The Board of Directors of George Mason Bankshares, Inc. (NASDAQ: GMBS) today reported 1997 net income of $8.08 million compared to $6.88 million for 1996, representing an increase of 17.4% and marking the Company's sixth consecutive year of record earnings. Basic earnings per share for 1997 were $1.58 compared to $1.38 for 1996, an increase of 14.5%. Diluted earnings per share increased to $1.54 for 1997 from $1.35 in 1996, representing a 14.1% increase. Net income for the fourth quarter of 1997 totaled $2.15 million compared to $2.03 million for the same period last year, representing an increase of 5.6%. Basic earnings per share and diluted earnings per share for the fourth quarter of 1997 were $0.41 and $0.40, respectively, compared to $0.40 and $0.40 for 1996.

The improvement in net income for 1997 was primarily attributable to increases in net interest income and noninterest income. The increase in noninterest income was led by a substantial increase in gains on sales of mortgage loans, a result of the activities of George Mason Mortgage Corporation. The improvements in revenues were partially offset by an increase in noninterest expenses, which included $368 thousand in nonrecurring merger expenses.

Total assets increased to $1.0 billion at December 31, 1997 compared to $872 million at December 31, 1996, an increase of $154 million, or 17.6%. Total deposits were $819 million at year-end compared to $694 million on December 31, 1996. Loans, net of unearned income, increased to $456 million at December 31, 1997 compared to $374 million at December 31, 1996, an increase of 22.1%.

"It was another outstanding year for George Mason, as we reached the $1 billion milestone in assets, recorded our sixth consecutive year of record earnings, and provided a total return to our shareholders of 75%," said Bernard H. Clineburg, President and Chief Executive Officer of the Company. "The continued success of our franchise is a direct result of excellent customer service, competitive products and pricing, and convenient locations throughout the Greater Washington area."

ShareholdersÉ equity at December 31, 1997 totaled $76 million compared to $64 million on December 31, 1996. The Company recently announced a cash dividend of $0.14 per share for the fourth quarter of 1997, marking the Company's 42nd consecutive quarterly dividend. Dividends for 1997 totaled $0.56 per share compared to $0.46 per share for 1996, an increase of 21.7%.

In September 1997, the Company announced the signing of a definitive agreement to merge with United Bankshares, Inc. (NASDAQ: UBSI), a $2.7 billion bank holding company headquartered in Charleston, West Virginia. The merger, which is subject to shareholder and regulatory approval, is expected to close in April 1998.

George Mason Bankshares, Inc. is a one-bank holding company headquartered in Fairfax, Virginia. The Company operates 22 banking offices throughout Northern Virginia, the District of Columbia and Montgomery County, Maryland and seven mortgage lending offices throughout Northern Virginia, Maryland and West Virginia.