Atlantic Union Bankshares and Sandy Spring Bancorp secure final approvals for $1.6bn merger
Atlantic Union Bankshares Corporation and Sandy Spring Bancorp, Inc. have reached a pivotal milestone in their planned $1.6 billion all-stock merger, having secured all necessary shareholder and regulatory approvals. The transaction, first announced in October 2024, is now on track to close on April 1, 2025, pending the completion of customary closing conditions. This merger is set to reshape the banking landscape in the mid-Atlantic region, positioning Atlantic Union Bankshares Corporation as the largest regional bank headquartered in the lower mid-Atlantic.
The deal has garnered strong support from both institutions’ shareholders. Atlantic Union’s shareholders and Sandy Spring’s stockholders approved the merger during their respective special meetings held on February 5, 2025. In addition to shareholder backing, the merger has cleared all required regulatory hurdles, further solidifying the transaction’s path to completion.
John C. Asbury, President and Chief Executive Officer of Atlantic Union Bankshares Corporation, highlighted the strategic benefits of the merger, emphasising that the combined entity will create a regional banking powerhouse with an expanded footprint across Virginia, Maryland, and Washington, D.C. “The merger will benefit our customers through an expanded and more convenient branch network, enhanced product offerings, a robust community benefit plan, and access to greater capital,” said Asbury. He also noted that the merger would create opportunities for employees while enhancing long-term shareholder value.
Daniel J. Schrider, Chair, President, and Chief Executive Officer of Sandy Spring Bancorp, Inc., expressed optimism about the integration, stating that the merger represents a transformative step for both organisations. “This partnership marks the beginning of a new chapter, and we’re eager to see the transformative impact it will have on our combined organisation,” Schrider said.
How Will the Atlantic Union and Sandy Spring Merger Impact the Mid-Atlantic Banking Landscape?
The merger between Atlantic Union Bankshares Corporation and Sandy Spring Bancorp is more than just a corporate transaction; it is a strategic move designed to consolidate the banks’ presence in the competitive mid-Atlantic region. Under the terms of the agreement, each outstanding share of Sandy Spring Bancorp will be exchanged for 0.900 shares of Atlantic Union’s common stock. Based on Atlantic Union’s stock price as of October 18, 2024, this values Sandy Spring shares at approximately $34.93.
The merger will create a financial institution with pro forma assets of $39.2 billion, deposits totalling $32.0 billion, and gross loans amounting to $29.8 billion as of September 30, 2024. The combined entity will significantly expand Atlantic Union’s footprint, adding 53 new branch locations and increasing wealth management assets by over $6.5 billion—nearly doubling the company’s existing wealth business.
This expanded reach will strengthen the bank’s presence in key markets, particularly Northern Virginia and Maryland, where Sandy Spring holds the top regional depository market share. The merger positions Atlantic Union as a dominant force in the region, enhancing its ability to compete with larger national banks while maintaining the community-focused approach that both institutions are known for.
What Does This Merger Mean for Customers, Employees, and Shareholders?
For customers, the merger promises enhanced banking services through a more extensive branch network and a broader range of financial products. The combined company will offer greater convenience, with increased access to banking locations across Virginia, Maryland, and Washington, D.C. Customers will also benefit from improved digital banking platforms, reflecting Atlantic Union’s commitment to innovation and customer-centric services.
Employees from both institutions stand to gain from expanded career opportunities. Asbury highlighted that the merger would provide “teammates with greater resources and capabilities,” fostering professional development within a larger, more dynamic organisation. The merger is expected to create a more resilient company culture that leverages the strengths of both banks, offering employees new pathways for growth and advancement.
For shareholders, the merger is positioned to deliver long-term value through increased scale, operational efficiencies, and enhanced revenue opportunities. Atlantic Union’s strong financial performance in 2024 provides a solid foundation for this growth. The company reported net income available to common shareholders of $54.8 million for the fourth quarter of 2024, with adjusted operating earnings of $61.4 million. For the full year, net income reached $197.3 million, while adjusted operating earnings stood at $241.3 million.
Asbury reaffirmed the company’s commitment to sustainable growth, stating, “Operating under the mantra of soundness, profitability, and growth – in that order of priority – Atlantic Union remains committed to generating sustainable, profitable growth and building long-term value for our shareholders.”
What Are the Financial Details Behind the Atlantic Union-Sandy Spring Merger?
The merger agreement was first announced in October 2024 when Atlantic Union Bankshares Corporation revealed its plans to acquire Sandy Spring Bancorp in an all-stock transaction valued at approximately $1.6 billion. The deal is part of Atlantic Union’s strategy to strengthen its position in the mid-Atlantic region by leveraging Sandy Spring’s strong market presence.
Under the agreement, Sandy Spring shareholders will receive 0.900 shares of Atlantic Union common stock for each Sandy Spring share they own. This structure reflects a strategic focus on long-term growth and shareholder value, as it aligns the interests of both companies’ stakeholders.
The merger will create a diversified financial institution with robust balance sheet metrics. As of September 30, 2024, the combined company’s pro forma assets total $39.2 billion, with deposits of $32.0 billion and gross loans of $29.8 billion. The transaction is expected to generate cost synergies through operational efficiencies and increased economies of scale, although both companies have emphasised their commitment to maintaining strong community banking relationships.
What’s Next for the Atlantic Union and Sandy Spring Merger?
With all necessary shareholder and regulatory approvals secured, the merger is now in its final stages. The transaction is expected to close on April 1, 2025, pending the satisfaction of customary closing conditions. Once completed, the integration process will focus on aligning operations, systems, and corporate cultures to ensure a seamless transition for customers, employees, and stakeholders.
The leadership teams from both banks are confident that the merger will achieve its strategic objectives, creating a stronger, more competitive institution positioned for sustained growth in the evolving financial landscape.
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