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RICHMOND - Atlantic Union Bankshares Corporation (NYSE: AUB) today announced the completion of its merger with Sandy Spring Bancorp, Inc., solidifying its position as the largest regional banking franchise headquartered in the lower Mid-Atlantic. The merger enhances Atlantic Union’s footprint in Virginia and Maryland. The bank has demonstrated strong financial performance, with revenue growing 14.48% to $767.33 million in the last twelve months. According to InvestingPro analysis, the company maintains a FAIR financial health score, with analysts expecting continued growth in both sales and net income this year.
The terms of the merger agreement stipulated that each share of Sandy Spring common stock was converted into 0.900 shares of Atlantic Union common stock. The transaction, based on Atlantic Union’s closing stock price of $31.14 on Monday, was valued at roughly $1.3 billion. Notably, Atlantic Union has maintained dividend payments for 32 consecutive years and raised them for 14 straight years, currently offering a 4.37% dividend yield.
John C. Asbury, President and CEO of Atlantic Union, expressed optimism about the merger. "By bringing together the number one regional bank in Virginia and the number one regional bank in Maryland, we’ve created something that’s never existed before," he said. Asbury anticipates that the merger will contribute to sustainable long-term shareholder value.
The merger agreement also led to the appointment of Mona Abutaleb Stephenson, Mark C. Micklem, and Daniel J. Schrider to the Boards of Directors of Atlantic Union and Atlantic Union Bank.
Following the merger, Atlantic Union’s pro forma total assets stood at $38.7 billion, with total deposits of $32.1 billion and total loans held for investment amounting to $30.0 billion as of December 31, 2024. Sandy Spring’s subsidiary bank, Sandy Spring Bank, was also merged into Atlantic Union Bank today.
Atlantic Union Bankshares Corporation offers a range of financial services, including equipment financing, brokerage services, and insurance products through its non-bank financial services affiliates.
This merger is expected to have a significant impact on the regional banking landscape, with Atlantic Union Bankshares Corporation aiming to leverage the combined strengths of both entities to enhance its market presence and financial performance. InvestingPro analysis indicates the stock is currently trading below its Fair Value, suggesting potential upside opportunity. For deeper insights into Atlantic Union’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, covering over 1,400 US stocks.
The information in this article is based on a press release statement.
In other recent news, Atlantic Union Bankshares has reported its Q3 2024 earnings, showcasing a mixed financial performance. The company’s earnings per share (EPS) exceeded expectations at $0.82, surpassing the forecasted $0.79, while revenue fell short at $218.4 million against a forecast of $222.37 million. Additionally, Atlantic Union Bankshares announced a strategic merger with Sandy Spring Bancorp, which is expected to enhance the company’s competitive positioning in the Mid-Atlantic region. Analysts from Raymond James and Keefe, Bruyette & Woods have adjusted their price targets for Atlantic Union Bankshares, with Raymond James lowering its target to $37 and Keefe reducing it to $44, reflecting recent performance and future growth prospects. Despite a weaker-than-expected fourth quarter, Raymond James maintained its Outperform rating, citing the bank’s strong franchise quality and long-term fundamentals. The anticipated merger with Summit Financial Group Inc. is expected to close earlier than planned, potentially boosting Atlantic Union’s earnings per share in the coming years. These developments indicate a cautious but optimistic outlook for Atlantic Union Bankshares amid ongoing economic uncertainties.
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