2024 Banking News: AUB and TowneBank’s Major Merger Actions

In 2024, Atlantic Union Bank made some significant moves in the banking sector, completing one acquisition and announcing another. This year was all about mergers and acquisitions, no matter the size. It all started with Virginia Credit Union deciding to merge with Roanoke-based Member One Federal Credit Union, making them the third-largest credit union in Virginia with assets of almost $7 billion, 500,000 members, 37 branches, and 1,100 employees.

Following this, Atlantic Union Bank, the biggest locally based bank in the area, wrapped up its $507 million acquisition of American National Bank in Danville. Soon after, TowneBank from Hampton Roads made headlines by agreeing to acquire Midlothian-based Village Bank for $120 million, resulting in a $62 million return for the Village Bank’s investor.

Later in the year, First Bank, based in Strasburg, Virginia, sealed the deal by acquiring Touchstone Bank, boosting First Bank’s assets to $2.1 billion. Then came the biggest acquisition of the year – Atlantic Union Bank announced its pending acquisition of Sandy Spring Bank in Northern Virginia. This merger is set to create a $39 billion banking entity and solidify AUB’s position as the largest regional bank in Virginia, with AUB gaining its first major presence in Maryland and Washington, D.C.

In the midst of all the acquisitions, there were other noteworthy events in the local banking sector, such as VACU transitioning into a federal credit union, Blue Ridge Bank securing $150 million in capital, and a Primis Bank commercial loan officer being sentenced to prison for a lending scheme.

The year also witnessed several branch movements, with banks like New Horizon Bank expanding beyond Powhatan and Southern Bank opening its first branch in the local market. Looking ahead to 2025, the industry will be watching as Atlantic Union and TowneBank close their Sandy Spring and Village Bank acquisitions respectively. The question on everyone’s mind is whether there will be more consolidation in the market and who the next likely targets will be.