American National Bankshares Inc. (Nasdaq: AMNB) experienced a remarkable surge in premarket trading, witnessing its shares climb to $38.98 from the previous day’s closing price of $38.35, representing a significant increase of 21.36%, equivalent to $6.75 per share.
This surge was triggered by a definitive merger agreement between Atlantic Union Bankshares (NYSE: AUB) and American National (AMNB).
The merger aims to bolster Atlantic Union’s position as the leading regional bank in Virginia, particularly in Southwest and Southside Virginia.
By combining forces, these two entities will form a powerful financial institution with substantial assets.
As of June 30, 2023, the combined company’s expected total assets will amount to $23.7 billion, total deposits of $19.1 billion, and gross loans of $17.3 billion.
With a rich history spanning 114 years as a top-tier community bank, American National brings in exceptional core deposits and outstanding asset quality, adding significant value to the merger.
The unified company’s goal is to enhance customer convenience while posing as a formidable competitor to national, super-regional, and smaller community banks, thereby unlocking greater value for all stakeholders of American National.
Moreover, the merger empowers AMNB to meet evolving customer banking needs through advanced technology and resources while providing expanded opportunities for its employees.
The success of this alliance lies in the compatibility of the two banks’ cultures, setting a solid foundation for their growth and adaptability to the ever-changing banking industry landscape.
According to the merger agreement, each outstanding share of AMNB common stock will be converted into 1.35 shares of AUB common stock, valuing the transaction at approximately $416.8 million, or around $39.23 per share, based on Atlantic Union’s ten-day weighted average closing stock price ending on July 24, 2023.
To ensure a seamless integration, two members of the American National Board of Directors, Nancy Howell Agee and Joel R. Shepherd, will join the Atlantic Union Board of Directors.
Additionally, Haley will play a crucial role in the integration process and provide guidance on the combined bank’s regional community banking model in American National’s existing markets.
Furthermore, Haley will serve as the bank’s representative to two Danville-based charitable trusts.
The merger between Atlantic Union and American National (AMNB) holds immense potential, as both institutions combine their strengths to create a more robust and competitive financial entity.
This deal promises enhanced value for AMNB customers, employees, and stakeholders, cementing their position in Virginia’s dynamic banking landscape and beyond.
