United Bankshares to Consolidate with Piedmont Bancorp in Anticipation of Industry Consolidation under Yellen’s Prediction

Following the failure of three mid-sized US banks in 2021, Treasury Secretary Janet Yellen predicted that the current banking environment and revenue challenges for some regional US banks could result in further consolidation within the sector. United Bankshares, a US regional lender, has announced a deal to acquire smaller rival Piedmont Bancorp for approximately $267 million. United Bankshares anticipates that the acquisition will widen its reach in the greater Atlanta region. At the time of writing, United Bankshares’ stock had fallen by almost 9% this year, with a market capitalisation of roughly $4.63 billion. Late last month, UMB Financial Corp agreed to purchase smaller rival Heartland Financial in an all-stock transaction valued at around $2 billion, resulting in the creation of a bank with more than $32 billion in assets and over 240 branches. Piedmont Bancorp, based in Georgia, has assets totalling roughly $2.1 billion spread across 16 locations. By the end of March 2021, United Bankshares’ consolidated assets amounted to around $30 billion. United Bankshares announced a Q1 net profit of 64 cents per share for April, down from 73 cents per share in the same period last year. The two parties anticipate that the acquisition will be finalised in either the fourth quarter of 2024 or the first quarter of 2025. (Source: Reuters)