Home		 Press Releases

1st Quarter Report

Dear Shareholder:

United Bankshares reported record first quarter 1999 earnings of $17.2 million or 39¢ per share. This represents a 19% increase over earnings of $14.4 million or 33¢ per share for the first quarter of 1998.

United's key performance ratios were strong for the first quarter of 1999; return on average assets was 1.52% and return on average equity was 16.17%. United's net interest margin of 4.39% for the first quarter of 1999 reflected an increase over both the first and fourth quarters of 1998. United continues to be one of the best performing regional banking companies in the nation.

The annualized first quarter dividend of 20¢ per share equals 80¢ which would represent the twenty-sixth consecutive year of dividend increases for United shareholders.

United's asset quality remains strong with the nonperforming asset level at 0.71% of total assets, the capital ratio also 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.

Analysts are forecasting record earnings for United in 1999.

On behalf of the employees and directors, let me thank you for your continued support.

Sincerely,

Richard M. Adams,
Chairman of the Board and Chief Executive Officer

Consolidated Balance Sheets (Unaudited)

(Dollars in Thousands)

    March 31   December 31
    1999   1998
ASSETS        
Cash and due from banks   $ 107,125   $124,591
Interest-bearing deposits with other banks 6,947   6,807
Federal funds sold       9,900
TOTAL CASH AND      
CASH EQUIVALENTS 114,072   141,298
         
Securities available for sale (at market) 1,013,400   565,165
Investment securities held to maturity 370,576   362,151
Loans held for sale   365,678   720,607
Loans, net of unearned income   2,682,100   2,652,391
Less: Allowance for loan losses   (39,039)   (39,189)
Loans – net   2,643,061   2,613,202
Bank premises and equipment   53,496   54,946
Interest receivable   34,661   30,402
Other assets   81,406   80,128

TOTAL ASSETS

$4,676,350

 

$4,567,899



LIABILITIES        
Domestic deposits        
Noninterest-bearing   $490,687   $542,987
Interest-bearing   2,948,046   2,950,071
TOTAL DEPOSITS 3,438,733   3,493,058
Borrowings        
Federal funds purchased   14,573   7,260
Securities sold under agreements    
to repurchase   264,955   236,535
Federal Home Loan Bank borrowings 457,670   345,867
Other borrowings   3,909   5,244
Accrued expenses and other liabilities 69,184   58,404

TOTAL LIABILITIES

4,249,024

 

4,146,368



SHAREHOLDERS' EQUITY    
Common stock, $2.50 par value;    
authorized – 100,000,000 shares; issued -    
43,310,100 at March 31, 1999 and    
43,256,833 at December 31, 1998,    
including 356 shares in treasury at    
March 31, 1999 and December 31,    
1998, respectively 108,275   108,142
Surplus   88,734   88,353
Retained earnings   228,614   220,111
Accumulated other comprehensive    
Income   1,712   4,934
Treasury stock   (9)   (9)
       
TOTAL SHAREHOLDERS' EQUITY 427,326   421,531
         


TOTAL LIABILITIES AND      
SHAREHOLDERS' EQUITY $4,676,350   $4,567,899


Consolidated Statements of Income (Unaudited)

(Dollars in Thousands Except Per Share Information)

   

Three Months Ended

   

March 31

  March 31
    1999   1998
         
INTEREST INCOME        
Interest and fees on loans   $67,651   $59,925
Interest on federal funds sold and other        
short-term investments   128   465
Interest and dividends on securities:        
Taxable   16,231   15,102
Exempt from federal taxes   1,494   767
         
TOTAL INTEREST INCOME   85,504   76,259
         
INTEREST EXPENSE        
Interest on deposits   31,786   30,697
Interest on short-term borrowings   2,854   2,655
Interest on FHLB borrowings   4,893   2,883
         
TOTAL INTEREST EXPENSE   39,533   36,235
         
NET INTEREST INCOME   45,971   40,024
         
PROVISION FOR LOAN LOSSES   764   2,080
         
NET INTEREST INCOME AFTER        
PROVISION FOR LOAN LOSSES   45,207   37,944


OTHER INCOME        
Income from mortgage banking operations   4,418   5,196
Service charges, commissions, and fees   4,439   4,554
Trust department income   1,358   1,009
Investment securities gains       2,487
Other income   424   766
         
TOTAL OTHER INCOME   10,639   14,012
OTHER EXPENSES        
Salaries and employee benefits   15,006   15,318
Net occupancy expense   2,974   3,915
Other expense   10,841   10,462
         
TOTAL OTHER EXPENSES   28,821   29,695
         
INCOME BEFORE INCOME TAXES   27,025   22,261
         
INCOME TAXES   9,864   7,840
         
NET INCOME   $17,161   $14,421
         
Earnings per common share:        
Basic   $0.40   $0.34
Diluted   $0.39   $0.33
         
Average outstanding shares:        
Basic   43,277,765   42,397,282
Diluted   43,961,407   43,270,862



Finanacial Summary

(Dollars in Thousands Except Per Share Information)

March 31, 1999
     

Three Months Ended
March 31
For the Period     1999   1998
Net Income     $17,161   $14,421
Basic Per Share   0.40   0.34
Diluted Per Share   0.39   0.33
Cash Dividends   8,658   5,252
Per Share     0.20   0.18
           
Financial Ratios (%)        
Return on average total assets 1.52%   1.45%
Return on average shareholders' equity 16.17%   14.48%
Average equity to average assets 9.43%   10.03%
Risk-based capital ratio   12.97%   13.53%
           
At March 31          
Assets     $4,676,350   $4,172,625
Loans, net of unearned income   2,682,100   2,652,575
Loans held for sale 365,678   297,711
Investments securities   1,383,976   975,244
Earning assets     4,438,701   3,951,069
Deposits   3,438,733   3,214,110
Shareholders' equity   427,326   404,971
Book value per share of common stock 9.87   9.47


Common shares outstanding, net of treasury shares   43,309,744   42,744,774


Market price per share of common stock       $22.88   $25.88



###



United Bank Home Page