Fed approves Atlantic Union-Sandy Spring bank acquisition

Richmond-based Atlantic Union Bank is one step closer to completing its $1.6 billion purchase of Maryland’s Sandy Spring Bank.

The Federal Reserve Bank of Richmond, acting on delegated authority from the Board of Governors of the Federal Reserve System, has approved the merger, the parent companies of the two banks announced Tuesday.

Atlantic Union and Sandy Spring announced Oct. 21, 2024, that their parent companies had entered into a definitive merger agreement with an all-stock transaction.

The mergers remain subject to the approval of the Virginia Bureau of Financial Institutions, the Maryland Office of Financial Regulation, the shareholders of Atlantic Union and the stockholders of Sandy Spring, as well as other closing conditions. The transaction is expected to be completed by the end of the third quarter in 2025, the banks said at the time of the deal’s announcement.

Special meetings of Atlantic Union’s shareholders and Sandy Spring’s stockholders are scheduled Feb. 5.

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.

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, 2024. It has 53 branch offices in Maryland and Northern Virginia.

Atlantic Union Bank had $24.8 billion in assets, $20.3 billion in total deposits and $18 billion in total loans, as of Sept. 30, 2024. It has 129 branches throughout Virginia and in portions of Maryland and North Carolina.

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.

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 the October announcement.

Atlantic Union Bankshares will release fourth quarter and full year 2024 financial results Jan. 23.

Monday’s announcement follows Atlantic Union’s acquisition of Danville’s American National Bank and Trust, which was completed in April 2024.

Daniel J. Schrider, Sandy Spring’s chair, president and CEO, and two other Sandy Spring board members will join Atlantic Union’s board upon closing of the transaction.