The Sandy Spring deal would mark Atlantic Union’s largest ever acquisition.
The pending marriage of Richmond’s Atlantic Union Bank and Maryland-based peer Sandy Spring Bank looks to have a clear path to the closing table.
The deal, which would create a $39 billion banking behemoth, received approval from shareholders of both companies at special shareholders meetings held Wednesday, they announced.
Those shareholder votes, along with recently received approvals from state and federal regulators, were the final hurdles needed for the banks to get the $1.6 billion stock-for-stock transaction to the finish line.
The combination is now expected to close on April 1, the companies said.
The resulting institution would combine Sandy Spring’s $14 billion in assets with AUB’s $25 billion. AUB also would gain its first major presence in Maryland and Washington, D.C., and an expanded presence in Northern Virginia, by taking on Sandy Spring’s 53 branches.
Those will add to AUB’s 129 branches spanning most of Virginia and parts of North Carolina.
A map showing the combined branch footprints of Atlantic Union and Sandy Spring. (Courtesy AUB)
The combined organization will be led by AUB’s chief executive John Asbury, said upon announcing the deal last year that it would complete AUB’s goal of covering the ‘Golden Crescent,’ the name of the stretch from the Greater Washington D.C. area, down through Richmond and into Hampton Roads.
Atlantic Union will be the surviving brand once the deal closes, marking an end to the Sandy Spring name that dates to the bank’s founding in 1868 by a group of Quakers in Maryland. The bank is headquartered today in Olney, Maryland. The combined banks will be headquartered from AUB’s base in the James Center in downtown Richmond.
Along with the branch network, Sandy Spring brings with it nearly $12 billion in deposits and $11 billion in loans. It also has wealth management subsidiaries Rembert Pendleton Jackson and West Financial Services that will nearly double AUB’s wealth management business by $6.5 billion in assets under management.
The combined bank will have $32 billion in deposits, $30 billion in loans and a $13 billion wealth management arm.
A condition of the deal includes AUB raising approximately $350 million in capital through a public offering of 9.85 million shares at $35.50 apiece. The proceeds of that raise will help bolster its capital base to offset $2 billion worth of Sandy Spring commercial real estate loans that would be sold off as part of the transaction.
The Sandy Spring deal marks AUB’s largest ever acquisition and its fifth acquisition in the last decade. Last year it acquired American National Bank, a $3 billion institution in Danville. Its other previous deals included taking on Northern Virginia’s Access National Bank, Christiansburg-based StellarOne Bank and Richmond-based Xenith Bank.
There’s still one other local bank merger still pending and expected to close this year. Midlothian-based Village Bank is set to be acquired by Hampton Roads-based TowneBank. Village said the deal, valued at $120 million, is expected to close prior to the end of the first quarter. It combined Village’s $750 million in assets with Towne’s $17 billion and gives Towne an extra nine branches in the Richmond region to go along with its nine existing local locations.
The Sandy Spring deal would mark Atlantic Union’s largest ever acquisition.
The pending marriage of Richmond’s Atlantic Union Bank and Maryland-based peer Sandy Spring Bank looks to have a clear path to the closing table.
The deal, which would create a $39 billion banking behemoth, received approval from shareholders of both companies at special shareholders meetings held Wednesday, they announced.
Those shareholder votes, along with recently received approvals from state and federal regulators, were the final hurdles needed for the banks to get the $1.6 billion stock-for-stock transaction to the finish line.
The combination is now expected to close on April 1, the companies said.
The resulting institution would combine Sandy Spring’s $14 billion in assets with AUB’s $25 billion. AUB also would gain its first major presence in Maryland and Washington, D.C., and an expanded presence in Northern Virginia, by taking on Sandy Spring’s 53 branches.
Those will add to AUB’s 129 branches spanning most of Virginia and parts of North Carolina.
A map showing the combined branch footprints of Atlantic Union and Sandy Spring. (Courtesy AUB)
The combined organization will be led by AUB’s chief executive John Asbury, said upon announcing the deal last year that it would complete AUB’s goal of covering the ‘Golden Crescent,’ the name of the stretch from the Greater Washington D.C. area, down through Richmond and into Hampton Roads.
Atlantic Union will be the surviving brand once the deal closes, marking an end to the Sandy Spring name that dates to the bank’s founding in 1868 by a group of Quakers in Maryland. The bank is headquartered today in Olney, Maryland. The combined banks will be headquartered from AUB’s base in the James Center in downtown Richmond.
Along with the branch network, Sandy Spring brings with it nearly $12 billion in deposits and $11 billion in loans. It also has wealth management subsidiaries Rembert Pendleton Jackson and West Financial Services that will nearly double AUB’s wealth management business by $6.5 billion in assets under management.
The combined bank will have $32 billion in deposits, $30 billion in loans and a $13 billion wealth management arm.
A condition of the deal includes AUB raising approximately $350 million in capital through a public offering of 9.85 million shares at $35.50 apiece. The proceeds of that raise will help bolster its capital base to offset $2 billion worth of Sandy Spring commercial real estate loans that would be sold off as part of the transaction.
The Sandy Spring deal marks AUB’s largest ever acquisition and its fifth acquisition in the last decade. Last year it acquired American National Bank, a $3 billion institution in Danville. Its other previous deals included taking on Northern Virginia’s Access National Bank, Christiansburg-based StellarOne Bank and Richmond-based Xenith Bank.
There’s still one other local bank merger still pending and expected to close this year. Midlothian-based Village Bank is set to be acquired by Hampton Roads-based TowneBank. Village said the deal, valued at $120 million, is expected to close prior to the end of the first quarter. It combined Village’s $750 million in assets with Towne’s $17 billion and gives Towne an extra nine branches in the Richmond region to go along with its nine existing local locations.