United Bankshares, Inc. (NASDAQ: UBSI), announced today that it has
decided not to participate in the U.S. Department of the Treasury’s
(“Treasury”) Capital Purchase Program (“CPP”) under the Emergency
Economic Stabilization Act of 2008. United disclosed last month that it
had received preliminary approval to receive up to $197.28 million of
capital from the CPP.
“United is honored to have been approved for participation in the
Treasury’s CPP, which is only available to sound financial
institutions,” stated United Chairman and CEO Richard M. Adams.
“However, after careful consideration, we believe it is in the best
interests of our shareholders not to participate. The program’s
restrictions on possible future dividend increases, the dilution to
earnings, and the uncertainty surrounding future requirements of the
program outweighed the benefits of United’s participation in the
program.”
“United currently maintains a capital level exceeding the regulatory
requirements for a well-capitalized institution and is meeting the
lending needs of our customers,” stated Adams. “Despite the economic
difficulties over the past year, United’s loans grew approximately $220
million for the year of 2008.”
United has consolidated assets of approximately $8.1 billion with 114
full service offices in West Virginia, Virginia, Maryland, Ohio and
Washington, D.C. United Bankshares stock is traded on the NASDAQ Global
Select Market 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.
Steven E. Wilson, Chief Financial
Officer
800-445-1347 ext. 8704
