Atlantic Union Bankshares has entered into a transformative agreement to acquire Sandy Spring Bancorp in an all-stock transaction valued at approximately $1.6 billion, forging a path towards becoming the largest regional bank based in the lower Mid-Atlantic. This acquisition signifies a strategic expansion aimed at enhancing the market presence and operational capabilities of both institutions. Under the agreement, shareholders of Maryland-based Sandy Spring Bancorp will be entitled to receive 0.9 shares of Virginia-based Atlantic Union Bankshares for each share they hold.
This transaction details a valuation of $34.93 per share for Sandy Spring, referencing Atlantic Union's closing stock price from the previous Friday. In the latest trading session, Sandy Spring's shares experienced a slight decline of 1.6%, while Atlantic Union saw a more significant drop of 5.3%. Daniel Schrider, the Chief Executive of Sandy Spring Bank, expressed confidence in the merger, stating, "Our partnership with Atlantic Union is the right long-term decision for our shareholders, clients and employees.
This combination will deliver enhanced scale, diversity in the market and capabilities for our clients, and it will provide greater opportunities for our employees to grow within a larger organization." This strategic acquisition is subject to regulatory approvals and the endorsement of stockholders from both banking institutions, with expectations for completion by the end of the third quarter of 2025.
After the merger, three members of Sandy Spring's board, including Schrider, will be inducted into Atlantic Union's board of directors. The newly formed entity is set to boast a pro-forma total asset portfolio of $39.2 billion, alongside $32 billion in deposits and $29.8 billion in gross loans, according to financial metrics as of September 30.
Following this merger, Atlantic Union anticipates a significant escalation in its wealth management operations, potentially doubling its current business size, and enhancing its regional foothold with the addition of 53 branches. Ron Tillett, the Chairman of Atlantic Union, commented, "We believe that the combination of our two companies creates a uniquely valuable franchise that is able to better serve our customers as well as our communities, while creating long-term shareholder value." In a separate financial report, Atlantic Union's parent company disclosed third-quarter adjusted earnings of $0.83 per share, a modest increase from last year’s $0.80.
The overall revenue, calculated by aggregating net interest income and non-interest income, totaled $217.2 million, an increment from $179 million recorded in the same quarter of 2023. Additionally, the bank has initiated a common stock offering of 9.86 million shares priced at $35.50 each, equating to a total of $350 million, with underwriters holding an option to acquire an additional 1.48 million shares. In contrast, Sandy Spring reported a decline in core earnings to $0.40 per share from $0.62 year-on-year, with revenue slightly decreasing to $101.1 million from $102.5 million during the same period.
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