-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WqsiCWQSWwNnzMeJkSnE1RDN23rSg3xqKHf8GtOKjRqfutMGqdtGBFKmGWNEyWGi L51Fk7zDGhlwBogchw+3EQ== 0001157523-03-003042.txt : 20030718 0001157523-03-003042.hdr.sgml : 20030718 20030718080029 ACCESSION NUMBER: 0001157523-03-003042 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030718 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030718 FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNITED BANKSHARES INC/WV CENTRAL INDEX KEY: 0000729986 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 550641179 STATE OF INCORPORATION: WV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 002-86947 FILM NUMBER: 03792183 BUSINESS ADDRESS: STREET 1: 300 UNITED CTR STREET 2: 500 VIRGINIA ST E CITY: CHARLESTON STATE: WV ZIP: 25301 BUSINESS PHONE: 3044248800 MAIL ADDRESS: STREET 1: 300 UNITED CT STREET 2: 500 VIRGINIA ST E CITY: CHARLESTON STATE: WV ZIP: 25301 8-K 1 a4436262.txt UNITED BANKSHARES 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------------------------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): July 18, 2003 ------------- United Bankshares, Inc. ----------------------- (Exact name of registrant as specified in its charter) West Virginia No. 0-13322 55-0641179 - ------------------------------- ----------------------- ------------------ (State or other jurisdiction of (Commission File Number) (I.R.S. Employer incorporation or organization) Identification No.) 300 United Center 500 Virginia Street, East Charleston, West Virginia 25301 ------------------------------- (Address of Principal Executive Offices) (304) 424-8800 -------------- (Registrant's telephone number, including area code) Not Applicable -------------- (Former name or address, if changed since last report) Item 7. Financial Statements and Exhibits - ------------------------------------------ (c) Exhibits 99.1 Press Release, dated July 18, 2003, issued by United Bankshares, Inc. 99.2 Unaudited Supplemental Financial Information Item 9. Regulation FD Disclosure - --------------------------------- On July 18, 2003 United Bankshares, Inc. ("United") announced its earnings for the second quarter and first half of 2003. A copy of the press release is attached as Exhibit 99.1 to this report. Additionally, United provided supplemental financial information for analysts and other interested investors which is attached as Exhibit 99.2 to this report. This information is being provided pursuant to Item 12, Results of Operations and Financial Condition, in accordance with the guidance provided in SEC Release Nos. 33-8216 and 34-47583. SIGNATURES ---------- Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. UNITED BANKSHARES, INC. Date: July 18, 2003 By: /s/ Steven E. Wilson ------------------------ ------------------------------ Steven E. Wilson, Executive Vice President, Treasurer, Secretary and Chief Financial Officer EX-99 3 a4436262ex991.txt EXHIBIT 99.1 Exhibit 99.1 United Bankshares, Inc. Announces Earnings Growth for the Second Quarter and First Half of 2003 PARKERSBURG, W.Va--(BUSINESS WIRE)--July 18, 2003--United Bankshares, Inc. (NASDAQ: UBSI), today reported an increase in earnings for the second quarter and the first half of 2003. Diluted earnings per share were 54(cents) for the second quarter of 2003, up 6% from diluted earnings per share of 51(cents) for the second quarter of 2002. Second quarter net income was $22.8 million compared to $22.2 million for the second quarter of 2002. Diluted earnings per share were $1.07 for the first half of 2003, which also represented a 6% increase from diluted earnings per share of $1.01 for the first half of 2002. Net income for the first six months of 2003 totaled $45.3 million compared to $44.0 million for the prior year's first six months. Second quarter of 2003 results produced a return on average assets of 1.63% and a return on average equity of 16.67%, as compared to 1.62% and 17.02%, respectively, for the second quarter of 2002. For the first half of 2003, United's return on average assets was 1.62% while the return on average equity was 16.67% as compared to 1.62% and 17.10%, respectively, for the first half of 2002. These financial performance ratios are indicative of United's earnings strength as United continues to compare favorably to peer group banking companies. Increased noninterest income continued to be the leading contributor to the earnings growth for the second quarter and first half of 2003 from last year's results. Noninterest income, excluding security transactions, for the second quarter and first half of 2003 increased $9.3 million or 53% and $15.8 million or 47%, respectively, from the second quarter and first half of 2002. These increases were driven primarily by increased mortgage banking production as further discussed below. Also contributing to the rise in noninterest income were fees from deposit services, which increased $1.1 million and $2.1 million or 14% for the second quarter and first six months of 2003, respectively, as compared to the same periods in 2002. On a linked-quarter basis, noninterest income, excluding security transactions, increased $4.1 million or 18% due to increases in income from mortgage banking operations, deposit services and bank-owned life insurance policies. Income from mortgage banking operations for the second quarter of 2003 increased $7.1 million or 100% from the second quarter of 2002 as historically low interest rates favorably impacted mortgage refinancing and home purchasing. Mortgage loans sold in the secondary market during the second quarter of 2003 increased $714.6 million or 135% from the second quarter of 2002, while loan originations increased $725.0 million or 123% when compared to the second quarter of 2002. For the first six months of 2003, mortgage loans sold in the secondary market increased $1.2 billion or 100%, while loan originations also increased $1.2 billion or 112% from the first six months of 2002. As a result of this increased mortgage loan activity, income from mortgage banking operations for the first half of 2003 increased $12.6 million or 93% from the first half of 2002. On a linked-quarter basis, income from mortgage banking operations increased $2.3 million or 19%. Mortgage loans sold in the secondary market during the second quarter of 2003 increased $121.1 million or 11%, while loans originated for sale increased $293.3 million or 29% from the first quarter of 2003. United anticipates that this trend should continue through 2003. United realized a net gain of $931 thousand and $1.8 million from security transactions in the second quarter and first half of 2003 as compared to net losses of $289 thousand and $593 thousand in the second quarter and first half of 2002 related to an other-than-temporary decline in the fair value of retained interests in securitized assets. Included in the security transactions' totals for the first half of 2003 is a recognized impairment charge of $35 thousand as compared to recognized impairment charges of $780 thousand for the first half of 2002. No impairment charge related to securities was recorded in the second quarter of 2003 as compared to a recognized impairment charge of $455 thousand for the second quarter of 2002. On a linked-quarter basis, United recognized an impairment charge of $35 thousand in the first quarter of 2003. The decline in the value of these available for sale securities was the result of an increase in the level of prepayment and default activity during the time periods, which negatively affected the valuation of those securities to varying degrees during the respective periods. Noninterest expense increased $5.8 million and $11.3 million or 17% for the second quarter and first half of 2003, respectively, as compared to the prior year's second quarter and first six months. On a linked-quarter basis, noninterest expense for the second quarter of 2003 increased $3.0 million or 8% from the first quarter of 2003. These increases in noninterest expense were primarily due to increased employee commissions expense as a result of additional loan origination volume at the mortgage banking operations as compensation is tied to loan production levels. United's efficiency ratio has been increasing over the last few quarters from traditionally low levels mainly as a result of a compressing net interest margin. However, during the most recent quarter, the efficiency ratio increased due to the increased expenses of the mortgage banking operations as a result of the higher loan production levels. The efficiency ratio of 52.2% and 51.4% for the second quarter and first half of 2003, respectively, still compares favorably to peer group banking companies. The combination of historically low interest rates, global uncertainties and a weak domestic economy continue to pressure the net interest margin of most financial institutions. However, on a linked-quarter basis, United's tax-equivalent net interest income for the second quarter of 2003 was relatively stable at $50.2 million while the net interest margin was 3.83%, an increase of 7 basis points from 3.76% in the first quarter of 2003. Compared to last year's results, United's tax-equivalent net interest income for the second quarter of 2003 decreased by $4.0 million or 7% from the second quarter of 2002. The net interest margin of 3.83% for the second quarter of 2003 was a 39 basis points decline from the second quarter of 2002's net interest margin of 4.22%. Tax-equivalent net interest income for the first six months of 2003 was $100.3 million, a decrease of $7.3 million or 7% from the prior year's first six months. The net interest margin for the first half of 2003 was 3.79% as compared to a net interest margin of 4.19% during the same period last year. Credit quality continues to compare favorably against peer group averages, despite sluggish economic conditions. At June 30, 2003, nonperforming loans were $13.4 million or 0.38% of loans, net of unearned income compared to $15.4 million or 0.43% of loans, net of unearned income at December 31, 2002. For the quarter, nonperforming loans declined $3.2 million or 19% from the totals at March 31, 2003. Net charge-offs were $2.4 million for the second quarter of 2003, an increase from $1.8 million for the second quarter of 2002. Net charge-offs for the first half of 2003 were $4.3 million, as compared to $3.6 million for the first half of 2002. For the quarters ended June 30, 2003 and 2002, the provision for loan losses was $2.3 million and $1.7 million, respectively, while the provision for the first six months was $3.8 million for 2003 as compared to $3.9 million for 2002. As of June 30, 2003, the allowance for loan losses was $46.8 million or 1.33% of loans, net of unearned income, which was the same percentage at December 31, 2002. During the quarter, United's Board of Directors declared a cash dividend of 25(cents) per share, a 9% increase over the 23(cents) per share declared in the second quarter of 2002. The annualized first half dividend of 50(cents) per share equals $1.00, which would represent the 30th consecutive year of dividend increases for United shareholders. In addition, the Board of Directors approved a new plan to repurchase up to 1.65 million shares of United's common stock on the open market effective upon completion of the 2002 repurchase plan. Treasury stock acquired under the stock repurchase plan represents approximately 4% of the issued and outstanding shares of United. United's recently announced agreement to acquire Sequoia Bancshares, Inc. of Bethesda, Maryland, with assets of approximately $539 million at June 30, 2003, is progressing towards obtaining applicable regulatory and shareholder approvals. The transaction, which is expected to close during the fourth quarter of 2003, will increase United's Virginia franchise to more than $3 billion in assets and United's total franchise to more than $6.4 billion in consolidated assets. United Bankshares, with approximately $5.8 billion in assets, presently has 85 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 evolving banking industry standards. UNITED BANKSHARES, INC. AND SUBSIDIARIES FINANCIAL SUMMARY (In Thousands Except for Per Share Data) Three Months Ended Six Months Ended ------------------- ------------------- June June June June 30 30 30 30 2003 2002 2003 2002 ------------------- ------------------- EARNINGS SUMMARY: Interest income, taxable equivalent $76,717 $87,517 $156,507 $175,558 Interest expense 26,567 33,322 56,162 67,912 Net interest income, taxable equivalent 50,150 54,195 100,345 107,646 Taxable equivalent adjustment 2,456 2,779 5,022 5,582 Net interest income 47,694 51,416 95,323 102,064 Provision for loan losses 2,296 1,675 3,751 3,902 Income from mortgage banking operations 14,267 7,148 26,239 13,598 Gain (loss) on security transactions 931 (289) 1,797 (593) Other noninterest income 12,593 10,411 23,350 20,202 Noninterest expenses 40,610 34,829 78,175 66,859 Income taxes 9,774 9,976 19,435 20,483 Net income 22,805 22,206 45,348 44,027 Cash dividends declared 10,373 9,801 20,799 19,670 PER COMMON SHARE: Net income: Basic 0.55 0.52 1.09 1.03 Diluted 0.54 0.51 1.07 1.01 Cash dividends 0.25 0.23 0.50 0.46 Book value 13.20 12.53 Closing market price 28.63 29.38 Common shares outstanding: Actual at period end, net of treasury shares 41,461,389 42,560,428 Weighted average- basic 41,597,646 42,691,886 41,752,969 42,793,408 Weighted average- diluted 42,067,728 43,391,049 42,220,476 43,466,954 FINANCIAL RATIOS: Return on average assets 1.63% 1.62% 1.62% 1.62% Return on average shareholders' equity 16.67% 17.02% 16.67% 17.10% Average equity to average assets 9.80% 9.54% 9.69% 9.47% Net interest margin 3.83% 4.22% 3.79% 4.19% June 30 June 30 December 31 March 31 2003 2002 2002 2003 -------------------------- ---------------------- PERIOD END BALANCES: Assets 5,753,006 5,625,130 $5,792,019 $5,816,539 Earning assets 5,392,191 5,294,863 5,454,471 5,449,356 Loans, net of unearned income 3,515,307 3,590,305 3,573,161 3,495,781 Loans held for sale 548,767 284,230 582,718 478,706 Investment securities 1,313,804 1,412,112 1,285,490 1,350,286 Total deposits 3,851,967 3,815,311 3,900,848 3,975,954 Shareholders' equity 547,094 533,183 541,539 541,873 EX-99 4 a4436262ex992.txt EXHIBIT 99.2 Exhibit 99.2 UNITED BANKSHARES, INC. AND SUBSIDIARIES Charleston, WV Stock Symbol: UBSI (In Thousands Except for Per Share Data) Consolidated Statements of Income Three Months Ended Six Months Ended ------------------------------------------------------- June June March June June 2003 2002 2003 2003 2002 ------------------------------------------------------- Interest & Loan Fees Income $74,261 $84,738 $77,224 $151,485 $169,976 Tax Equivalent Adjustment 2,456 2,779 2,566 5,022 5,582 ----------- -------- -------- --------- --------- Interest & Fees Income (FTE) 76,717 87,517 79,790 156,507 175,558 Interest Expense 26,567 33,322 29,595 56,162 67,912 ----------- -------- -------- --------- --------- Net Interest Income (FTE) 50,150 54,195 50,195 100,345 107,646 Loan Loss Provision 2,296 1,675 1,455 3,751 3,902 Non-Interest Income: Inv. Securities Transactions 931 (289) 866 1,797 (593) Income from Fiduciary Activities 2,462 2,115 2,275 4,737 4,389 Service Charges on Deposits 8,943 7,833 8,121 17,064 14,988 Income from Mortgage Banking Operations 14,267 7,148 11,972 26,239 13,598 Other Non-Interest Revenue 1,188 463 361 1,549 825 ----------- -------- -------- --------- --------- Total Non- Interest Income 27,791 17,270 23,595 51,386 33,207 ----------- -------- -------- --------- --------- Non-Interest Expense: Staff Expense 24,189 19,158 21,631 45,820 36,772 Occupancy & Equipment Expense 3,264 3,421 3,316 6,580 6,060 Other Expenses 12,462 11,667 11,647 24,109 22,493 Amortization of Intangibles 424 249 434 858 834 OREO Expense (8) 168 248 240 333 FDIC Expense 279 166 289 568 367 ----------- -------- -------- --------- --------- Total Non- Interest Expense 40,610 34,829 37,565 78,175 66,859 ----------- -------- -------- --------- --------- Pre-Tax Earnings (FTE) 35,035 34,961 34,770 69,805 70,092 Tax Equivalent Adjustment 2,456 2,779 2,566 5,022 5,582 ----------- -------- -------- --------- --------- Reported Pre-Tax Earnings 32,579 32,182 32,204 64,783 64,510 Taxes 9,774 9,976 9,661 19,435 20,483 ----------- -------- -------- --------- --------- Net Income $22,805 $22,206 $22,543 $45,348 $44,027 =========== ======== ======== ========= ========= MEMO: Effective Tax Rate 30.00% 31.00% 30.00% 30.00% 31.75% UNITED BANKSHARES, INC. AND SUBSIDIARIES Charleston, WV Stock Symbol: UBSI (In Thousands Except for Per Share Data) Consolidated Balance Sheets June 30 June 30 2003 2002 Q-T-D Q-T-D June 30 Average Average 2003 ----------- ----------- ----------- Cash & Cash Equivalents $181,817 $141,466 $176,815 Securities Available for Sale 1,059,398 1,209,025 1,055,532 Held to Maturity Securities 260,481 227,577 258,272 ----------------------- ----------- ----------- Total Securities 1,319,879 1,436,602 1,313,804 ----------------------- ----------- ----------- Total Cash and Securities 1,501,696 1,578,068 1,490,619 ----------------------- ----------- ----------- Loans held for sale 437,935 201,183 548,767 Commercial Loans 1,830,901 1,897,275 1,851,345 Mortgage Loans 1,306,109 1,276,535 1,306,502 Consumer Loans 348,942 354,221 357,460 ----------------------- ----------- ----------- Loans, net of unearned income 3,485,952 3,528,031 3,515,307 Allowance for Loan Losses (46,591) (47,920) (46,844) Goodwill 89,600 91,752 89,596 Other Intangibles 5,252 7,074 5,012 ----------------------- ----------- ----------- Total Intangibles 94,852 98,826 94,608 Other Real Estate Owned 4,176 3,967 3,834 Other Assets 124,848 121,374 146,715 ----------------------- ----------- ----------- Total Assets $5,602,868 $5,483,529 $5,753,006 ======================= =========== =========== MEMO: Earning Assets $5,245,649 $5,143,965 $5,392,191 ======================= =========== =========== Interest-bearing Deposits $3,056,808 $3,133,439 $2,992,378 Noninterest-bearing Deposits 727,948 585,572 859,589 ----------------------- ----------- ----------- Total Deposits 3,784,756 3,719,011 3,851,967 Short-term Borrowings 502,444 477,185 534,470 Long-term Borrowings 715,815 689,795 757,938 ----------------------- ----------- ----------- Total Borrowings 1,218,259 1,166,980 1,292,408 Other Liabilities 51,001 74,348 61,537 ----------------------- ----------- ----------- Total Liabilities 5,054,016 4,960,339 5,205,912 ----------------------- ----------- ----------- Common Equity 548,852 523,190 547,094 ----------------------- ----------- ----------- Total Shareholders' Equity 548,852 523,190 547,094 ----------------------- ----------- ----------- Total Liabilities & Equity $5,602,868 $5,483,529 $5,753,006 ======================= =========== =========== UNITED BANKSHARES, INC. AND SUBSIDIARIES Charleston, WV Stock Symbol: UBSI (In Thousands Except for Per Share Data) Consolidated Balance Sheets December 31 June 30 2002 2002 ------------ ---------- Cash & Cash Equivalents $175,363 $160,025 Securities Available for Sale 1,022,314 1,138,842 Held to Maturity Securities 263,176 273,270 ------------------------------------ ----------- Total Securities 1,285,490 1,412,112 ------------------------------------ ----------- Total Cash and Securities 1,460,853 1,572,137 ------------------------------------ ----------- Loans held for sale 582,718 284,230 Commercial Loans 1,885,275 1,943,177 Mortgage Loans 1,335,606 1,283,580 Consumer Loans 352,280 363,548 ------------------------------------ ----------- Loans, net of unearned income 3,573,161 3,590,305 Allowance for Loan Losses (47,387) (47,746) Goodwill 90,416 91,925 Other Intangibles 5,869 6,771 ------------------------------------ ----------- Total Intangibles 96,285 98,696 Other Real Estate Owned 4,267 4,116 Other Assets 122,122 123,392 ------------------------------------ ----------- Total Assets $5,792,019 $5,625,130 ==================================== =========== MEMO: Earning Assets $5,454,471 $5,294,863 ==================================== =========== Interest-bearing Deposits $3,161,620 $3,128,082 Noninterest-bearing Deposits 739,228 687,229 ------------------------------------ ----------- Total Deposits 3,900,848 3,815,311 Short-term Borrowings 573,549 526,268 Long-term Borrowings 708,573 689,514 ------------------------------------ ----------- Total Borrowings 1,282,122 1,215,782 Other Liabilities 67,510 60,854 ------------------------------------ ----------- Total Liabilities 5,250,480 5,091,947 ------------------------------------ ----------- Common Equity 541,539 533,183 ------------------------------------ ----------- Total Shareholders' Equity 541,539 533,183 ------------------------------------ ----------- Total Liabilities & Equity $5,792,019 $5,625,130 ==================================== =========== UNITED BANKSHARES, INC. AND SUBSIDIARIES Charleston, WV Stock Symbol: UBSI (In Thousands Except for Per Share Data) ----------------------------------- Three Months Ended ----------------------------------- June June March Quarterly/Year-to-Date Share Data: 2003 2002 2003 ----------- ----------- ----------- Earnings Per Share: Basic $0.55 $0.52 $0.54 Diluted $0.54 $0.51 $0.53 Common Dividend Declared Per Share $0.25 $0.23 $0.25 High Common Stock Price $30.93 $32.25 $30.51 Low Common Stock Price $27.40 $27.18 $26.58 Average Shares Outstanding: (Net of Treasury Stock): Basic 41,597,646 42,691,886 41,891,007 Diluted 42,067,728 43,391,049 42,355,229 Memorandum Items: Tax Applicable to Security Transactions $326 ($101) $303 Common Dividends $10,373 $9,801 $10,426 ----------------------------------- Six Months Ended ----------------------------------- June June Quarterly/Year-to-Date Share Data: 2003 2002 ----------------------- ----------- Earnings Per Share: Basic $1.09 $1.03 Diluted $1.07 $1.01 Common Dividend Declared Per Share $0.50 $0.46 High Common Stock Price $30.93 $32.25 Low Common Stock Price $26.58 $27.18 Average Shares Outstanding: (Net of Treasury Stock): Basic 41,752,969 42,793,408 Diluted 42,220,476 43,466,954 Memorandum Items: Tax Applicable to Security Transactions $629 ($208) Common Dividends $20,799 $19,670 June June March EOP Share Data: 2003 2002 2003 ----------- ----------- ----------- Book Value Per Share $13.20 $12.53 $12.98 Tangible Book Value Per Share $10.91 $10.21 $10.70 52-week High Common Stock Price $31.65 $32.25 $32.25 Date 08/20/02 05/06/02 05/06/02 52-week Low Common Stock Price $24.88 $23.20 $24.88 Date 07/24/02 09/21/01 07/24/02 EOP Shares Outstanding (Net of Treasury Stock): 41,461,389 42,560,428 41,744,719 Memorandum Items: EOP Employees (full-time equivalent) 1,509 1,399 1,500 UNITED BANKSHARES, INC. AND SUBSIDIARIES Charleston, WV Stock Symbol: UBSI (In Thousands Except for Per Share Data) Three Months Ended Six Months Ended --------------------- -------------------- June June March June June 2003 2002 2003 2003 2002 ------- ------- ------- ------- ------- Selected Yields and Net Interest Margin: Loans 6.26% 7.14% 6.39% 6.33% 7.21% Investment Securities 4.85% 6.09% 5.30% 5.11% 6.20% Money Market Investments/FFS 1.78% 1.27% 1.16% 1.32% 1.66% Average Earning Assets Yield 5.86% 6.81% 6.00% 5.93% 6.86% Interest-bearing Deposits 1.77% 2.60% 2.12% 1.95% 2.70% Short-term Borrowings 1.67% 2.02% 1.69% 1.68% 2.03% Long-term Borrowings 6.15% 6.19% 6.19% 6.17% 6.16% Average Liability Costs 2.49% 3.11% 2.72% 2.61% 3.18% Net Interest Spread 3.37% 3.71% 3.28% 3.32% 3.68% Net Interest Margin 3.83% 4.22% 3.76% 3.79% 4.19% Selected Financial Ratios: Return on Average Common Equity 16.67% 17.02% 16.67% 16.67% 17.10% Return on Average Assets 1.63% 1.62% 1.60% 1.62% 1.62% Efficiency Ratio 52.19% 47.96% 50.58% 51.41% 46.44% June June March 2003 2002 2003 -------- -------- -------- Loan / Deposit Ratio 91.26% 94.10% 87.92% Allowance for Loan Losses / Loans, net of unearned income 1.33% 1.33% 1.34% Nonaccrual Loans / Loans, net of unearned income 0.22% 0.21% 0.29% 90-Day Past Due Loans/ Loans, net of unearned income 0.17% 0.21% 0.19% Non-performing Loans/ Loans, net of unearned income 0.38% 0.42% 0.47% Non-performing Assets/ Total Assets 0.30% 0.52% 0.36% Primary Capital Ratio 10.24% 10.24% 10.04% Shareholders' Equity Ratio 9.51% 9.48% 9.32% Price / Book Ratio 2.17x 2.35x 2.13x Price / Earnings Ratio 13.33x 14.50x 13.01x June June December March Credit Quality 2003 2002 2002 2003 Data: --------------- -------- -------- -------- EOP Non-Accrual Loans $7,595 $7,384 $6,890 $9,979 EOP 90-Day Past Due Loans 5,817 7,604 8,461 6,594 --------------- -------- -------- -------- Total EOP Non- performing Loans $13,412 $14,988 $15,351 $16,573 EOP Non-performing Securities 0 10,000 0 0 EOP Other Real Estate & Assets Owned 3,834 4,116 4,267 4,086 --------------- -------- -------- -------- Total EOP Non- performing Assets $17,246 $29,104 $19,618 $20,659 =============== ======== ======== ======== Three Months Ended Year to Date --------------------------------- ----------------- June June March June June Charge-off 2003 2002 2003 2003 2002 Analysis: --------------- -------- -------- -------- -------- Gross Charge-offs ($2,737) ($2,187) ($2,256) ($4,993) ($4,590) Recoveries 300 369 399 699 1,026 --------------- -------- -------- -------- -------- Net Charge-offs ($2,437) ($1,818) ($1,857) ($4,294) ($3,564) =============== ======== ======== ======== ======== CONTACT: United Bankshares, Inc. Steven E. Wilson, 304-424-8704 -----END PRIVACY-ENHANCED MESSAGE-----