United Bankshares, Inc. Announces Increased Earnings for the Year of 2013

  United Bankshares, Inc. Announces Increased Earnings for the Year of 2013

Business Wire

WASHINGTON & CHARLESTON, W.V. -- January 30, 2014

United Bankshares, Inc. (NASDAQ: UBSI), today reported an increase in earnings
for the year of 2013 as compared to the year of 2012. Earnings for the year of
2013 were $85.6 million or $1.70 per diluted share, an increase from earnings
of $82.6 million or $1.64 per diluted share for the year of 2012. Earnings for
the fourth quarter of 2013 were $19.7 million or $0.39 per diluted share as
compared to earnings of $21.2 million or $0.42 per diluted share for the
fourth quarter of 2012.

“The year 2013 was another successful year for United,” stated Richard M.
Adams, United’s Chairman of the Board and Chief Executive Officer. “Earnings
rose from 2012 while the dividend to shareholders was increased for the 40th
consecutive year. We also announced the signing of a definitive merger
agreement with Virginia Commerce Bancorp, Inc., the largest acquisition in
United’s history.”

Fourth quarter of 2013 results produced a return on average assets of 0.91%
and a return on average equity of 7.57%. For the year of 2013, United’s return
on average assets was 1.02% while the return on average equity was 8.43%.
United’s annualized returns on average assets and average equity were 1.01%
and 8.44%, respectively, for the fourth quarter of 2012 while the returns on
average assets and average equity were 0.98% and 8.35%, respectively, for the
year of 2012.

The results for the fourth quarter and year of 2013 included noncash,
before-tax, other-than-temporary impairment charges of $6.4 million and $7.3
million, respectively, on certain investment securities. 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. 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.

United’s asset quality continues to outperform its peers. United’s percentage
of nonperforming loans to loans, net of unearned income of 1.21% at December
31, 2013 compares favorably to the most recently reported percentage of 1.91%
at September 30, 2013 for United’s Federal Reserve peer group. At December 31,
2013, nonperforming loans were $81.1 million, down from nonperforming loans of
$92.8 million or 1.43% of loans, net of unearned income, at December 31, 2012.
As of December 31, 2013, the allowance for loan losses was $74.2 million or
1.11% of loans, net of unearned income, which was comparable to $73.9 million
or 1.13% of loans, net of unearned income, at December 31, 2012. Total
nonperforming assets of $119.3 million, including OREO of $38.2 million at
December 31, 2013, represented 1.37% of total assets which also compares
favorably to the most recently reported percentage of 1.52% at September 30,
2013 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, 2013
while its Tier I capital and leverage ratios are 12.5% and 10.7%,
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 2013 was $70.7
million which was relatively flat from the fourth quarter of 2012, decreasing
$646 thousand or less than 1%. The slight decrease was due mainly to a decline
in the average yield on earning assets. The fourth quarter of 2013 average
yield on earning assets decreased 27 basis points from the fourth quarter of
2012. Partially offsetting this decrease to tax-equivalent net interest income
for the fourth quarter of 2013 was an increase of $256.6 million or 3% in
average earning assets from the fourth quarter of 2012. Average net loans and
average investment securities increased $179.6 million or 3% and $108.8
million or 15%, respectively, while short-term investments declined $31.8
million or 12%. In addition, the average cost of funds for the fourth quarter
of 2013 declined 13 basis points as compared to the fourth quarter of 2012.
The net interest margin for the fourth quarter of 2013 was 3.66%, which was a
decrease of 17 basis points from a net interest margin of 3.83% for the fourth
quarter of 2012.

Tax-equivalent net interest income for the year of 2013 was $275.8 million, a
decrease of $8.3 million or 3% from the year of 2012 due mainly to a decrease
in the average yield on earning assets. The year of 2013 average yield on
earning assets decreased 27 basis points from the year of 2012. In addition,
average short-term investments declined $203.6 million or 46% for the year.
Partially offsetting the decreases to tax-equivalent net interest income for
the year of 2013 was a decline of 17 basis points in the average cost of funds
as compared to the year of 2012. Average earning assets were flat, increasing
$46.6 million or less than 1% from the year of 2012 as average net loans grew
$220.3 million or 4% and average investment securities increased $29.9 million
or 4% for the year. The net interest margin for the year of 2013 was 3.68%,
which was a decrease of 13 basis points from a net interest margin of 3.81%
for the year of 2012.

On a linked-quarter basis, United’s tax-equivalent net interest income for the
fourth quarter of 2013 increased $1.5 million or 2% due mainly to an increase
in average earning assets and a decrease in the average cost of funds. Average
earning assets increased $128.1 million or 2% during the quarter. Average net
loans increased $99.1 million or 2% for the quarter. Average investment
securities increased $25.6 million or 3% while average short-term investments
increased $3.3 million or 1% for the quarter. The fourth quarter of 2013
average cost of funds decreased 5 basis points while the average yield on
earning assets decreased 2 basis points from the third quarter of 2013. The
net interest margin of 3.66% for the fourth quarter of 2013 was an increase of
1 basis point from the net interest margin of 3.65% for the third quarter of
2013.

For the quarters ended December 31, 2013 and 2012, the provision for loan
losses was $4.3 million and $5.9 million, respectively, while the provision
for the year of 2013 was $19.3 million as compared to $17.9 million for the
year of 2012. Net charge-offs were $4.7 million and $19.0 million for the
fourth quarter and year of 2013, respectively, as compared to $5.8 million and
$17.8 million for the same time periods in 2012. Annualized net charge-offs as
a percentage of average loans were 0.28% and 0.29% for the fourth quarter and
year of 2013, respectively.

Noninterest income for the fourth quarter of 2013 was $12.0 million, which was
a decrease of $4.7 million from the fourth quarter of 2012. Included in
noninterest income for the fourth quarter of 2013 were noncash, before-tax,
other-than-temporary impairment charges of $6.4 million on certain investment
securities as compared to $2.0 million for the fourth 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 fourth quarter of 2013 decreased $1.0 million or 5%
from the fourth quarter of 2012. This decrease for the fourth quarter of 2013
was due primarily to decreases of $589 thousand in mortgage banking income due
to decreased sales of mortgage loans in the secondary market and $534 thousand
in fees from deposit services due to lower overdraft fee income.

Noninterest income for the year of 2013 was $67.8 million, which was an
increase of $1.5 million from the year of 2012. Included in noninterest income
for the year of 2013 were noncash, before-tax, other-than-temporary impairment
charges of $7.3 million on certain investment securities as compared to
noncash, before-tax other-than-temporary impairment charges of $7.4 million on
certain investment securities for the year 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 year of 2013 was relatively flat from the year of 2012, increasing $415
thousand or less than 1%. This slight increase for the year of 2013 was due
primarily to increases of $749 thousand in income from bank-owned life
insurance policies due to a death benefit, $602 thousand in revenue from trust
and brokerage services due to increased volume and value of assets under
management and $595 thousand in fees from bankcard services due to increased
volume. Virtually offsetting these increases was a decrease of $1.6 million in
fees from deposit services due to lower overdraft fee income.

On a linked-quarter basis, noninterest income for the fourth quarter of 2013
decreased $6.3 million from the third quarter of 2013. Included in noninterest
income for the fourth quarter of 2013 were noncash, before-tax,
other-than-temporary impairment charges of $6.4 million on certain investment
securities as compared to no charges for the third quarter of 2013. 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 2013 decreased $761 thousand or
4% from the third quarter of 2013. This decrease for the fourth quarter of
2013 was due primarily to decreases of $343 thousand in mortgage banking
income due to decreased sales of mortgage loans in the secondary market and
$269 thousand in fees from deposit services due to lower overdraft fee income.

Noninterest expense for the fourth quarter of 2013 was $48.0 million, a
decrease of $1.3 million or 3% from the fourth quarter of 2012. The decrease
for the fourth quarter of 2013 was mainly due to declines of $1.0 million in
employee compensation due to lower expense for incentives and $602 thousand
for other real estate owned (OREO) expense due to fewer declines in the fair
value of OREO properties as compared to the fourth quarter of 2012. Partially
offsetting these decreases was an increase of $568 thousand in employee
benefits expense due mainly to higher health insurance and pension costs. Also
included in noninterest expense for the fourth quarter of 2013 was an increase
in merger expenses of $449 thousand.

Noninterest expense for the year of 2013 was $193.4 million, a decrease of
$11.3 million or 6% from the year of 2012. Included in the results for the
year of 2012 was the litigation settlement accrual of $3.3 million. Otherwise,
employee compensation for the year of 2013 declined $3.3 million due to a
reduction in employees from a merger of banking subsidiaries in 2012. In
addition, OREO expense decreased $2.1 million as reductions to fair value and
losses on sales declined, data processing expense declined $1.1 million due to
a change in servicers, net occupancy expense declined $610 thousand due to a
decline in offices and equipment expense decreased $559 thousand due mainly to
a decline in maintenance costs from the year of 2012. Partially offsetting
these decreases was an increase of $1.8 million in employee benefits expense
due mainly to higher health care and pension costs. Also included in
noninterest expense for the year of 2013 was an increase in merger expenses of
$1.3 million.

On a linked-quarter basis, noninterest expense for the fourth quarter of 2013
decreased $608 thousand or 1% from the third quarter of 2013. This decline was
due primarily to decreases of $382 thousand in employee benefits expense
because of a decrease in pension costs as a result of an increase in the value
of the underlying assets and $229 thousand in OREO expense due to fewer
reductions in the fair value and losses on sales of OREO properties as
compared to the third quarter of 2013.

During the fourth quarter of 2013, United’s Board of Directors declared a cash
dividend of $0.32 per share. The 2013 dividend of $1.25 per share represented
the 40th 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. (“Virginia Commerce”)
headquartered in Arlington, Virginia. Virginia Commerce 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.
United and Virginia Commerce are scheduled to merge tomorrow, January 31,
2014, after the close of business.

Currently, United has consolidated assets of approximately $8.7 billion with
113 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, 2013
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, 2013 and will
adjust amounts preliminarily reported, if necessary.

Use of non-GAAP Financial Measures

This press release contains certain financial measures that are not recognized
under U.S. generally accepted accounting principles ("GAAP"). Generally,
United has presented these “non-GAAP” financial measures because it believes
that these measures provide meaningful additional information to assist in the
evaluation of United’s results of operations or financial position.
Presentation of these non-GAAP financial measures is consistent with how
United’s management evaluates its performance internally and these non-GAAP
financial measures are frequently used by securities analysts, investors and
other interested parties in the evaluation of companies in the banking
industry.

Specifically, this press release contains certain references to financial
measures identified as tax-equivalent (FTE) net interest income, noninterest
income 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, tangible equity and tangible book value per share. Management
believes these non-GAAP financial measures to be helpful in understanding
United’s results of operations or financial position.

Net interest income is presented in this press release on a tax-equivalent
basis. The tax-equivalent basis adjusts for the tax-favored status of income
from certain loans and investments. Although this is a non-GAAP measure,
United’s management believes this measure is more widely used within the
financial services industry and provides better comparability of net interest
income arising from taxable and tax-exempt sources. United uses this measure
to monitor net interest income performance and to manage its balance sheet
composition. The tax-equivalent adjustment combines amounts of interest income
on federally nontaxable loans and investment securities using the statutory
federal income tax rate of 35%.

GAAP total non-interest income results are adjusted for other-than-temporary
impairment charges (OTTI) on certain investment securities and net gains or
losses on the sale of securities. Management believes noninterest income
without OTTI charges and net securities gains or losses is more indicative of
United’s performance because it isolates income that is primarily customer
relationship driven and is more indicative of normalized operations. In
addition, these items can fluctuate greatly from quarter to quarter and are
difficult to predict.

Tangible common equity is calculated as GAAP total shareholders’ equity minus
total intangible assets. Tangible common equity can thus be considered the
most conservative valuation of the company. Tangible common equity is also
presented on a per common share basis. Management provides these amounts to
facilitate the understanding of as well as to assess the quality and
composition of United’s capital structure. By removing the effect of
intangible assets that result from merger and acquisition activity, the
“permanent” items of common equity are presented. These two measures, along
with others, are used by management to analyze capital adequacy.

Where non-GAAP financial measures are used, the comparable GAAP financial
measure, as well as reconciliation to that comparable GAAP financial measure
can be found in the attached financial information tables to this press
release. Investors should recognize that United’s presentation of these
non-GAAP financial measures might not be comparable to similarly titled
measures at other companies. These non-GAAP financial measures should not be
considered a substitute for GAAP basis measures and United strongly encourages
a review of its condensed consolidated financial statements in their entirety.

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
                2013             2012             2013             2012
EARNINGS                                                        
SUMMARY:
Interest
income,
taxable         $ 79,111         $ 81,300         $ 312,153        $ 330,310
equivalent
(non-GAAP)
Interest          8,453            9,996            36,313           46,190
expense
Net interest
income,
taxable           70,658           71,304           275,840          284,120
equivalent
(non-GAAP)
Taxable
equivalent        1,472            1,632            5,999            6,413
adjustment
Net interest      69,186           69,672           269,841          277,707
income (GAAP)
Provision for     4,343            5,947            19,267           17,862
loan losses
Noninterest       12,046           16,745           67,828           66,292
income
Noninterest       47,977           49,273           193,358          204,656
expenses
Income taxes      9,252            9,983            39,416           38,874
Net income      $ 19,660         $ 21,214         $ 85,628         $ 82,607
                                                                   
PER COMMON
SHARE:
Net income:
Basic           $ 0.39           $ 0.42           $ 1.70           $ 1.64
Diluted           0.39             0.42             1.70             1.64
Cash            $ 0.32           $ 0.31             1.25             1.24
dividends
Book value                                          20.66            19.74
Closing                                           $ 31.45          $ 24.34
market price
Common shares
outstanding:
Actual at
period end,
net of                                              50,430,267       50,276,573
treasury
shares
Weighted
average-          50,417,452       50,276,137       50,353,452       50,265,620
basic
Weighted
average-          50,564,497       50,294,593       50,426,078       50,298,019
diluted
                                                                   
FINANCIAL
RATIOS:
Return on
average           0.91       %     1.01       %     1.02       %     0.98       %
assets
Return on
average           7.57       %     8.44       %     8.43       %     8.35       %
shareholders’
equity
Average
equity to         12.01      %     11.97      %     12.07      %     11.78      %
average
assets
Net interest      3.66       %     3.83       %     3.68       %     3.81       %
margin
                                                                   
                December 31      December 31      December 31      September 30
                2013             2012             2011             2013
PERIOD END
BALANCES:
Assets          $ 8,735,324      $ 8,420,013      $ 8,451,470      $ 8,513,818
Earning           7,805,772        7,459,217        7,492,400        7,565,955
assets
Loans, net of
unearned          6,704,583        6,511,416        6,230,777        6,595,495
income
Loans held        4,236            17,762           3,902            3,760
for sale
Investment        889,342          729,402          824,219          859,269
securities
Total             6,621,571        6,752,986        6,819,010        6,605,634
deposits
Shareholders’     1,041,732        992,251          968,844          1,017,711
equity

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
                        2013          2012            2013            2013            2013     
                                                                                           
Interest & Loan Fees   $ 77,639      $ 79,668        $ 76,705        $ 75,485        $ 76,325
Income (GAAP)
Tax equivalent          1,472         1,632           1,494           1,509           1,524    
adjustment
Interest & Fees
Income (FTE)             79,111         81,300           78,199           76,994           77,849
(non-GAAP)
Interest Expense        8,453         9,996           9,075           9,282           9,503    
Net Interest Income      70,658         71,304           69,124           67,712           68,346
(FTE) (non-GAAP)
                                                                                           
Provision for Loan       4,343          5,947            4,777            4,960            5,187
Losses
                                                                                           
Non-Interest Income:
Fees from trust &        4,241          3,678            4,006            4,370            3,830
brokerage services
Fees from deposit        10,072         10,606           10,341           10,208           9,624
services
Bankcard fees and        892            745              1,003            899              797
merchant discounts
Other charges,
commissions, and         461            539              599              626              561
fees
Income from bank         1,076          1,248            1,138            1,185            2,389
owned life insurance
Mortgage banking         262            851              605              739              965
income
Other non-interest       469            818              542              861              876
revenue
Net
other-than-temporary     (6,361 )       (2,002   )       0                (137     )       (834     )
impairment losses
Net gains on
sales/calls of
investment              934           262             101             348             140      

securities
Total Non-Interest      12,046        16,745          18,335          19,099          18,348   
Income
                                                                                           
Non-Interest
Expense:
Employee                 17,244         18,272           17,269           16,957           16,604
compensation
Employee benefits        5,460          4,892            5,842            5,675            5,993
Net occupancy            4,875          5,005            4,931            4,821            5,191
Data processing          2,970          3,009            2,880            2,813            2,731
Amortization of          450            669              479              506              534
intangibles
OREO expense             1,306          1,908            1,535            2,330            1,270
FDIC expense             1,526          1,525            1,539            1,564            1,559
Other expenses          14,146        13,993          14,110          13,881          14,367   
Total Non-Interest      47,977        49,273          48,585          48,547          48,249   
Expense
                                                                                           
Income Before Income
Taxes (FTE)              30,384         32,829           34,097           33,304           33,258
(non-GAAP)
                                                                                           
Tax equivalent          1,472         1,632           1,494           1,509           1,524    
adjustment
                                                                                           
Income Before Income     28,912         31,197           32,603           31,795           31,734
Taxes (GAAP)
                                                                                           
Taxes                   9,252         9,983           10,433          9,576           10,155   
                                                                                           
Net Income             $ 19,660     $ 21,214       $ 22,170       $ 22,219       $ 21,579   
                                                                                           
MEMO: Effective Tax      32.00  %       32.00    %       32.00    %       30.12    %       32.00    %
Rate

Note: Non-Interest Income excluding the results of noncash, other-than-temporary impairment charges
as well as net gains and losses from sales and calls of

investment securities (non-GAAP):
                                                                                           
Total Non-Interest    $ 12,046       $  16,745       $  18,335       $  19,099       $  18,348
Income (GAAP)
Less: Net
other-than-temporary     (6,361 )         (2,002 )         0                (137   )         (834   )
impairment losses
(GAAP)
Less: Net gains on
sales/calls of
investment             934            262            101            348            140    

securities (GAAP)
Non-Interest Income
excluding the
results of noncash,

other-than-temporary                                                                 
impairment charges                                      
as well as            $            $                            $             $        
                                                       $ 
net gains and losses    17,473          18,485           18,234          18,888          19,042
from sales and calls
of investment

securities
(non-GAAP)


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
                          2013        2012        2011        2010    
                                                                   
Interest & Loan Fees     $ 306,154     $ 323,897     $ 316,522     $ 323,382
Income (GAAP)
Tax equivalent            5,999       6,413       6,587       5,906   
adjustment
Interest & Fees
Income (FTE)               312,153       330,310       323,109       329,288
(non-GAAP)
Interest Expense          36,313      46,190      55,794      85,196  
Net Interest Income        275,840       284,120       267,315       244,092
(FTE) (non-GAAP)
                                                                   
Provision for Loan         19,267        17,862        17,141        13,773
Losses
                                                                   
Non-Interest Income:
Fees from trust &          16,447        15,845        13,343        13,637
brokerage services
Fees from deposit          40,245        41,832        42,110        39,220
services
Bankcard fees and          3,591         2,996         2,572         4,786
merchant discounts
Other charges,             2,247         2,229         1,849         1,918
commissions, and fees
Income from bank           5,788         5,039         5,286         4,673
owned life insurance
Mortgage banking           2,571         2,471         952           662
income
Other non-interest         2,748         2,810         3,563         5,116
revenue
Net
other-than-temporary       (7,332  )     (7,376  )     (20,414 )     (9,815  )
impairment losses
Net gains on
sales/calls of
investment                1,523       446         1,576       2,006   

securities
Total Non-Interest        67,828      66,292      50,837      62,203  
Income
                                                                   
Non-Interest Expense:
Employee compensation      68,074        71,402        64,611        60,564
Employee benefits          22,970        21,178        17,358        16,749
Net occupancy              19,818        20,428        18,596        17,246
Data processing            11,394        12,532        11,637        10,820
Amortization of            1,969         2,852         2,429         1,884
intangibles
OREO expense               6,441         8,556         7,008         11,131
FDIC expense               6,188         6,064         8,468         9,684
Other expenses            56,504      61,644      53,941      54,134  
Total Non-Interest        193,358     204,656     184,048     182,212 
Expense
                                                                   
Income Before Income
Taxes (FTE)                131,043       127,894       116,963       110,310
(non-GAAP)
                                                                   
Tax equivalent            5,999       6,413       6,587       5,906   
adjustment
                                                                   
Income Before Income       125,044       121,481       110,376       104,404
Taxes (GAAP)
                                                                   
Taxes                     39,416      38,874      34,766      32,457  
                                                                   
Net Income               $ 85,628     $ 82,607     $ 75,610     $ 71,947  
                                                                   
MEMO: Effective Tax        31.52   %     32.00   %     31.50   %     31.09   %
Rate
Note: Non-Interest Income excluding the results of noncash,
other-than-temporary impairment charges as well as net gains and losses from
sales and calls of

investment securities (non-GAAP):
                                                                   
Total Non-Interest       $ 67,828      $ 66,292      $ 50,837      $ 62,203
Income (GAAP)
Less: Net
other-than-temporary       (7,332  )     (7,376  )     (20,414 )     (9,815  )
impairment losses
(GAAP)
Less: Net gains on
sales/calls of
investment                1,523       446         1,576       2,006   

securities (GAAP)
Non-Interest Income
excluding the results
of noncash,

other-than-temporary                                          
impairment charges as
well as                                                           

net gains and losses     $ 73,637      $ 73,222      $ 69,675      $ 70,012
from sales and calls
of investment

securities (non-GAAP)
                                                                             

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 31     December 31
                        2013            2012          December 31     December 31     December 31
                      Q-T-D Average   Q-T-D Average    2013          2012          2011      
                                                                                      
Cash & Cash           $ 376,412       $ 423,373       $ 416,617       $ 432,077       $ 636,003
Equivalents
                                                                                      
Securities              735,626         626,516         775,284         625,625         696,518
Available for Sale
Securities Held to      41,902          50,311          40,965          43,467          59,289
Maturity
Other Investment       69,539        61,436        73,093        60,310        68,412    
Securities
Total Securities       847,067       738,263       889,342       729,402       824,219   
Total Cash and         1,223,479     1,161,636     1,305,959     1,161,479     1,460,222 
Securities
                                                                                      
Loans Held for Sale     2,586           11,160          4,236           17,762          3,902
                                                                                      
Commercial Loans        4,867,199       4,665,208       4,926,537       4,726,292       4,378,345
Mortgage Loans          1,461,033       1,499,636       1,460,327       1,490,306       1,556,905
Consumer Loans         328,015       299,598       326,735       301,182       299,030   
                                                                                      
Gross Loans             6,656,247       6,464,442       6,713,599       6,517,780       6,234,280
                                                                                      
Unearned Income        (8,643    )    (6,011    )    (9,016    )    (6,364    )    (3,503    )
                                                                                      
Loans, Net of           6,647,604       6,458,431       6,704,583       6,511,416       6,230,777
Unearned Income
                                                                                      
Allowance for Loan      (74,689   )     (73,727   )     (74,198   )     (73,901   )     (73,874   )
Losses
                                                                                      
Goodwill                375,559         375,583         375,547         375,583         375,626
Other Intangibles      8,379         10,521        8,138         10,107        12,950    
Total Intangibles       383,938         386,104         383,685         385,690         388,576
                                                                                      
Real Estate Owned       39,553          47,870          38,182          49,484          51,760
Other Assets           351,867       368,097       372,877       368,083       390,107   
Total Assets          $ 8,574,338    $ 8,359,571    $ 8,735,324    $ 8,420,013    $ 8,451,470 
                                                                                      
MEMO: Earning         $ 7,665,396    $ 7,408,771    $ 7,805,772    $ 7,459,217    $ 7,492,400 
Assets
                                                                                      
Interest-bearing      $ 4,773,397     $ 4,936,757     $ 4,747,051     $ 4,928,575     $ 5,199,848
Deposits
Noninterest-bearing    1,849,404     1,795,810     1,874,520     1,824,411     1,619,162 
Deposits
Total Deposits          6,622,801       6,732,567       6,621,571       6,752,986       6,819,010
                                                                                      
Short-term              300,688         293,034         430,754         314,962         254,766
Borrowings
Long-term              573,849       284,954       575,697       284,926       345,366   
Borrowings
Total Borrowings        874,537         577,988         1,006,451       599,888         600,132
                                                                                      
Other Liabilities      47,252        48,568        65,570        74,888        63,484    
Total Liabilities      7,544,590     7,359,123     7,693,592     7,427,762     7,482,626 
                                                                                      
Preferred Equity        ---             ---             ---             ---             ---
Common Equity          1,029,748     1,000,448     1,041,732     992,251       968,844   
Total Shareholders'    1,029,748     1,000,448     1,041,732     992,251       968,844   
Equity
                                                                                      
Total Liabilities &   $ 8,574,338    $ 8,359,571    $ 8,735,324    $ 8,420,013    $ 8,451,470 
Equity
                                                                                      
MEMO:
Interest-bearing      $ 5,647,934    $ 5,514,745    $ 5,753,502    $ 5,528,463    $ 5,799,980 
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      2013           2012           2013           2013           2013       
Share Data:
                                                                                  
Earnings
Per Share:
Basic         $ 0.39           $ 0.42           $ 0.44           $ 0.44           $ 0.43
Diluted       $ 0.39           $ 0.42           $ 0.44           $ 0.44           $ 0.43
                                                                                  
Common
Dividend      $ 0.32           $ 0.31           $ 0.31           $ 0.31           $ 0.31
Declared
Per Share
                                                                                  
High Common   $ 32.71          $ 25.80          $ 29.45          $ 26.84          $ 27.24
Stock Price
Low Common    $ 28.06          $ 23.02          $ 26.04          $ 24.46          $ 24.80
Stock Price
                                                                                  
Average
Shares
Outstanding
(Net of
Treasury
Stock):
Basic           50,417,452       50,276,137       50,378,613       50,345,733       50,301,875
Diluted         50,564,497       50,294,593       50,472,959       50,402,194       50,331,503
                                                                                  
Memorandum
Items:
                                                                                  
Tax
Applicable    $ 327            $ 92             $ 35             $ 122            $ 49
to Security
Sales/Calls
                                                                                  
Common        $ 16,140         $ 15,587         $ 15,624         $ 15,613         $ 15,605
Dividends
                                                                                  
Dividend
Payout          82.10      %     73.48      %     70.47      %     70.27      %     72.32      %
Ratio
                                                                                  
                               Year Ended
                               December         December         December         December
YTD Share                       2013           2012           2011           2010       
Data:
                                                                                  
Earnings
Per Share:
Basic                          $ 1.70           $ 1.64           $ 1.62           $ 1.65
Diluted                        $ 1.70           $ 1.64           $ 1.61           $ 1.65
                                                                                  
Common
Dividend                       $ 1.25           $ 1.24           $ 1.21           $ 1.20
Declared
Per Share
                                                                                  
Average
Shares
Outstanding
(Net of
Treasury
Stock):
Basic                            50,353,452       50,265,620       46,803,432       43,547,965
Diluted                          50,426,078       50,298,019       46,837,363       43,625,183
                                                                                  
Memorandum
Items:
                                                                                  
Tax
Applicable                     $ 533            $ 156            $ 552            $ 702
to Security
Sales/Calls
                                                                                  
Common                         $ 62,982         $ 62,351         $ 56,827         $ 52,300
Dividends
                                                                                  
Dividend
Payout                           73.55      %     75.48      %     75.16      %     72.69      %
Ratio
                                                                                  
EOP
Employees                        1,528            1,529            1,619            1,451
(full-time
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:     2013           2012           2013           2013         2013       
                                                                                                  
Book Value Per     $ 20.66          $ 19.74          $ 20.19          $ 19.98        $ 19.87
Share
Tangible Book
Value Per Share    $ 13.05          $ 12.06          $ 12.57          $ 12.34        $ 12.22
^(1)
                                                                                                  
52-week High
Common Stock       $ 32.71          $ 30.91          $ 29.45          $ 27.24        $ 29.45
Price
Date                 11/29/13         03/19/12         09/25/13         03/15/13       04/02/12
52-week Low
Common Stock       $ 24.46          $ 22.54          $ 23.02          $ 22.54        $ 22.54
Price
Date                 05/01/13         08/02/12         11/16/12         08/02/12       08/02/12
                                                                                                  
EOP Shares
Outstanding (Net     50,430,267       50,276,573       50,400,944       50,360,373     50,337,922
of Treasury
Stock):
                                                                                                  
Note:
(1) Tangible
Book Value Per
Share:
Total
Shareholders'      $ 1,041,732      $ 992,251        $ 1,017,711      $ 1,006,058    $ 1,000,249
Equity (GAAP)
Less: Total         (383,685   )    (385,690   )    (384,147   )    (384,649   )  (385,156   )
Intangibles
Tangible Equity    $ 658,047        $ 606,561        $ 633,564        $ 621,409      $ 615,093
(non-GAAP)
÷ EOP Shares
Outstanding (Net     50,430,267       50,276,573       50,400,944       50,360,373     50,337,922
of Treasury
Stock)
Tangible Book
Value Per Share    $ 13.05          $ 12.06          $ 12.57          $ 12.34        $ 12.22
(non-GAAP)
                                                                                                  
                   Three Months Ended
                   December         December         September        June           March
                    2013           2012           2013              2013         2013       
Selected Yields
and Net Interest
Margin:
                                                                                                  
Net Loans            4.42       %     4.74%          4.44         %     4.49       %   4.61       %
Investment           2.70       %     2.65%          2.76         %     2.55       %   2.59       %
Securities
Money Market         0.27       %     0.39%          0.26         %     0.27       %   0.23       %
Investments/FFS
Average Earning      4.10       %     4.37%          4.12         %     4.15       %   4.28       %
Assets Yield
Interest-bearing     0.51       %     0.60%          0.54         %     0.57       %   0.58       %
Deposits
Short-term           0.27       %     0.16%          0.27         %     0.21       %   0.26       %
Borrowings
Long-term            1.47       %     3.36%          2.31         %     3.11       %   3.31       %
Borrowings
Average              0.59       %     0.72%          0.64         %     0.67       %   0.70       %
Liability Costs
Net Interest         3.51       %     3.65%          3.48         %     3.48       %   3.58       %
Spread
Net Interest         3.66       %     3.83%          3.65         %     3.65       %   3.75       %
Margin
                                                                                                  
Selected
Financial
Ratios:
                                                                                                  
Return on
Average Common       7.57       %     8.44%          8.64         %     8.81       %   8.72       %
Equity
Return on            0.91       %     1.01%          1.04         %     1.07       %   1.05       %
Average Assets
Efficiency Ratio     52.45      %     52.01%         53.31        %     52.78      %   53.15      %

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
                                   2013       2012       2011       2010
Selected Yields and Net
Interest Margin:
Net Loans                          4.49%      4.90%      5.18%      5.30%
Investment Securities              2.65%      2.98%      3.61%      4.65%
Money Market Investments/FFS       0.26%      0.27%      0.28%      0.31%
Average Earning Assets Yield       4.16%      4.43%      4.68%      4.91%
Interest-bearing Deposits          0.55%      0.64%      0.82%      1.21%
Short-term Borrowings              0.25%      0.11%      0.06%      0.06%
Long-term Borrowings               2.32%      4.45%      4.79%      4.30%
Average Liability Costs            0.65%      0.82%      1.04%      1.53%
Net Interest Spread                3.51%      3.61%      3.64%      3.38%
Net Interest Margin                3.68%      3.81%      3.87%      3.64%
                                                                             
Selected Financial Ratios:
Return on Average Common           8.43%      8.35%      8.50%      9.19%
Equity
Return on Average Assets           1.02%      0.98%      0.97%      0.95%
Loan / Deposit Ratio               101.25%    96.42%     91.37%     92.07%
Allowance for Loan Losses/         1.11%      1.13%      1.19%      1.39%
Loans, Net of Unearned Income
Allowance for Credit Losses
^(1)/ Loans, Net of Unearned       1.14%      1.16%      1.22%      1.43%
Income
Nonaccrual Loans / Loans, Net      0.92%      1.10%      0.96%      1.14%
of Unearned Income
90-Day Past Due Loans/ Loans,      0.16%      0.28%      0.26%      0.13%
Net of Unearned Income
Non-performing Loans/ Loans,       1.21%      1.43%      1.28%      1.28%
Net of Unearned Income
Non-performing Assets/ Total       1.37%      1.69%      1.56%      1.57%
Assets
Primary Capital Ratio              12.69%     12.57%     12.25%     12.00%
Shareholders' Equity Ratio         11.93%     11.78%     11.46%     11.08%
Price / Book Ratio                 1.52     x 1.23     x 1.47     x 1.61     x
Price / Earnings Ratio             18.52    x 14.82    x 17.51    x 17.71    x
Efficiency Ratio                   52.92%     54.08%     51.81%     53.87%
                                                                             
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     2013        2012        2013        2013        2013    
Data:
                                                                         
EOP
Non-Accrual      $ 61,928      $ 71,559      $ 66,081      $ 75,811      $ 73,811
Loans
EOP 90-Day         11,044        18,068        9,697         10,280        8,301
Past Due Loans
EOP
Restructured      8,157       3,175       7,342       7,909       5,309   
Loans ^(2)
Total EOP
Non-performing   $ 81,129      $ 92,802      $ 83,120      $ 94,000      $ 87,421
Loans
                                                                         
EOP Other Real
Estate &          38,182      49,484      42,537      44,416      48,850  
Assets Owned
Total EOP
Non-performing   $ 119,311    $ 142,286    $ 125,657    $ 138,416    $ 136,271 
Assets
                                                                         
                                                                         
                 Three Months Ended          Year Ended
                 December      December      December      December      December
Allowance for
Credit            2013        2012        2013        2012        2011    
Losses:^(1)
Beginning        $ 76,767      $ 75,536      $ 75,557      $ 75,727      $ 75,039
Balance
Provision for
Credit Losses     4,290       5,815       19,754      17,665      16,988  
^ (3)
                   81,057        81,351        95,311        93,392        92,027
Gross              (5,362  )     (6,180  )     (21,006 )     (20,555 )     (19,605 )
Charge-offs
Recoveries        646         386         2,036       2,720       3,305   
Net               (4,716  )    (5,794  )    (18,970 )    (17,835 )    (16,300 )
Charge-offs
Ending Balance   $ 76,341     $ 75,557     $ 76,341     $ 75,557     $ 75,727  
                                                                         
Notes:
(1) Includes allowances for loan losses and lending-related commitments.
(2) Restructured loans with an aggregate balance of $861 at December 31, 2013 and
$375 at March 31, 2013 and December 31, 2012 were on nonaccrual status, but are not
included in the “EOP Non-Accrual Loans.” No restructured loans were on nonaccrual
status at September 30, 2013 and June 30, 2013.
(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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