Bringing Back the "Great Virginia Bank"

John Asbury, who is set to make Atlantic Union Bank a major mid-Atlantic player with the pending purchase of Sandy Spring Bancorp, discusses how he made it all happen.

Hello Bank Slaters!

I am sending this newsletter from the American Bankers Association’s Annual Convention in NYC — a reminder that I will join a panel tomorrow to discuss the 2025 M&A Outlook.

I am also excited to announce that our first research paper is out! As many of you know, we asked bankers to discuss their 2025 budgeting expectations. We collected and analyzed the responses and made recommendations to help financial institutions make the most of next year.

Everyone who participated is set to get a copy — if you missed out we will still send the report to those who sign up for our premium subscription. Just click on the tab below to sign up.

Let’s talk about John Asbury, CEO of Atlantic Union Bank in Richmond, Va.

Asbury is set to be extremely busy in 2025. For starters, he will begin a one-year term as chairman of the American Bankers Association during this week’s convention.

Atlantic Union last week agreed to buy Sandy Spring Bancorp in Olney, Md., in a $1.6 billion deal expected to close in the third quarter of next year. Atlantic Union, which would grow to $39 billion of assets, raised $350 million to cover day-one marks and facilitate the sale of $2 billion of CRE after the deal closes.

The goal of selling the loans is to lower the combined company's ratio of CRE loans to total risk-based capital to 285% — below the 300% threshold that typically triggers more regulatory scrutiny. It would also reduce the loan-to-deposit ratio below 90%.

We caught up with Asbury to discuss the deal and his broader views of the banking industry. Here is an edited transcript of the conversation.