May 10 (Reuters) - United Bankshares ( UBSI ) has agreed

to buy smaller rival Piedmont Bancorp in a deal valued at about

$267 million, the lenders said on Friday, amid growing

consolidation in the U.S. regional banking industry.

WHY IT'S IMPORTANT

High interest rates, exposure to commercial real estate and

muted loan activity have clouded the outlook for regional U.S.

lenders which are more susceptible to economic fluctuations

compared with larger so-called 'too-big-to-fail' rivals.

Last year, the failure of three mid-sized U.S. banks

reverberated across the global financial system. In the

aftermath, Treasury Secretary Janet Yellen had said the current

banking environment and pressures on earnings of some U.S.

regional banks may lead to some consolidation in the sector.

CONTEXT

United Bankshares ( UBSI ) expects the acquisition will expand its

reach in the greater Atlanta area.

Its stock is down nearly 9% this year, through previous

close, giving it a market cap of about $4.63 billion.

Piedmont's CEO Monty Watson will serve as regional president

responsible for Georgia operations at United Bankshares ( UBSI ) after

the deal closes.

Late last month, regional lender UMB Financial Corp ( UMBF )

agreed to buy smaller rival Heartland Financial in an

all-stock deal valued at about $2 billion.

BY THE NUMBERS

The deal will create a combined bank with more than $32

billion in assets and a network of over 240 locations.

Georgia-based Piedmont has about $2.1 billion in assets and

operates in 16 locations. As of March 31, consolidated assets of

United Bankshares ( UBSI ) totaled about $30 billion.

United Bankshares ( UBSI ) reported a first-quarter profit in April

that fell to 64 cents per share compared with 73 cents per share

a year earlier.

WHAT'S NEXT

The companies expect the deal to close in the fourth quarter

of 2024 or in the first quarter of 2025.