[0] United Bankshares, Inc. Announces Record Earnings for Second Quarter and First Half of 2000.Business Editors PARKERSBURG Parkersburg, city (1990 pop. 33,862), seat of Wood co., NW W.Va., at the confluence of the Little Kanawha and Ohio rivers; settled 1785, inc. 1820. An industrial and shipping center in a coal region, it has food and dairy processing and industries that make aluminum , W. Va.--(BUSINESS WIRE)--July 20, 2000 United Bankshares, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : UBSI), today reported record earnings for the second quarter and the first half of 2000. Earnings per share improved by 8% for the second quarter and first half of 2000 to 43 cents and 85 cents as compared to 40 cents and 79 cents for the same periods of 1999, respectively. Quarterly net income was $18.1 million compared with $17.8 million a year earlier. Net income for the first six months of 2000 was $36.1 million compared to $35.0 million for the prior year's first six months. Cash earnings per share were 44 cents and 88 cents for the second quarter and first half of 2000, respectively. United's key performance ratios were strong for the three months and six months ended June 30, 2000. United's return on average assets was 1.47% and 1.46%, respectively while the return on average equity was 18.19% and 18.12%, respectively. On a cash basis, return on average tangible assets Tangible Asset An asset that has a physical form such as machinery, buildings and land. Notes: This is the opposite of an intangible asset such as a patent or trademark. Whether an asset is tangible or intangible isn't inherently good or bad. was 1.53% for both the second quarter and first half of 2000 and return on average tangible equity was 20.84% and 20.90%, respectively for the same periods of time. These key financial performance ratios are indicative of United's earnings strength and strong capital levels. United continues to be one of the best performing regional banking companies in the nation. United continues to maintain effective cost control measures. Noninterest expense for the quarter declined 7% compared to the second quarter of 1999 and was down 5% for the first six months of 2000 over last year's first six months' results. The efficiency ratio was a low 43.56% and 44.44% for the second quarter and first half of 2000, respectively. This ratio compares very favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to regional and national peer group banking companies. United's asset quality improved for the quarter and remains sound with the nonperforming asset Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. level at 0.4% of total assets, a 10 basis point decline from the end of March. As of June 30, 2000, the allowance for loan losses was $39.3 million or 1.24% of net loans and provided coverage of 230% of nonperforming loans. United is categorized cat·e·go·rize tr.v. cat·e·go·rized, cat·e·go·riz·ing, cat·e·go·riz·es To put into a category or categories; classify. cat as well capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. based on the risk-based capital ratio Risk-based capital ratio Bank requirement that there be a minimum ratio of estimated total capital to estimated risk-weighted asset. , considerably exceeding the regulatory minimum requirement. All these measures provide evidence that United's financial position is strong. During the quarter, United's Board of Directors declared a cash dividend of 21 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , a 5% increase over the 20 cent per share paid in the second quarter of 1999. The annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. first half dividend of 42 cent per share equals 84 cent which would represent the twenty-seventh consecutive year of dividend increases for United shareholders. United Bankshares, with $5 billion in assets, has 77 full-service offices in West Virginia West Virginia, E central state of the United States. It is bordered by Pennsylvania and Maryland (N), Virginia (E and S), and Kentucky and, across the Ohio R., Ohio (W). Facts and Figures Area, 24,181 sq mi (62,629 sq km). Pop. , Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). , Maryland Maryland (mâr`ələnd), one of the Middle Atlantic states of the United States. It is bounded by Delaware and the Atlantic Ocean (E), the District of Columbia (S), Virginia and West Virginia (S, W), and Pennsylvania (N). , Ohio, and Washington, D.C. United D.C. United is a professional soccer club located in Washington, D.C. that participates in Major League Soccer. The club's official nickname is the "Black-and-Red" and home uniforms are black and white with accents of red. The team's name refers to Washington, D.C. Bankshares stock is traded on the NASDAQ (National Association of Securities Dealers National Association of Securities Dealers (NASD) Nonprofit organization formed under the joint sponsorship of the investment bankers' conference and the SEC to comply with the Maloney Act, which provides for the regulation of the OTC market. Quotation QUOTATION, practice. The allegation of some authority or case, or passage of some law, in support of a position which it is desired to establish. 2. Quotations when properly made, assist the reader, but when misplaced, they are inconvenient. System) National Market System under the quotation symbol "UBSI". This press release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , 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 Six Months Ended
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June 30 June 30 June 30 June 30
2000 1999 2000 1999
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EARNINGS SUMMARY:
Interest income, taxable
equivalent $96,577 $88,391 $192,721 $175,160
Interest expense 48,632 42,415 95,174 81,948
Net interest income,
taxable equivalent 47,945 45,976 97,547 93,212
Taxable equivalent
adjustment 2,514 1,369 5,390 2,634
Net interest income 45,431 44,607 92,157 90,578
Provision for loan losses 3,851 1,761 6,398 2,525
Income (loss) from mortgage 4,159 6,095 7,542 10,513
banking operations
Gain (loss) on security 505 71 823 71
transactions
Other noninterest income 7,800 6,287 14,900 12,508
Noninterest expenses 27,106 29,070 55,249 57,891
Income taxes 8,815 8,433 17,664 18,297
Net income 18,123 17,796 36,111 34,957
Cash dividends paid 8,812 8,667 17,691 17,325
PER COMMON SHARE:
Net income:
Basic 0.43 0.41 0.86 0.81
Diluted 0.43 0.40 0.85 0.79
Diluted - cash basis 0.44 0.42 0.88 0.82
Cash dividends paid 0.21 0.20 0.42 0.40
Book value 9.60 9.19
Closing market price 18.188 26.500
Common shares outstanding:
Actual, net of 41,910,723 43,263,106
treasury shares
Average basic 41,931,050 43,322,319 42,110,730 43,298,879
Average diluted 42,264,141 44,013,035 42,449,089 43,976,863
FINANCIAL RATIOS:
Return on average
assets 1.47% 1.47% 1.46% 1.50%
Return on average
shareholders' equity 18.19% 16.43% 18.12% 16.30%
Average equity to average
assets 8.11% 8.97% 8.08% 9.19%
Net interest margin 4.13% 4.03% 4.18% 4.20%
June 30 June 30 Dec. 31 March 31
2000 1999 1999 2000
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PERIOD END BALANCES:
Assets 4,991,051 5,005,240 5,069,160 4,980,745
Earning assets 4,740,443 4,728,576 4,789,191 4,734,578
Loans, net of unearned
income 3,221,646 2,887,818 3,170,096 3,230,245
Loans held for sale 153,701 146,656 117,825 102,109
Investment securities 1,353,317 1,690,711 1,472,553 1,396,949
Total deposits 3,270,925 3,391,484 3,260,985 3,274,505
Shareholders' equity 402,135 397,596 395,930 393,822
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