WASHINGTON, DC and CHARLESTON, WV-- United Bankshares, Inc. (NASDAQ: UBSI), today reported diluted earnings per share of 58¢ for the first quarter of 2006, which represented a 2% increase from diluted earnings per share of 57¢ for first quarter of 2005. United generated net income of $24.6 million for the first quarter of 2006 as compared to $24.8 million earned in the first quarter of 2005.

Like most financial institutions, United’s earnings remain under pressure because of a competitive banking market for loans and deposits and a sustained flat yield curve between short-term and long-term interest rates. In order to avoid greater interest rate risk, United’s management believes it is in the best interest of the Company and the shareholders to forego some short-term profits in order to improve long-term results. Accordingly, United recently repositioned its balance sheet by selling $86 million of low-yielding investment securities and using the sale proceeds to repay higher-cost debt. Management believes the repositioning should improve United’s net interest margin and thus earnings in future periods.

To attract new deposits, United introduced its High Performance Checking program during the first quarter of 2006. United believes these lower rate and non-interest earning deposits, mixed with its time deposit products, will lower United overall cost of funds as well as generate increased fee income in future periods. In addition, United believes the relationships created through its High Performance Checking program will allow United the opportunity to provide additional bank products to its customers. In order to promote and launch the High Performance Checking program, United incurred marketing and related costs of approximately $950 thousand during the quarter.

In the net interest margin, the flat yield curve has resulted in a lesser increase in yields on earning assets while the upward trend in the general market interest rates has resulted in a more significant increase to funding costs. United’s tax-equivalent net interest income for the first quarter of 2006 was $58.8 million, an increase of $3.0 million or 5% from the first quarter of 2005. This increase in tax-equivalent net interest income was due mainly to a $286.6 million or 5% increase in average earning assets as average loans for the first quarter of 2006 grew $238.5 million or 5% over last year’s first quarter. In addition, the average yield on earning assets for the first quarter of 2006 increased 88 basis points from the first quarter of 2005 as a result of higher interest rates. In the first quarter of 2006, the net interest margin was aided by additional interest income of approximately $917 thousand from United’s prior asset securitization compared to the first quarter of 2005. Partially offsetting these increases to net interest income for the first quarter of 2006 was a 102 basis point increase in the cost of funds from the first quarter of 2005 due to increased deposit and borrowing costs as a result of the higher interest rates. The net interest margin for the first quarter of 2006 was 3.86%, a one basis point increase from the first quarter 2005 net interest margin of 3.85%.

On a linked-quarter basis, United’s tax-equivalent net interest income for the first quarter of 2006 declined $2.5 million or 4% from the fourth quarter of 2005 due to a 31 basis points increase in the average cost of funds. Additionally, interest income from United’s prior asset securitization decreased $642 thousand from the fourth quarter of 2005. The average yield on earning assets increased 12 basis points which was not enough to offset the increase in the average cost of funds. The net interest margin for the first quarter of 2006 of 3.86% was a decrease of 17 basis points from the consolidated net interest margin of 4.03% for the fourth quarter of 2005.

Noninterest income for the first quarter of 2006 increased $743 thousand or 6% from the first quarter of 2005. As previously mentioned, United repositioned its balance sheet during the first quarter of 2006. As part of the repositioning, United prepaid a $50 million variable interest rate Federal Home Loan Bank (“FHLB”) advance and terminated a fixed interest rate swap associated with the advance. United recognized a $3.1 million gain on the termination of the interest rate swap. Additionally, fees from deposit services in the first quarter of 2006 increased $500 thousand or 8% from the first quarter of 2005 while fees from trust and brokerage services increased $262 thousand or 10% over the same time period. During the first quarter of 2006, United incurred a net loss on security transactions of $2.8 million as compared to a net gain of $924 thousand in the first quarter of 2005. The net loss in the first quarter of 2006 was due primarily to an other than temporary impairment on approximately $86 million of low-yielding fixed rate investment securities which United sold as part of its balance sheet repositioning. On a linked-quarter basis, noninterest income increased $351 thousand or 3% from the fourth quarter of 2005 due mainly to the $3.1 million gain on the aforementioned termination of the interest rate swap which more than offset the $2.6 million increase in net losses on security transactions. Income from trust and brokerage services showed a growth of $249 thousand or 9% for the first quarter of 2006 over the fourth quarter of 2005.

Noninterest expense increased $3.4 million or 12% for the first quarter of 2006 as compared to the first quarter of 2005 due mainly to an increase in salaries and benefits expense of $1.0 million or 7%. Salaries for the first quarter of 2006 increased $636 thousand from the first quarter of 2005 while health insurance and pension costs increased $280 thousand and $160 thousand, respectively, over the same time period. In addition, as previously mentioned, United incurred marketing and related costs of approximately $950 thousand during the quarter to promote and launch its new High Performance Checking program. On a linked-quarter basis, noninterest expense increased $862 thousand or 3% due primarily to the costs associated with the High Performance Checking program.

United’s credit quality continues to be sound. At March 31, 2006, nonperforming loans were $12.9 million or 0.27% of loans, net of unearned income compared to $13.2 million or 0.28% of loans, net of unearned income at December 31, 2005. Net charge-offs were a low $156 thousand for the first quarter of 2006 as compared to $1.0 million for the first quarter of 2005. For the quarters ended March 31, 2006 and 2005, the provision for credit losses was $250 thousand and $1.1 million, respectively. As of March 31, 2006, the allowances for loan losses and lending-related commitments totaled $53.0 million or 1.13% of loans, net of unearned income, as compared to $52.9 million or 1.14% of loans, net of unearned income at December 31, 2005.

During the first quarter, United’s Board of Directors declared a cash dividend of 27¢ per share. The 2006 annualized first quarter dividend of 27¢ per share equals $1.08, which would represent the 33rd consecutive year of dividend increases for United shareholders.

United Bankshares, with $6.7 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   2006 2005 2005 EARNINGS SUMMARY: Interest income, taxable equivalent $ 99,311 $ 82,041 $ 97,866 Interest expense 40,560 26,286 36,612 Net interest income, taxable equivalent 58,751 55,755 61,254 Taxable equivalent adjustment 3,730 2,765 3,533 Net interest income 55,021 52,990 57,721 Provision for credit losses 250 1,111 2,058 Noninterest income 13,662 12,919 13,311 Noninterest expenses 32,188 28,741 31,326 Income taxes 11,635 11,297 11,962 Net income $ 24,610 $ 24,760 $ 25,686   PER COMMON SHARE: Net income:     Basic $ 0.59 $ 0.58 $ 0.61     Diluted 0.58 0.57 0.60 Cash dividends 0.27 0.26 0.27 Book value 15.26 14.65 15.12 Closing market price $ 38.27 $ 33.14 $ 35.24 Common shares outstanding:     Actual at period end, net of treasury shares 41,848,564 42,790,954 42,008,179     Weighted average- basic 41,923,726 42,900,416 42,117,900     Weighted average- diluted 42,379,242 43,418,579 42,638,687   FINANCIAL RATIOS: Return on average assets 1.49% 1.58% 1.54% Return on average shareholders’ equity 15.51% 15.71% 15.76% Average equity to average assets 9.63% 10.05% 9.79% Net interest margin 3.86% 3.85% 4.03%     March 31 March 31 December 31   2006 2005 2005 PERIOD END BALANCES: Assets $ 6,706,832 $ 6,311,308 $ 6,728,492 Earning assets 6,133,062 5,823,572 6,129,969 Loans, net of unearned income 4,693,329 4,391,093 4,649,829 Loans held for sale 1,773 4,488 3,324 Investment securities 1,453,394 1,389,152 1,501,966 Total deposits 4,703,268 4,350,439 4,617,452 Shareholders’ equity 638,607 626,683 635,205