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