Atlantic Union Bankshares wraps up merger with American National Bankshares

In a significant move that reshapes the banking landscape of the mid-Atlantic region, Atlantic Union Bankshares Corporation has officially completed its merger with American National Bankshares Inc. The deal, which closed on April 1, 2024, was previously announced and has been keenly watched by industry insiders. This merger marks a pivotal step for Atlantic Union, bolstering its presence in Central, Western, and Southern Virginia, and notably, making a strategic entry into North Carolina’s Piedmont Triad region and Raleigh. Under the merger agreement’s terms, shareholders of American National Bankshares Inc. (“American National”) are set to receive 1.35 shares of Atlantic Union common stock for each share they hold, with cash considerations provided for fractional shares. The transaction, valued at approximately $507 million, is based on Atlantic Union’s closing stock price of $35.31 as of March 28, 2024.

“We are excited to have the American National team officially join Atlantic Union Bank,” expressed John C. Asbury, President and CEO of Atlantic Union. He highlighted the combined centuries of experience the merged entities bring to serving community needs across the region, emphasizing the opportunity to introduce new products and services to American National’s clients. Asbury’s vision for the merger centers on sustainable, long-term shareholder value.

Following the merger, Nancy Howell Agee and Joel R. Shepherd have been appointed to the Boards of Directors of Atlantic Union and its banking subsidiary, reinforcing the leadership framework poised to steer the expanded entity. In a post-merger landscape, Atlantic Union Bankshares Corporation reports pro forma total assets of $24.3 billion, with deposits summing up to $19.4 billion and total loans held for investment reaching $17.9 billion, as of December 31, 2023.

The merger led to the consolidation of American National Bank and Trust Company into Atlantic Union Bank, enhancing Atlantic Union’s network to 135 branches and around 150 ATMs across Virginia, Maryland, and North Carolina. Atlantic Union Bankshares Corporation, headquartered in Richmond, Virginia, extends beyond traditional banking services, incorporating equipment financing, brokerage services, and various insurance products through its non-bank financial services affiliates.

This merger not only signifies a growth trajectory for Atlantic Union Bankshares Corporation but also illustrates the dynamic nature of the banking industry, where strategic consolidations are increasingly pivotal in achieving competitive advantage and serving broader community needs more effectively.

The completion of this merger is a testament to the strategic vision of both Atlantic Union Bankshares Corporation and American National Bankshares Inc. It highlights the importance of scale in the banking industry, enabling the combined entity to leverage increased resources, expand its product offerings, and enhance its market presence in key regions. This move is likely to set a precedent for future mergers and acquisitions within the sector, as banks continue to seek opportunities to improve service delivery, operational efficiency, and shareholder returns in a competitive financial landscape.