United Bankshares, Inc. reported fourth quarter operating earnings of $10.3 million or $0.24 per share. This produced a return on average equity (ROE) of 9.59% and a return on average assets (ROA) of 0.93% for the quarter. For the full year 1998, operating net income was $57.5 million, or $1.32 per share. ROE and ROA were 13.96% and 1.36%, respectively, in the past twelve months.

The year 1998 was one of growth through acquisition for United. Assets increased from $2.7 billion to $4.6 billion. United’s historical results include the pooling acquisitions of George Mason Bankshares, Inc. (George Mason) on April 2, 1998 and Fed One Bancorp, Inc. (Fed One) on October 1, 1998. During 1998, United’s true financial performance was distorted by merger related and one-time charges associated with the George Mason and Fed One acquisitions as well as charges associated with the purchase acquisition of branches in the eastern panhandle of West Virginia. Other charges that impacted United’s 1998 earnings were the fourth quarter mark-to-market accounting adjustment for certain junior lien mortgage loans due to the unanticipated failure of an unrelated financial institution to purchase the loans for securitization and United’s ongoing costs associated with its Year 2000 readiness program. The impact of these merger and one-time charges was a reduction of 45¢ per share in United’s 1998 earnings.

1998 marked the 25th consecutive year of dividend increases to shareholders. The dividend increased 9% from $0.68 to $0.75. Based on year-end market prices for United’s stock, United shareholders experienced an 11% appreciation in their stock value since a year ago. United's asset quality remains sound with the nonperforming asset level at 0.50% of total assets, the capital ratio remains strong at nearly 10% and United is categorized as well capitalized based on the risk-based capital ratio, considerably exceeding the regulatory minimum requirement. These ratios compare very favorably to industry averages and support a strong financial position.

Several significant events occurred during 1998 for United. Through its successful merger and acquisition program, United expanded its presence in several key banking markets including the highly attractive market of northern Virginia and the rapidly growing eastern panhandle of West Virginia as well as gaining its first entrance into Ohio. As a result of the 1998 merger and acquisition activity, United ranks as the 75th largest banking company in the nation based on market capitalization. During the second quarter of 1998 United was added to the S&P 600 and Russell 2000 Indices. United was added to the Banks (Regional) industry group, which made United the only regional bank in Maryland, Kentucky and West Virginia included in the index.

Analysts are forecasting record earnings for United in 1999, and on the basis of operating earnings, United continues to be one of the highest performing regional banking companies in the country.

United Bankshares, with $4.6 billion in assets, is the second largest West Virginia headquartered bank holding company. UBSI with its lead bank, United National Bank, and Virginia subsidiary, United Bank, has 79 full-service offices in West Virginia, Virginia, Maryland, Ohio, and Washington, D.C.

United Bankshares stock is traded on the NASDAQ (National Association of Securities Dealers Quotation System) National Market System under the quotation symbol "UBSI".

This press release contains certain forward-looking statements, including certain plans, expectations, goals and projections, which are subject to numerous assumptions, risks and uncertainties. Actual results could differ materially from those contained in or implied by such statements for a variety of factors including: changes in economic conditions; movements in interest rates; competitive pressures on product pricing and services; success and timing of business strategies; the nature and extent of governmental actions and reforms; and rapidly changing technology and evolving banking industry standards.

UNITED BANKSHARES. INC. AND SUBSIDIARIES FINANCIAL SUMMARY (In Thousands Except for Per Share Data)
	Three Months Ended		Year Ended
EARNINGS SUMMARY	December 31       1998	December 31       1997	December 31       1998	December 31       1997
Interest income, taxable equivalent	$85,871	$76,478	$329,470	$283,665
Interest expense	40,440	35,802	155,354	131,122
Net interest income, taxable equivalent	45,431	40,676	174,116	152,543
Taxable equivalent adjustment	997	850	3,823	3,213
Net interest income	44,434	39,826	170,293	149,330
Provision for loan losses	1,478	987	12,131	3,280
Noninterest income	6,393	6,053	24,775	21,888
Gain on security transactions	(16)	16	2,766	85
Net income (loss) from mortgage banking operations	(4,022)	3,693	14,211	15,095
Noninterest expenses	36,867	28,171	137,989	103,852
Income taxes	2,351	7,058	17,523	27,005
Reported income	6,093	13,372	44,402	52,261
PER COMMON SHARE:
Reported income:
Basic	0.14	0.32	1.04	1.24
Diluted	0.14	0.31	1.02	1.22
Operating Earnings (A):
Basic	0.24	0.32	1.34	1.24
Diluted	0.24	0.31	1.32	1.22
Cash dividends paid	0.20	0.18	0.75	0.68
Book value			9.74	9.35
Closing market price			26.50	23.88
Common shares outstanding:
Actual, net of treasury shares			43,256,477	42,474,084
Basic	43,061,214	42,122,865	42,757,638	42,032,566
Diluted	43,771,277	42,974,299	43,461,222	42,768,461
FINANCIAL RATIOS
Reported income:
Return on average assets	0.55%	1.35%	1.01%	1.42%
Return on average shareholders' equity	5.68%	13.64%	10.77%	13.92%
Average equity to average assets	9.66%	9.90%	9.73%	10.20%
Net interest margin	4.38%	4.08%	4.37%	4.40%
Operating Earnings (A):
Return on average assets	0.95%	1.35%	1.36%	1.42%
Return on average shareholders' equity	9.87%	13.64%	13.96%	13.92%

	December 31       1998	December 31       1997
PERIOD END BALANCES
Assets	4,567,846	4,094,836
Earning Assets	4,317,021	3,865,825
Loans, net of unearned income	3,372,998	2,787,458
Investment securities	927,316	1,005,842
Total deposits	3,465,163	3,185,963
Shareholders' equity	421,531	396,056
(A) Reported results, as adjusted, excluded the impact of merger and one-time charges and related income taxes.