Atlantic Union to buy Maryland’s Sandy Spring Bank for $1.6B

Atlantic Union Bank is expanding further into Northern Virginia and Maryland with the $1.6 billion purchase of Maryland’s Sandy Spring Bank, an acquisition announced Monday.

The two banks’ parent companies, Atlantic Union Bankshares and Sandy Spring Bancorp, have entered into a merger agreement that would create a combined bank with $39.2 billion in assets as of Sept. 30, they said in a news release.

Based in Olney, Maryland, Sandy Spring had $14.4 billion in assets, $11.7 billion in total deposits and $11.5 billion in total loans as of Sept. 30, and it has 53 branch offices in Maryland and Northern Virginia. Upon completion of the deal, Richmond-based Atlantic Union will have total deposits of $32 billion and gross loans of $29.8 billion, according to Monday’s statement.

Sandy Spring also has two wealth management subsidiaries, Rembert Pendleton Jackson and West Financial Services, that will be part of the acquisition, and will approximately double Atlantic Union’s wealth management business, increasing its assets under management by more than $6.5 billion.

“At our 2018 investor day, I noted that part of our long-term vision was to complete the ‘Golden Crescent’ from Baltimore through Washington, D.C., and Richmond to Hampton Roads, and recreate a banking franchise that had not existed since the 1990s,” John C. Asbury, Atlantic Union’s president and CEO, said in a statement. “With today’s announcement of our partnership with Sandy Spring, Atlantic Union will create a preeminent regional bank, with Virginia as its linchpin, that spans the lower mid-Atlantic into the Southeast and that is committed to the communities it serves.”

By deposit market share in the state as of June 30, Sandy Spring Bank is the largest regional bank in Maryland and the seventh largest in the state overall. By deposit market share in Virginia as of June 30, Atlantic Union Bank is Virginia’s largest regional bank and its fifth largest bank overall.

Under the terms of the merger agreement, each outstanding share of Sandy Spring common stock will be converted into the right to receive 0.9 shares of Atlantic Union common stock, a value of about $34.93 per Sandy Spring common share, based on Atlantic Union’s closing stock price on Oct. 18.

Both banks’ boards have approved the agreement, and the banks expect to complete the transaction by the end of the third quarter of 2025, they said in a statement.

Monday’s announcement follows Atlantic Union’s acquisition of Danville’s American National Bank and Trust, which was completed in April. The $507 million deal was announced in July 2023.

Atlantic Union has 129 branches throughout Virginia and in parts of North Carolina and Maryland, according to Monday’s announcement.

In terms of potential consolidation of Virginia branches, Asbury said during a virtual press conference: “Where we see overlap, we have identified potentially five locations in Northern Virginia that would be candidates for consolidation simply because of their very close proximity,” but said it would be premature to provide details on those locations.

Additionally, he said, “We would anticipate retaining 100% of all branch personnel. The branch network in the area is large enough to absorb them.”

Branches wouldn’t close until after systems are converted post-merger, which would likely be the first quarter of 2026, said Bill Cimino, senior vice president and director of investor relations for Atlantic Union.

The bank is also planning to open three branches — one in Baltimore, one in Prince George’s County, Maryland, and one in Prince William County — but does not yet have specifics as it needs to assess location options, Asbury said.

“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,” Daniel J. Schrider, Sandy Spring’s chair, president and CEO, said in a statement. “Sandy Spring Bank and Atlantic Union Bank share a people-first approach to doing business and serving our communities, and together we will add even greater value to the individuals, families and businesses we serve across our expanded footprint.”

Schrider and two other Sandy Spring board members will join Atlantic Union’s board upon closing of the transaction.