United Bankshares, Inc. (NASDAQ: UBSI), today reported record third quarter earnings per share for 2001 of 48¢ or $19.8 million net profit, a 9% increase from the 44¢ or $18.6 million earned in the third quarter of 2000. Record earnings for the first three quarters of 2001 of $1.41 a share or $58.9 million also grew 9% over the first three quarters of 2000 earnings of $1.29 per share or $54.7 million. Cash earnings per share were 49¢ and $1.45 for the third quarter and first nine months of 2001, respectively, compared to 45¢ and $1.33 for the third quarter and first nine months of 2000.

United’s key performance ratios remain strong. Third quarter 2001 annualized returns on average assets and average equity were 1.55% and 17.31%, respectively. For the nine months ended September 30, 2001, United achieved an annualized return on average assets of 1.59% and an annualized return on average equity of 17.57%. On a cash basis, the annualized return on average tangible assets was 1.60% and 1.64% for the third quarter and first nine months of 2001, respectively, while the annualized return on average tangible equity was 19.37% and 19.72%, respectively for the corresponding periods in 2001. These key financial performance indicators are reflective of United’s earnings strength as United continues to be one of the best performing regional banking companies in the nation.

Tax-equivalent net interest income for the third quarter of 2001 was $49.5 million; up from the second quarter of 2001 and an increase of $2.5 million from the third quarter of 2000. The net interest margin for the third quarter 2001 of 4.14% was a 10 basis points increase over the previous year’s quarter net interest margin of 4.04%. The interest rate spread for the current quarter increased 2 basis points from the preceding quarter as variable rate liabilities repriced faster than variable rate assets as the Federal Reserve continued to cut interest rates to stimulate a slowing economy. United’s tax-equivalent net interest margin for the first nine months of 2001 was also 4.14% compared to 4.13% for the same time period in 2000.

Noninterest income, excluding security transactions, for the third quarter of 2001 rose 26.2% from the third quarter of 2000 and 5.1% over the second quarter of 2001. Income from mortgage banking and trust operations increased 46.5% and 19.0%, respectively for the third quarter of 2001 as compared to the third quarter of 2000. On a linked-quarter basis, mortgage banking income increased by 13.5%. Noninterest income, excluding security transactions, for the first nine months of 2001 was up 29.3% from the first nine months of 2000.

Noninterest expense increased 13.4% for the quarter compared to the prior year’s third quarter and was up 5.7% for the first nine months due mainly to higher sales activity in the mortgage banking segment as compensation and incentives for its personnel are significantly tied to activity levels. On a linked-quarter basis, noninterest expense remained relatively constant. The efficiency ratio was still a low 42.34% and 43.05% for the third quarter and first nine months of 2001, respectively. This ratio compares very favorably to regional and national peer group banking companies.

United's asset quality continues to compare favorably with peer and industry averages. Consistent with a weakening economy, nonperforming assets and net charge-offs rose for the quarter but remain below previous year’s levels. Nonperforming assets were $17.8 million or 0.34% of total assets at September 30, 2001 compared to $18.2 million or 0.37% of total assets at September 30, 2000. The provision for loan losses for the three months ended September 30, 2001 amounted to $4.1 million compared to $4.4 million for the same period in 2000. The provision for loan losses for the nine months ended September 30, 2001 was $8.8 million compared to $10.8 million for the prior year-to-date. Net charge-offs were $2.8 million for the third quarter of 2001 which was a decline from net charge-offs of $4.3 million for the prior year quarter. Net charge-offs for the first nine months of 2001 were $6.8 million, a decrease from net charge-offs of $11.0 million for the first nine months of 2000. As of September 30, 2001, the allowance for loan losses was $42.6 million or 1.32% of loans, net of unearned income.

Total assets have grown $261.3 million or 5% since year end 2000. Shareholders’ equity has increased $31.6 million or 7% since year end resulting in a book value per share of $11.23. United is categorized as well capitalized based on the risk-based capital ratio, considerably exceeding the regulatory minimum requirement. These measures provide evidence that United’s financial position is strong.

During the quarter, United’s Board of Directors declared a cash dividend of 23¢ per share, a 10% increase over the 21¢ per share declared in the third quarter of 2000. The annualized year-to-date dividend would equal 91¢ per share, which would represent the twenty-eighth consecutive year of dividend increases for United shareholders.

United recently signed a definitive merger agreement with Century Bancshares, Inc. of Washington, D.C., with assets of approximately $415 million. The transaction, which is expected to close during the fourth quarter of 2001, will increase United’s Virginia franchise to more than $2 billion in assets and will rank United as the ninth largest bank in the Virginia and Washington, D.C. MSA. Following completion of the proposed merger with Century, United will have consolidated assets over $5.4 billion with 86 full service offices in West Virginia, Virginia, Maryland, Ohio and Washington, D.C. Consummation of the transaction is subject to approval of the shareholders of Century and the receipt of all regulatory approvals, as well as other customary conditions.

United Bankshares stock is traded on the NASDAQ (National Association of Securities Dealers Quotation System) National Market System under the quotation symbol "UBSI".