Banking & Finance  April 30, 2024

UMB to acquire Heartland Financial in $2B deal

KANSAS CITY, Mo. & DENVER — UMB Financial Corp. (Nasdaq: UMBF) will acquire Denver-based Heartland Financial, USA Inc. (Nasdaq: HTLF) in a $2 billion transaction.

The all-cash deal is subject to regulatory approval and is expected to close in the first quarter of 2025.

UMB’s assets will grow to $64.5 billion with the purchase, with its retail deposit base almost doubling. The deal also will add 107 branches and 237 ATMs to UMB’s 90 branches and 238 ATMs.

HTLF operates in 11 states and does business as Citywide Banks, Minnesota Bank & Trust, Wisconsin Bank & Trust, Dubuque Bank & Trust, Illinois Bank & Trust, Bank of Blue Valley, Premier Valley Bank, Arizona Bank & Trust, New Mexico Bank & Trust and First Bank & Trust.

It recorded $19.4 billion in assets, $16.2 billion in total deposits and $12.1 billion in total loans as of March 31, 2024.

The merger will span 13 states, California, Minnesota, New Mexico, Iowa and Wisconsin to UMB’s existing eight-state footprint, which includes Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas.

Citywide operates branches in Arvada, Aurora, Boulder, Centennial, Conifer, Denver, Edwards, Erie, Evergreen, Golden, Lakewood, Westminster and Winter Park/Fraser.

In Colorado, Kansas City, Missouri-based UMB operates in Centennial, Colorado Springs and Denver.

“This is a historic and exciting milestone for our company,” UMB Financial chairman and CEO Mariner Kemper said in a prepared statement. “While we have maintained an outstanding pace of organic growth during the past decade, this compelling combination with HTLF marks a truly momentous expansion of all our core services in both existing and new markets. This synergy, along with a like-minded culture and customer approach, is an ideal fit for our business model, our credit and risk profiles, and our associates, customers and communities.”

“This acquisition further diversifies our business, adding more scale to our consumer and small business capabilities,” Kemper said. “It also significantly expands our market share in several existing markets and leverages our commercial banking expertise to HTLF customers and prospects in our newly acquired markets.”

Under terms of the merger agreement, HTLF stockholders will receive 0.55 shares of UMB common stock for each share of HTLF common stock. The per share consideration is valued at $45.74 per share based on UMB’s closing price of $83.17 on April 26, 2024. 

Post acquisition, former HTLF stockholders are expected to represent approximately 31% of the combined company. Five members of the HTLF board of directors will join the UMB board, which will be expanded to 16 members.

“HTLF’s merger with UMB represents our continued focus on ensuring we deliver the best products, services and expertise to our customers,” said Bruce K. Lee, HTLF president and CEO. “This is an excellent match for HTLF, and we’re truly excited for what this means for our employees, customers, stockholders and communities.”

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