UMB Financial Acquires Heartland Financial in $2B Deal

UMB Financial Corporation and Heartland Financial, USA Inc. have announced a definitive merger agreement under which UMB will acquire Heartland Financial in an all-stock transaction valued at approximately $2.0 billion. This will be the largest acquisition in UMB's history and will result in a significant increase in total assets by more than 40%.

As of March 31, 2024, Heartland Financial had $19.4 billion in assets, $16.2 billion in total deposits, and $12.1 billion in total loans. Following the merger, UMB's total assets will increase to $64.5 billion, placing it in the top 5% of publicly traded banks in the U.S. The transaction will also increase UMB’s private wealth management’s assets under management (AUM) and assets under administration (AUA) by 31% and nearly double its retail deposit base.

Additionally, the merger will add 107 branches and 237 ATMs to UMB’s network, expanding the reach for both companies’ customers. This will result in a 13-state branch footprint, adding California, Minnesota, New Mexico, Iowa, and Wisconsin to UMB’s existing eight-state footprint.

Under the terms of the merger agreement, Heartland Financial stockholders will receive a fixed exchange ratio of 0.55 shares of UMB common stock for each share of Heartland Financial common stock. Based on UMB’s closing price of $83.17 on April 26, 2024, this per-share consideration is valued at $45.74.

The transaction is expected to close in the first quarter of 2025, subject to customary closing conditions, including regulatory approvals and approval by UMB shareholders and Heartland Financial stockholders.

UMB Financial Corporation Chairman and CEO, Mariner Kemper, emphasized that the acquisition will significantly expand UMB’s market share in several existing markets and leverage its commercial banking expertise to Heartland Financial customers and prospects in the newly acquired markets.

The transaction also demonstrates UMB's commitment to being a strong financial steward in the communities in which it does business, providing support through products, services, and investments, as well as corporate and associate giving.

The press release does not provide any specific financial metrics for comparison with the previous period. As a result of these announcements, the company's shares have moved 16.8% on the market, and are now trading at a price of $41.71. If you want to know more, read the company's complete 8-K report here.

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