1,000,249     992,251   
Equity
                                                                      
Total Liabilities &   $ 8,295,632    $ 8,442,810    $ 8,313,828    $ 8,420,013 
Equity
                                                                      
MEMO:
Interest-bearing      $ 5,502,529    $ 5,779,804    $ 5,426,101    $ 5,528,463 
Liabilities

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)
                                                            
                              Three Months Ended
                              March            March            December
Quarterly Share Data:          2013           2012           2012       
                                                                
Earnings Per Share:
Basic                         $ 0.43           $ 0.42           $ 0.42
Diluted                       $ 0.43           $ 0.42           $ 0.42
                                                                
Common Dividend Declared      $ 0.31           $ 0.31           $ 0.31
Per Share
                                                                
High Common Stock Price       $ 27.24          $ 30.91          $ 25.80
Low Common Stock Price        $ 24.80          $ 27.36          $ 23.02
                                                                
Average Shares Outstanding
(Net of Treasury Stock):
Basic                           50,301,875       50,235,374       50,276,137
Diluted                         50,331,503       50,300,538       50,294,593
                                                                
Memorandum Items:
                                                                
Tax Applicable to Security    $ 49             $ (29        )   $ 92
Sales/Calls
                                                                
Common Dividends              $ 15,605         $ 15,570         $ 15,587
                                                                
Dividend Payout Ratio           72.32      %     74.11      %     73.48      %
                                                                
                              March            March            December
EOP Share Data:                2013           2012           2012       
                                                                
Book Value Per Share          $ 19.87          $ 19.42          $ 19.74
Tangible Book Value Per       $ 12.22          $ 11.71          $ 12.06
Share ^(1)
                                                                
52-week High Common Stock     $ 29.45          $ 30.91          $ 30.91
Price
Date                            04/02/12         03/19/12         03/19/12
52-week Low Common Stock      $ 22.54          $ 18.78          $ 22.54
Price
Date                            08/02/12         09/22/11         08/02/12
                                                                
EOP Shares Outstanding (Net     50,337,922       50,274,104       50,276,573
of Treasury Stock):
                                                                
Memorandum Items:
                                                                
EOP Employees (full-time        1,527            1,637            1,529
equivalent)
                                                                
Note:
(1) Tangible Book Value Per
Share:
Total Shareholders' Equity    $ 1,000,249      $ 976,303        $ 992,251
(GAAP)
Less: Total Intangibles        (385,156   )    (387,766   )    (385,690   )
Tangible Equity (non-GAAP)    $ 615,093        $ 588,537        $ 606,561
÷ EOP Shares Outstanding        50,337,922       50,274,104       50,276,573
(Net of Treasury Stock)
Tangible Book Value Per       $ 12.22          $ 11.71          $ 12.06
Share (non-GAAP)


UNITED BANKSHARES, INC. AND SUBSIDIARIES

Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)
                                                                
                                            Three Months Ended
                                            March       March       December
                                            2013       2012       2012   
Selected Yields and Net Interest Margin:
Net Loans                                   4.61  %     5.02  %     4.74   %
Investment Securities                       2.59  %     3.08  %     2.65   %
Money Market Investments/FFS                0.23  %     0.26  %     0.39   %
Average Earning Assets Yield                4.28  %     4.47  %     4.37   %
Interest-bearing Deposits                   0.58  %     0.67  %     0.60   %
Short-term Borrowings                       0.26  %     0.09  %     0.16   %
Long-term Borrowings                        3.31  %     4.83  %     3.36   %
Average Liability Costs                     0.70  %     0.89  %     0.72   %
Net Interest Spread                         3.58  %     3.58  %     3.65   %
Net Interest Margin                         3.75  %     3.78  %     3.83   %
                                                                             
Selected Financial Ratios:
                                                                             
Return on Average Common Equity             8.72  %     8.63  %     8.44   %
Return on Average Assets                    1.05  %     1.00  %     1.01   %
Loan / Deposit Ratio                        96.77 %     90.10 %     96.42  %
Allowance for Loan Losses/ Loans, net of    1.15  %     1.19  %     1.13   %
unearned income
Allowance for Credit Losses ^(1)/ Loans,    1.18  %     1.22  %     1.16   %
net of unearned income
Nonaccrual Loans / Loans, net of unearned   1.14  %     1.00  %     1.10   %
income
90-Day Past Due Loans/ Loans, net of        0.13  %     0.16  %     0.28   %
unearned income
Non-performing Loans/ Loans, net of         1.35  %     1.23  %     1.43   %
unearned income
Non-performing Assets/ Total Assets         1.64  %     1.48  %     1.69   %
Primary Capital Ratio                       12.83 %     12.23 %     12.57  %
Shareholders' Equity Ratio                  12.03 %     11.45 %     11.78  %
Price / Book Ratio                          1.34    x   1.49    x   1.23     x
Price / Earnings Ratio                      15.52   x   17.27   x   14.82    x
Efficiency Ratio                            53.15 %     53.35 %     52.01  %
                                                                             
Note: (1) Includes allowances for loan losses and lending-related commitments.


UNITED BANKSHARES, INC. AND SUBSIDIARIES

Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)
                                                           
                        March                 March             December
Asset Quality Data:        2013               2012            2012     
                                                                
EOP Non-Accrual         $   73,811            $  62,037         $  71,559
Loans
EOP 90-Day Past Due         8,301                9,816             18,068
Loans
EOP Restructured           5,309              4,335           3,175    
Loans ^(2)
Total EOP
Non-performing          $   87,421            $  76,188         $  92,802
Loans
                                                                
EOP Other Real
Estate & Assets            48,850             49,864          49,484   
Owned
Total EOP
Non-performing          $   136,271          $  126,052       $  142,286  
Assets
                                                                
                        Three Months Ended
                        March                 March             December
Allowance for              2013               2012            2012     
Credit Losses:^(1)
Beginning Balance       $   75,557            $  75,727         $  75,536
Provision for              5,416              4,015           5,815    
Credit Losses ^(3)
                            80,973               79,742            81,351
Gross Charge-offs           (5,184    )          (4,734   )        (6,180   )
Recoveries                 254                739             386      
Net Charge-offs            (4,930    )         (3,995   )       (5,794   )
Ending Balance          $   76,043           $  75,747        $  75,557   
                                                                
Note: (1) Includes allowances for loan losses and lending-related commitments.
(2) Restructured loans with an aggregate balance of $375, $2,283 and $375 at
March 31, 2013, March 31, 2012 and December 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, 800-445-1347, ext. 8704
Chief Financial Officer
 
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