- Acquisition Announcement: UMB Financial Corporation (UMB) has entered into a definitive agreement to acquire Colorado-based bank holding company Heartland Financial USA (HTLF) in an all-stock transaction valued at around $2 billion.
- Terms of the Merger Agreement: HTLF shareholders will receive a fixed exchange ratio of 0.55 shares of UMB common stock for each share of HTLF common stock, valuing each share at $45.74 based on UMB’s closing price on April 26, 2024.
- Expected Timeline: The deal is anticipated to be finalized in the first quarter of 2025, subject to customary closing conditions, regulatory approvals, and approval by HTLF and UMB shareholders.
- Board Changes: Five members of the HTLF board of directors will join UMB’s board, expanding it to 16 members. Former HTLF stockholders will represent approximately 31% of the combined company.
- HTLF Profile: Founded in 1981, HTLF’s banks operate in the West, Southwest, and Midwest regions of the USA, managing approximately $19.4 billion in assets, $12.1 billion in total loans, and $16.2 billion in total deposits as of March 31, 2024.
- Impact on UMB: Upon completion of the acquisition, UMB Bank’s assets will increase to approximately $64.5 billion, positioning it among the top 5% of publicly traded banks in the US.
- Expansion Plans: UMB will expand its banking operations into new states such as Iowa, Wisconsin, California, Minnesota, and New Mexico, and add 107 branches and 237 ATMs to its current network of 90 branches and 238 ATMs.
- CEO Statement: Mariner Kemper, UMB’s chairman and CEO, anticipates the acquisition will create a “regional banking powerhouse with a 13-state branch presence.”
