United Bankshares, Inc. Receives Final Regulatory Approval for Piedmont Bancorp Acquisition

Rhea-AI Summary

United Bankshares (NASDAQ: UBSI) has received final regulatory approvals from the Federal Reserve and state banking authorities for its proposed merger with Piedmont Bancorp. The merger will expand United's footprint into the greater Atlanta area, creating a combined organization with over $32 billion in assets and more than 240 locations across eight states and Washington, D.C. Under the agreement, United will acquire 100% of Piedmont's outstanding shares in exchange for United common shares. The merger is expected to close in early 2025, with operational conversion anticipated in late first quarter 2025.

Positive

• Expansion into the attractive Atlanta market
• Combined entity will have over $32 billion in assets
• Network expansion to over 240 locations across eight states and D.C.
• All regulatory approvals obtained

Negative

• Potential shareholder dilution due to stock-based acquisition

Insights

Financial Analyst

This regulatory approval marks a significant milestone for United Bankshares' expansion strategy. The acquisition of Piedmont Bancorp will increase United's total assets to over $32 billion and expand its footprint into the lucrative Atlanta market. The all-stock transaction strengthens United's presence in the Southeast, adding to their impressive track record of 34 successful acquisitions. The merger's timing, set for early 2025 with operational conversion by Q1's end, allows for methodical integration. This strategic move into Georgia's growing market should enhance United's competitive position and create new revenue opportunities. The expansion into Atlanta's metropolitan area, known for its robust economic growth and diverse business landscape, positions United for stronger market penetration in the Southeast region.

WASHINGTON, D.C. & CHARLESTON, W.Va.--(BUSINESS WIRE)-- United Bankshares, Inc. (“United”) (NASDAQ: UBSI), the parent company of United Bank, today announced it has received all requisite regulatory approvals for its proposed merger with Piedmont Bancorp, Inc. (“Piedmont”), the parent company of The Piedmont Bank.

“We are pleased to have received regulatory approval from the Federal Reserve and state banking authorities for this merger, and we remain excited about expanding our footprint into the greater Atlanta area,” said Richard M. Adams, Jr., CEO of United Bankshares, Inc. “We look forward to bringing these two strong companies together to deliver excellence in service to customers and communities across this thriving market.”

This merger strengthens United’s position in the Mid-Atlantic and Southeast. The combined organization will have more than $32 billion in assets and a network of over 240 locations across eight states and Washington, D.C., in some of the nation's most desirable banking markets. This transaction represents United’s 34^th acquisition.

The respective boards of directors of United and Piedmont previously approved the merger agreement. In addition, the stockholders of Piedmont have approved the merger. Under the agreement, United will acquire 100% of the outstanding shares of Piedmont in exchange for common shares of United. The merger is expected to close in early 2025, subject to the satisfaction of customary closing conditions. At that time, Piedmont will merge into United, and The Piedmont Bank will merge into United Bank, with United and United Bank being the surviving entities. The former Piedmont offices will operate under the DBA United Bankshares in the State of Georgia. The operational conversion is anticipated to take place in late first quarter of 2025.

About United Bankshares, Inc.

As of September 30, 2024, United had consolidated assets of approximately $30 billion. United is the parent company of United Bank, which comprises more than 225 offices located throughout Washington, D.C., Virginia, West Virginia, Maryland, North Carolina, South Carolina, Ohio, Pennsylvania, and Georgia. United’s stock is traded on the NASDAQ Global Select Market under the quotation symbol "UBSI".

View source version on businesswire.com: https://www.businesswire.com/news/home/20241202749534/en/

Investor Contact: W. Mark Tatterson Chief Financial Officer

(800) 445-1347 ext. 8716

Media Contact: Jacquie Toppings

VP, Director of Communications

Jacquie.Toppings@bankwithunited.com

Source: United Bankshares, Inc.

FAQ

When will United Bankshares (UBSI) complete the Piedmont Bancorp merger?

The merger is expected to close in early 2025, with operational conversion anticipated in late first quarter 2025.

How many locations will United Bankshares (UBSI) have after the Piedmont merger?

The combined organization will have over 240 locations across eight states and Washington, D.C.

What will be the total assets of United Bankshares (UBSI) after acquiring Piedmont?

The combined organization will have more than $32 billion in assets.

How will United Bankshares (UBSI) acquire Piedmont Bancorp?

United will acquire 100% of Piedmont's outstanding shares in exchange for common shares of United.