Atlantic Union Bankshares Corporation Announces Merger
Atlantic Union Bankshares Corporation (NYSE: AUB) has entered into a definitive agreement to merge with Sandy Spring Bancorp (Nasdaq: SASR), marking a significant moment in the banking landscape. This union in an all-stock transaction valued at approximately $1.6 billion will likely create a larger, more competitive banking entity in the lower Mid-Atlantic region.
The New Combined Entity
A Stronger Financial Position
The merger will result in a robust financial institution with pro forma total assets estimated at $39.2 billion, achieving a substantial increase in total deposits to $32.0 billion. This strategic move is designed to fortify Atlantic Union Bankshares by expanding its market reach, particularly in Northern Virginia and Maryland, thus enhancing customer experience and service delivery.
Branch Expansion and Wealth Management Growth
Post-merger, the combined entity intends to integrate 53 additional branch locations. This expansion will not only cater to current banking needs but also offer increased opportunities for customers looking for comprehensive financial services. Furthermore, Atlantic Union will significantly boost its wealth management business, adding over $6.5 billion in assets under management. This growth ensures better financial planning and investment strategies for customers throughout the extended footprint.
Leadership Insights
John C. Asbury, President and CEO of Atlantic Union, expressed excitement about the merger, emphasizing the vision to recreate a significant banking presence reminiscent of the 1990s. He highlighted that this is not just a growth strategy, but a commitment to enhance community service across a broader region.
Shared Values and Goals
Daniel J. Schrider, Chair, President and CEO of Sandy Spring Bank, articulated that this partnership reflects mutual values centered around a people-first approach. He noted that the merger will empower employees through enhanced career prospects within a larger, more diversified organization. The collaboration aims to deliver unprecedented value to individuals, families, and businesses across the new service areas.
Conclusion of the Merger Process
Compliance with closing conditions is essential for the transaction to proceed successfully. Both companies expect to finalize the merger by the end of the third quarter of the next year, subject to shareholder and regulatory approval. This careful approach ensures that both entities’ stakeholders are satisfied and that they can capitalize on the merger's benefits.
Looking Forward
Representatives from Morgan Stanley & Co. LLC and Davis Polk & Wardwell LLP are advising Atlantic Union, while Keefe, Bruyette & Woods, Inc. provides similar support to Sandy Spring. To ensure transparency and information dissemination, both banks will host a joint investor conference call soon, allowing stakeholders to ask questions directly about the merger.
Frequently Asked Questions
What is the significance of the merger between Atlantic Union and Sandy Spring?
This merger aims to create the largest regional bank in the lower Mid-Atlantic, enhancing service capability and market reach.
How will customers benefit from this merger?
Customers will gain access to expanded services, including increased branch locations and enhanced wealth management solutions.
When is the expected completion date for the merger?
The merger is anticipated to be finalized by the end of the third quarter of the next year, pending approvals.
What are the financial expectations from the merger?
The combined entity is projected to achieve substantial growth in assets and deposits, fostering financial resilience and competitive market positioning.
Who is involved in the advisory for the merger?
Morgan Stanley & Co. LLC and Davis Polk & Wardwell LLP are advising Atlantic Union, while Sandy Spring is advised by Keefe, Bruyette & Woods, Inc.
