UNITED BANKSHARES INC/WV - 10-Q Quarterly Report

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Quarterly Report Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

For Quarter Ended September 30, 2002

Commission File Number: 0-13322

United Bankshares, Inc.

(Exact name of registrant as specified in its charter)

West Virginia		55-0641179
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

300 United Center 500 Virginia Street, East Charleston, West Virginia		25301
(Address of Principal Executive Offices)		Zip Code

Registrant’s Telephone Number, including Area Code: (304) 424-8704

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class- Common Stock, $2.50 Par Value; 42,174,250 shares outstanding as of October 31, 2002.

UNITED BANKSHARES, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

UNITED BANKSHARES, INC. AND SUBSIDIARIES

TABLE OF CONTENTS—Continued

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Item 3. Defaults Upon Senior Securities		Not Applicable

Item 4. Submission of Matters to a Vote of Security Holders		Not Applicable

Item 5. Other Information		Not Applicable

Item 6. Exhibits and Reports on Form 8-K

(a) Exhibits required by Item 601 of Regulation S-K

(b) Reports on Form 8-K

On October 21, 2002, United Bankshares, Inc. filed a Current Report under Items 5 and 7 to report the results of operations for the third quarter and first nine months of 2002.

FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS (UNAUDITED)

The September 30, 2002 and December 31, 2001, consolidated balance sheets of United Bankshares, Inc. and Subsidiaries, the related consolidated statements of income for the three and nine months ended September 30, 2002 and 2001, the related consolidated statement of changes in shareholders’ equity for the nine months ended September 30, 2002, the related condensed consolidated statements of cash flows for the nine months ended September 30, 2002 and 2001, and the notes to consolidated financial statements appear on the following pages.

CONSOLIDATED BALANCE SHEETS

UNITED BANKSHARES, INC. AND SUBSIDIARIES

(Dollars in thousands, except par value)

	September 30, 2002			December 31, 2001
	(Unaudited)			(Note 1)
ASSETS
Cash and due from banks	$	191,964		$	156,058
Interest-bearing deposits with other banks		15,974			1,536

Total cash and cash equivalents		207,938			157,594
Securities available for sale at estimated fair value (amortized cost-$1,072,843 at September 30, 2002 and $1,133,715 at December 31, 2001)		1,099,589			1,147,280
Securities held to maturity (estimated fair value-$297,088 at September 30, 2002 and $280,865 at December 31, 2001)		272,819			281,436
Loans held for sale		519,786			368,625
Loans		3,575,203			3,505,385
Less: Unearned income		(2,923	)		(3,051	)

Loans net of unearned income		3,572,280			3,502,334
Less: Allowance for loan losses		(47,372	)		(47,408	)

Net loans		3,524,908			3,454,926
Bank premises and equipment		48,429			48,394
Goodwill		91,575			80,848
Accrued interest receivable		28,864			32,012
Other assets		54,665			60,660

TOTAL ASSETS	$	5,848,573		$	5,631,775

LIABILITIES
Domestic deposits:
Noninterest-bearing	$	787,669		$	653,785
Interest-bearing		3,194,596			3,134,008

Total deposits		3,982,265			3,787,793
Borrowings:
Federal funds purchased		81,320			43,831
Securities sold under agreements to repurchase		503,389			477,796
Federal Home Loan Bank borrowings		680,191			736,455
Mandatorily redeemable capital securities of subsidiary trust		8,865			8,800
Other borrowings		5,060			5,501
Accrued expenses and other liabilities		49,710			65,070

TOTAL LIABILITIES		5,310,800			5,125,246
SHAREHOLDERS’ EQUITY
Common stock, $2.50 par value; Authorized-100,000,000 shares; issued-43,381,769 at September 30, 2002 and December 31, 2001, including 1,104,058 and 455,258 shares in treasury at September 30, 2002 and December 31, 2001, respectively		108,454			108,454
Surplus		89,977			84,122
Retained earnings		357,095			320,577
Accumulated other comprehensive income		13,366			4,351
Treasury stock, at cost		(31,119	)		(10,975	)

TOTAL SHAREHOLDERS’ EQUITY		537,773			506,529

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	5,848,573		$	5,631,775

See notes to consolidated unaudited financial statements.

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

UNITED BANKSHARES, INC. AND SUBSIDIARIES

(Dollars in thousands, except per share data)

	Three Months Ended September 30						Nine Months Ended September 30
	2002			2001			2002			2001
Interest income
Interest and fees on loans	$	65,278		$	66,862		$	192,958		$	207,170
Interest on federal funds sold and other short-term investments		61			140			506			634
Interest and dividends on securities:
Taxable		18,742			20,617			55,718			57,849
Tax-exempt		2,332			2,677			7,207			8,336

Total interest income		86,413			90,296			256,389			273,989
Interest expense
Interest on deposits		19,185			28,943			61,260			93,057
Interest on short-term borrowings		2,732			3,630			7,497			10,977
Interest on long-term borrowings		10,760			11,148			31,832			32,931

Total interest expense		32,677			43,721			100,589			136,965

Net interest income		53,736			46,575			155,800			137,024
Provision for loan losses		1,823			4,145			5,725			8,787

Net interest income after provision for loan losses		51,913			42,430			150,075			128,237
Other income
Income from mortgage banking operations		11,203			7,343			24,801			19,037
Service charges, commissions, and fees		8,299			6,764			23,287			19,428
Income from fiduciary activities		2,303			2,082			6,692			6,291
Security losses		(4,368	)		(647	)		(4,961	)		(1,223	)
Other income		1,292			214			2,117			1,064

Total other income		18,729			15,756			51,936			44,597
Other expense
Salaries and employee benefits		21,595			15,650			58,367			45,579
Net occupancy expense		3,252			2,565			9,312			7,906
Other expense		13,850			10,667			37,877			31,846

Total other expense		38,697			28,882			105,556			85,331

Income before income taxes		31,945			29,304

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PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements

	Consolidated Balance Sheets (Unaudited) September 30, 2002 and December 31, 2001	5

	Consolidated Statements of Income (Unaudited) for the Three and Nine Months Ended September 30, 2002 and 2001	6

	Consolidated Statement of Changes in Shareholders’ Equity (Unaudited) for the Nine Months Ended September 30, 2002	7

	Condensed Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30, 2002 and 2001	8

	Notes to Consolidated Financial Statements	9

	Information required by Item 303 of Regulation S-K

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	29

Item 4.	Controls and Procedures	34

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	Not Applicable

Item 2.	Changes in Securities	Not Applicable

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