United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Merger or Acquisition (May 2024)
15 slides from United Bankshares's merger presentation, May 10, 2024
Slide 1: UBSI to Acquire Piedmont Bancorp, Inc.
UBSI expands into the attractive Greater Atlanta Area, adding to its growing presence in the Southeast. United Bankshares, Inc. (UBSI) to Acquire Piedmont Bancorp, Inc. May 10, 2024 Exhibit 99.2
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Forward Looking Statements This presentation and statements made by United Bankshares, Inc. (“UBSI”) and its management contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934
Slide 3: Forward Looking Statements (Continued)
FORWARD LOOKING STATEMENTS (Continued) UBSI and Piedmont caution that the foregoing list of factors is not exclusive. All subsequent written and oral forward-looking statements concerning the proposed transaction or other matters attributable to UBSI or Piedmont or any person acting on their behalf
Slide 4: Entrance into Greater Atlanta Area markets with robust economic growth opportunities
Entrance into Greater Atlanta Area markets with robust economic growth opportunities The Atlanta MSA ranks #1 by population in UBSI’s pro forma footprint and 6th largest in the United States(1) Atlanta MSA - projected population growth of 4.5%, and household income growth of 8.7% from 2024-2029 Prov
Slide 5: Piedmont Franchise Overview
PIEDMONT FRANCHISE OVERVIEW Note: Financial highlights shown as bank level Source: S&P Capital IQ Pro Financial Highlights Monty Watson Chief Executive Officer of Piedmont Bank will become Regional President for United Bank
Slide 6: Pro Forma Franchise Overview
Total Assets PRO FORMA FRANCHISE OVERVIEW Note: Pro forma financial information at anticipated closing date based on assumptions provided as described on pages 7 and 14 Source: S&P Capital IQ Pro $25.5 Billion $31.8 Billion Net Loans Total Deposits Tangible Common Equity $23.7 Billion $3.1 Billion 2
Slide 7: Transaction Overview
TRANSACTION OVERVIEW Transaction Valuation Pro Forma Ownership Timing and Approvals Aggregate Deal Value: $267 million(1)(2) Consideration Mix: 100% stock Per Share Purchase Price: $10.17(1)(2) Fixed Exchange Ratio: 0.300x Pro Forma Governance Transaction Summary Price / 2024E EPS: 9.7x Price / 2025
Slide 8: Atlanta: The South's Business Hub
ATLANTA: THE SOUTH’S BUSINESS HUB Source: S&P Capital IQ Pro; City of Atlanta; Metro Atlanta Chamber; Georgia USA Companies Headquartered in Atlanta Demographics #6 Largest MSA by Population in the United States Ranks #1 in UBSI’s Pro Forma Footprint Home to 18 Fortune 500 Companies #1 US Housing Ma
Slide 9: Compelling Financial Impact
COMPELLING FINANCIAL IMPACT GAAP Metrics Excl. Rate Marks + AOCI(1) Earnings Impact 7.6% 2025 EPS(2) Accretion 8.3% 2026 EPS Accretion 4.0% 2025 EPS(2) Accretion 4.7% 2026 EPS Accretion Tangible Book Value Impact (3.5)% TBV Dilution 2.8 Years TBV Earnback(3) (1.7)% TBV Dilution 2.5 Years TBV Earnbac
Slide 10: Pro Forma Loan Composition
PRO FORMA LOAN COMPOSITION Regulatory Loan Composition UBSI Total Loans & Leases: $21.6 Billion Piedmont Total Loans & Leases: $1.7 Billion Pro Forma Total Loans & Leases: $23.3 Billion Yield on Loans & Leases: 5.97% Yield on Loans & Leases: 7.16% Yield on Loans & Leases: 6.06% Note: Bank level data
Slide 11: Pro Forma Deposit Composition
PRO FORMA DEPOSIT COMPOSITION Regulatory Deposit Composition UBSI Total Deposits: $23.2 Billion Piedmont Total Deposits: $1.8 Billion Pro Forma Total Deposits: $25.0 Billion Note: Bank level data as of quarter ended March 31, 2024 Source: S&P Capital IQ Pro Cost of Deposits: 2.23% Cost of Deposits:
Slide 12: Piedmont: History of Profitability
PIEDMONT: HISTORY OF PROFITABILITY Note: Bank level financial data Source: S&P Capital IQ Pro Return on Average Assets Return on Average Equity Net Interest Margin Efficiency Ratio
Slide 13: Piedmont: Historical Credit Quality
PIEDMONT: HISTORICAL CREDIT QUALITY Commentary LLR / Gross Loans NCOs / Avg. Loans NPAs / Assets Piedmont’s overall credit quality remains solid with limited charge-offs and no nonaccrual assets for the past two years Long-term lending relationships with excellent credit history and strong ties to t
Slide 14: Key Transaction Assumptions
Earnings, Synergies & Cost Savings KEY TRANSACTION ASSUMPTIONS Loan Mark and CECL Assumptions Transaction Expenses Due Diligence FMV Adjustments Core Deposit Intangible Growth assumptions modeled conservatively and consistent with recent trends of target’s performance Preliminary Cost Savings: 25% o
Slide 15: Demonstrated History of Successful Acquisitions
DEMONSTRATED HISTORY OF SUCCESSFUL ACQUISITIONS (1) Estimated total pro forma assets at transaction close Source: S&P Capital IQ Pro; Company filings (1)