United Bankshares to acquire Piedmont Bancorp in $267m deal

In a significant expansion move, United Bankshares, Inc. (NASDAQ: UBSI), the parent company of United Bank, has announced a definitive merger agreement with Piedmont Bancorp, Inc., the parent company of The Piedmont Bank. The deal, which is set to enhance United’s position as the 39th largest banking entity in the U.S. based on market capitalization, underscores United’s ambitious growth strategy. This acquisition, marking United’s 34th, is poised to strengthen its influence across the Mid-Atlantic and Southeast regions.

Details of the Merger

Under the terms of the agreement, United will acquire all outstanding shares of Piedmont, employing a fixed exchange ratio of 0.300 of United’s shares for each Piedmont share, culminating in an aggregate transaction value of approximately $267 million. The merger, already approved by both companies’ Boards of Directors, will see Piedmont fully integrated into United, with The Piedmont Bank subsequently merging into United Bank.

Enhanced Capabilities and Reach

Post-merger, the combined entity will boast over $32 billion in assets and a robust network of more than 240 locations across eight states and Washington, D.C. This consolidation aims to leverage both banks’ strengths, significantly boosting their market presence in highly competitive banking territories. Piedmont, with $2.1 billion in assets and 16 branches primarily in the Atlanta area, will enrich United’s portfolio, especially in Georgia’s dynamic markets.

United Bankshares to acquire Piedmont Bancorp, Inc. for $267 million to expand its footprint and capabilities in the banking sector.

Leadership and Vision

Richard M. Adams, Jr., CEO of United Bankshares, emphasized the strategic fit between the two institutions, noting their shared commitment to community-focused banking. “We are excited to bring these two great companies together,” said Adams. Monty Watson, Chairman and CEO of The Piedmont Bank, who will join United as Regional President for Georgia, also expressed enthusiasm for the enhanced service capabilities and broader reach the merger would facilitate.

Regulatory and Closing Details

The completion of the merger is anticipated between late Q4 2024 and early Q1 2025, pending customary closing conditions, including approvals from Piedmont’s shareholders and necessary federal regulatory nods, notably from the Federal Reserve.

Financial and Legal Advisors

United’s financial structuring was supported by Raymond James, with legal counsel from Bowles Rice LLP and Sullivan & Cromwell LLP. Piedmont leveraged financial advisement from Piper Sandler & Co. and Burke Stelling Group, LLC, with Alston & Bird LLP providing legal guidance.

This merger not only exemplifies strategic growth via acquisitions but also reflects a broader trend of regional banking consolidation, aimed at creating more competitive and resilient institutions capable of delivering enhanced value to shareholders and customers alike.