Atlantic Union Bankshares & Sandy Spring Bancorp Merger: A Major Move in Regional Banking (AUB SASR)

The financial landscape of the Mid-Atlantic region is about to experience a significant transformation. Atlantic Union Bankshares Corporation and Sandy Spring Bancorp, Inc. have announced their official plans to merge, forming a stronger, more competitive banking entity.

With shareholder and regulatory approval now secured, the merger is set to finalize on April 1, 2025. This deal marks a strategic move to expand market presence, enhance service offerings, and create a leading regional bank with a robust financial foundation.

What Does This Merger Mean?

• Expanded Market Reach: A combined network of branches across Virginia, Maryland, and parts of North Carolina.

• Enhanced Financial Offerings: More products, including commercial and retail banking, mortgage services, and wealth management.

• Stronger Shareholder Value: Increased market share and improved operational efficiency.

• Community Impact: A commitment to supporting local businesses and communities through expanded programs.

With all necessary approvals in place, Atlantic Union CEO John C. Asbury expressed confidence in the move:

"The merger will create a unique franchise by merging the #1 regional depository banks in both Virginia and Maryland, providing expanded services, greater capital access, and more career opportunities for employees"​.

Key Details of the Merger

• Acquiring Company: Atlantic Union Bankshares Corporation (NYSE: AUB)

• Target Company: Sandy Spring Bancorp, Inc. (NASDAQ: SASR)

• Merger Completion Date: April 1, 2025

• Shareholder and Regulatory Approval: Granted as of February 5, 2025​

• Exchange Ratio: 0.900 shares of Atlantic Union common stock for each Sandy Spring share​

• Stockholder Ownership Breakdown: Former Sandy Spring shareholders will own 29% of the new entity, while Atlantic Union shareholders will hold 71%​.

This merger is not just about expansion—it’s about creating a premier banking institution with the capacity to serve businesses, individuals, and communities more effectively.

The Strategic Impact of the Merger

A Stronger Regional Banking Presence

The merger will establish the largest regional bank headquartered in the lower Mid-Atlantic. By combining the two institutions’ footprints, the new entity will be able to:

• Offer greater branch accessibility across Maryland, Virginia, and North Carolina.

• Compete with larger national banks while maintaining a community-focused approach.

• Improve operational efficiencies and increase customer engagement with digital banking enhancements.

Benefits for Customers

For customers, this merger translates to a more comprehensive and accessible banking experience. Here’s what they can expect:

• Expanded branch network: More locations for convenient banking.

• Improved digital services: Enhanced mobile banking apps, online services, and tech-driven financial solutions.

• Diverse financial products: Broader lending, investment, and wealth management services.

• Stronger community banking relationships: A continued commitment to personalized banking experiences.

Financial Strength and Shareholder Value

Atlantic Union expects this deal to boost profitability and enhance stock value. The exchange ratio of 0.900 shares of Atlantic Union stock per Sandy Spring share was structured to ensure fair value for all stakeholders​.

At the time of the merger announcement:

• The exchange ratio valued Sandy Spring shares at $34.93 each.

• By December 12, 2024, with Atlantic Union stock closing at $41.31, Sandy Spring’s share value in the deal had risen to $37.18​.

This upward trend signals strong investor confidence, further cementing the merger’s long-term benefits.

Challenges and Potential Risks

While the merger presents many advantages, it is not without challenges.

Integration Complexities

Merging two large banking operations involves:

• System consolidation: Ensuring seamless technology integration and minimal service disruptions.

• Cultural alignment: Uniting two corporate cultures under a single vision.

• Regulatory compliance: Meeting ongoing financial and legal obligations.

Market and Economic Factors

Uncertainty in the financial sector, including interest rate fluctuations and economic downturns, could affect:

• Loan demand and lending strategies.

• Stock market performance and investor sentiment.

• Customer trust and satisfaction levels.

Operational Risks

A merger of this scale requires careful risk management to address:

• Employee retention and workforce restructuring.

• Possible temporary disruptions in customer service.

• Increased competition from larger national banks.

Despite these challenges, both banks have emphasized a thorough transition plan to ensure stability and growth post-merger​.

What’s Next for Customers and Employees?

For Customers:

• No immediate changes to accounts, cards, or services.

• Improved digital banking and branch accessibility.

• More loan, mortgage, and investment opportunities.

For Employees:

• Greater career development opportunities in a larger organization.

• A stronger financial institution with more resources and innovation.

• Potential internal restructuring but a commitment to employee retention.

With a carefully planned transition, Atlantic Union and Sandy Spring aim to make the shift as smooth as possible for all stakeholders.

Final Thoughts: A Bold Move in Regional Banking

The merger between Atlantic Union Bankshares and Sandy Spring Bancorp is a defining moment for regional banking in the Mid-Atlantic. This strategic combination will create a more powerful, efficient, and customer-focused financial institution.

Key Takeaways:

• The merger is expected to finalize on April 1, 2025, with all approvals in place​.

• Customers will benefit from expanded services, improved technology, and greater convenience.

• Investors can anticipate stronger financial performance and increased shareholder value.

• Both institutions remain committed to serving communities and fostering economic growth.

As this merger unfolds, customers and investors alike should stay informed about the transition process, new opportunities, and long-term benefits.

Frequently Asked Questions

Will my current banking services change?

No immediate changes will occur. Both banks are ensuring a seamless transition for customers.

How does the merger affect Sandy Spring shareholders?

They will receive 0.900 shares of Atlantic Union stock per share of Sandy Spring stock​.

When will the merger be completed?

The merger is set to close on April 1, 2025​.

What benefits will this merger bring to local communities?

The newly merged bank plans to expand community banking programs and increase local investments.

Merger AUB SASR

Merger AUB SASR