EX-99.1 2 j1350401exv99w1.htm EXHIBIT 99.1 EX-99.1
 

EXHIBIT 99.1
News Release

     
 

(UNITED BANKSHARES, INC. LOGO)

For Immediate Release
April 25, 2005 		  Contact: Steven E. Wilson
Chief Financial Officer
(304) 424-8704

United Bankshares, Inc. Announces
Increased Earnings for the First Quarter of 2005

     WASHINGTON, DC and CHARLESTON, WV— United Bankshares, Inc. (NASDAQ: UBSI), today reported diluted earnings per share of 57¢ for the first quarter of 2005, which represented an 8% increase from diluted earnings per share of 53¢ for first quarter of 2004. United generated net income of $24.8 million for the first quarter of 2005, an increase of 5% from the $23.5 million earned in the first quarter of 2004.

     First quarter of 2005 results produced an annualized return on average assets of 1.58% and an annualized return on average equity of 15.71%, as compared to 1.52% and 15.19%, respectively, for the first quarter of 2004. United’s returns compare favorably to its most recently reported peer group banking companies’ average return on assets of 1.29% and average return on equity of 14.11%.

     Earnings per diluted share from continuing operations was 57¢ for the first quarter of 2005, a 12% increase from earnings per diluted share from continuing operations of 51¢ for the first quarter of 2004. Income from continuing operations was $24.8 million for the first quarter of 2005 as compared to income from continuing operations of $22.6 million for the first quarter of 2004. No income from discontinued operations was recorded for the first quarter of 2005 because the sale of George Mason Mortgage, LLC occurred in 2004. Income from discontinued operations for the first quarter of 2004 was $897 thousand or 2¢ per diluted share.

     The earnings growth for the first quarter of 2005 from last year’s first quarter was primarily due to increased net interest income. Tax-equivalent net interest income from continuing operations for the first quarter of 2005 was $55.8 million, an increase of $3.5 million or 7% from the first quarter of 2004. This increase in tax-equivalent net interest income from continuing operations was due mainly to a $399.3 million or 7% increase in average earning assets as average loans for the first quarter of 2005 grew $394.6 million or 10% over last year’s first quarter. In addition, the average yield on earning assets for the first quarter of 2005 increased 25 basis points from the first quarter of 2004 as a result of higher interest rates. Partially offsetting these increases to net interest income for the first quarter of 2005 was a 35 basis point increase in the cost of funds from the first quarter of 2004 due to the higher interest rates. On a linked-quarter basis, United’s tax-equivalent net interest income from continuing operations for the first quarter of 2005 was relatively flat compared to the fourth quarter of 2004 as growth in average loans of $97.2 million or 2% for the quarter was offset by an increase of 19 basis points in the cost of funds. On a consolidated basis, which combines the results from continuing and discontinued operations, the net interest margin for the first quarter of 2005 of 3.85% was a decrease of 1 basis point from the consolidated net interest margin of 3.86% for the first and fourth quarters of 2004.

 

 

United Bankshares, Inc. Announces...
April 25, 2005
Page Two

     Noninterest income from continuing operations for the first quarter of 2005 was $12.9 million, which was a decrease of $644 thousand or 5% from the first quarter of 2004 due mainly to a decline in fees from deposit services of $906 thousand or 12%. Revenue from trust and brokerage services grew $188 thousand or 7% for the first quarter of 2005 over last year’s first quarter revenue. On a linked-quarter basis, noninterest income from continuing operations decreased $184 thousand or 1% from the fourth quarter of 2004 again due mainly to decreased revenue from deposit services. Income from trust and brokerage services showed a healthy growth of $310 thousand or 13% for the first quarter of 2005 over the fourth quarter of 2004.

     Noninterest expense from continuing operations decreased $883 thousand or 3% for the first quarter of 2005 as compared to the first quarter of 2004 due to decreases in several general operating expenses, none of which were individually significant. Salaries and employee benefits expense for the first quarter of 2005 was relatively flat from last year’s first quarter expense. On a linked-quarter basis, noninterest expense decreased $3.0 million or 9% which was due mainly to a penalty of $3.0 million to refinance a Federal Home Loan Bank (FHLB) advance during the fourth quarter of 2004.

     United’s credit quality continues to be sound. At March 31, 2005, nonperforming loans were $9.5 million or 0.22% of loans, net of unearned income compared to $10.8 million or 0.24% of loans, net of unearned income at December 31, 2004. Net charge-offs were $1.0 million for the first quarter of 2005 as compared to $1.3 million for the first quarter of 2004. For the quarters ended March 31, 2005 and 2004, the provision for credit losses was $1.1 million and $1.4 million, respectively. As of March 31, 2005, the allowances for loan losses and lending-related commitments totaled $51.4 million or 1.17% of loans, net of unearned income, as compared to $51.4 million or 1.16% of loans, net of unearned income at December 31, 2004.

     During the first quarter, United’s Board of Directors declared a cash dividend of 26¢ per share. The 2005 annualized first quarter dividend of 26¢ per share equals $1.04, which would represent the 32nd consecutive year of dividend increases for United shareholders.

     United Bankshares, with $6.3 billion in assets, presently has 90 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) Stock 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  
    March 31     March 31     December 31  
    2005     2004     2004  
EARNINGS SUMMARY:
                        
Interest income, taxable equivalent
   $ 82,041     $ 73,666     $ 80,163  
Interest expense
     26,286       21,400       24,175  
Net interest income, taxable equivalent
     55,755       52,266       55,988  
Taxable equivalent adjustment
     2,765       2,515       2,717  
Net interest income
     52,990       49,751       53,271  
Provision for credit losses
     1,111       1,357       1,328  
Noninterest income
     12,919       13,563       13,103  
Noninterest expenses
     28,741       29,624       31,712  
Income taxes related to continuing operations
     11,297       9,726       7,834  
Income from continuing operations
     24,760       22,607       25,500  
Income from discontinued operations before income taxes
     —       1,243       —  
Income taxes related to discontinued operations
     —       346       —  
Income from discontinued operations
     —       897       —  
Net income
   $ 24,760     $ 23,504     $ 25,500  
 
                        
PER COMMON SHARE:
                        
From continuing operations:
                        
Basic
   $ 0.58     $ 0.52     $ 0.59  
Diluted
     0.57       0.51       0.58  
From discontinued operations:
                        
Basic
     —       0.02       —  
Diluted
     —       0.02       —  
Net income:
                        
Basic
     0.58       0.54       0.59  
Diluted
     0.57       0.53       0.58  
Cash dividends
     0.26       0.25       0.26  
Book value
     14.65       14.34       14.68  
Closing market price
   $ 33.14     $ 30.50     $ 38.15  
Common shares outstanding:
                        
Actual at period end, net of treasury shares
     42,790,954       43,627,204       43,008,445  
Weighted average- basic
     42,900,416       43,680,837       43,111,287  
Weighted average- diluted
     43,418,579       44,258,584       43,742,803  
 
                        
FINANCIAL RATIOS:
                        
Return on average assets
     1.58 %     1.52 %     1.60 %
Return on average shareholders’ equity
     15.71 %     15.19 %     15.90 %
Average equity to average assets
     10.05 %     9.98 %     10.09 %
Net interest margin
     3.85 %     3.86 %     3.86 %
                         
    March 31     March 31     December 31  
  2005     2004     2004  
PERIOD END BALANCES:
                        
Assets
   $ 6,311,308     $ 6,441,078     $ 6,435,971  
Earning assets
     5,823,572       5,576,094       5,953,858  
Loans, net of unearned income
     4,391,093       4,085,741       4,418,276  
Loans held for sale
     4,488       765       3,981  
Investment securities
     1,389,152       1,462,356       1,510,442  
Total deposits
     4,350,439       4,057,582       4,297,563  
Shareholders’ equity
     626,683       625,741       631,507