<PAGE>
EXHIBIT 99.1
News Release
-------------------------------------------------------------------------------
[LOGO] United Bankshares, Inc.
For Immediate Release Contact: Steven E. Wilson (304) 424-8704
October 19, 2000
United Bankshares, Inc. Announces Record Earnings for
Third Quarter and First Nine Months of 2000
United Bankshares, Inc. (NASDAQ: UBSI), today reported record third quarter
earnings for 2000, which follows record first and second quarter earnings.
Earnings per share for the third quarter increased 7% from 41(cents) in 1999 to
44(cents) in 2000 to reach a record $18.6 million net profit compared to $17.7
million in 1999. Record earnings for the first three quarters of 2000 of $1.29 a
share or $54.7 million grew 8% over the first three quarters of 1999 earnings of
$1.20 per share or $52.7 million. Cash earnings per share were 45(cents) and
$1.33 for the third quarter and first nine months of 2000, respectively.
United's key performance ratios remain strong. Third quarter 2000
annualized returns on average assets and average equity were 1.50% and 18.01%,
respectively. For the first nine months ended September 30, 2000, United
achieved an annualized return on average assets of 1.48% and an annualized
return on average equity of 18.08%. On a cash basis, the annualized return on
average tangible assets was 1.55% and 1.53% for the third quarter and first nine
months of 2000, respectively, while the annualized return on average tangible
equity was 20.59% and 20.75%, respectively for the same time periods in 2000.
These key financial performance ratios are indicative of United's earnings
strength. United continues to be one of the best performing regional banking
companies in the nation.
The third quarter dividend was 21(cents) per share. It is expected that
2000 will represent twenty-seven consecutive years of dividend increases for
United shareholders.
Tax-equivalent interest income increased $4.4 million or 5% in the third
quarter of 2000 and $22.0 million or 8% for the first nine months of 2000 when
compared to the same periods of 1999. Tax-equivalent net interest income
remained relatively flat for the third quarter of 2000 and first nine months of
2000 when compared to the same periods of 1999 as increased deposit and funding
costs resulting from six Federal Funds rate increases since mid 1999 have offset
the
[LOGO] UNITED
BANKSHARES, INC.
THE CHALLENGES TO BE THE BEST NEVER ENDS
<PAGE>
United Bankshares, Inc. Announces...
October 19, 2000
Page Two
growth in interest income. United's tax-equivalent net interest margin was 4.04%
and 4.13% for the third quarter and first nine months of 2000, respectively,
compared to 3.99% and 4.16% for the same time periods in 1999. The increase in
the margin percentage for the quarter-to-quarter comparison reflected a changing
earning asset mix from investment securities to higher yielding loans.
United's asset quality remained stable for the quarter and has improved
significantly since year end. Nonperforming loans were $16.7 million at
September 30, 2000 as compared to $17.1 million at June 30, 2000 and $20.7
million at December 31, 1999. Nonperforming loans represented 0.34% of total
assets at the end of the first nine months of 2000, as compared to 0.41% for
United at year end 1999. Loans past due 90 days or more and nonaccrual loans
decreased $1.7 million and $2.3 million, respectively during the first nine
months of 2000. Total nonperforming assets of $18.2 million, including OREO of
$1.5 million, represented 0.37% of total assets at September 30, 2000 as
compared to 0.49% at December 31, 1999.
For the quarters ended September 30, 2000 and 1999, the provision for loan
losses was $4.4 million and $2.3 million, respectively, while the provision for
the first nine months was $10.8 million for 2000 as compared to $4.8 million for
1999. Total net charge-offs were $4.3 million in the third quarter of 2000 and
$3.0 million during the same time period in 1999. Net charge-offs were $11.0
million for the first nine months of 2000 as compared to net charge-offs of $4.3
million for the first nine months of 1999. The increases in provision and net
charge-offs were primarily attributed to the addition to the loan portfolio as
of October 1, 1999 of approximately $230 million of junior-lien mortgage loans
previously classified as securities held for sale. Such increased provision and
charge-offs were offset by increased interest income recognized on the reclassed
loans. At September 30, 2000, the balance of these junior-lien mortgage loans
approximated $185 million. As of September 30, 2000, the allowance for loan
losses was $39.4 million or 1.25% of net loans.
Noninterest income increased 4% for the third quarter of 2000 when compared
to the third quarter of 1999 while remaining relatively flat in the year-to-year
comparison. These results were achieved despite the depressed mortgage lending
business caused by rising interest rates and a slowing economy. Mortgage loan
origination activity fell 19% or $187.0 million for the first nine months of
2000 as compared to the same period in 1999. Fewer originations resulted in a
decline of loan sales in the secondary market of 32% or $371.2 million during
the first nine months of 2000 in comparison to the same time period in 1999.
Excluding income from mortgage banking operations and gains on the sale of
investment securities, noninterest income increased 11% and 16% for the third
quarter and first nine months of 2000, respectively over last years' results
primarily due to a combination of increased revenues from the trust department
and the deposit services area. Trust fees increased 26% and 30% in the third
quarter and first nine
<PAGE>
United Bankshares, Inc. Announces...
October 19, 2000
Page Three
months of 2000, respectively, compared to the prior year's third quarter and
year-to-date results. Deposit charges increased 6% for the quarter compared to
the prior year's third quarter and rose 13% in the year-to-year comparison.
Noninterest expense decreased $3.9 million or 13% and $6.6 million or 8%
for the quarter and nine months ended September 30, 2000, as compared to the
same periods in 1999. Total salaries and benefits decreased by 18% or $2.8
million and 12% or $5.5 million for the third quarter and first nine months of
2000, respectively when compared to the same periods of 1999. The decline was
due mainly to lower sales activity in the mortgage banking segment as
compensation and incentives for its personnel are significantly tied to activity
levels. The efficiency ratio was a low 41.37% and 43.41% for the third quarter
and first nine months of 2000, respectively. This ratio compares very favorably
to regional and national peer group banking companies.
Total assets have declined $118.7 million or 2% since year end as United
continues to restructure its balance sheet. Total loans, including loans held
for sale, have remained relatively flat growing only $74.1 million or 2%. Total
deposits have also remained relatively stable, increasing $52.2 million or 2%
since year end. United's total borrowed funds have decreased $181.0 million or
13% for the year. United repaid these borrowings to restructure the balance
sheet to better manage interest rate risk. Shareholders' equity was $421.6
million resulting in a book value per share of $10.08. United is categorized as
well capitalized based on the risk-based capital ratio, considerably exceeding
the regulatory minimum requirement. All these measures provide evidence that
United's financial position is strong.
United Bankshares, with $5 billion in assets, has 77 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.
