In a groundbreaking move, UMB Financial Corporation has agreed to acquire Heartland Financial USA, Inc. in an all-stock transaction estimated at approximately $2 billion, marked as the largest acquisition in UMB’s history. The merger is projected to boost UMB’s total assets by over 40%, culminating in an asset base of $64.5 billion, thus positioning it among the top 5% of publicly traded banks in the United States. With Hartland Financial’s assets valued at $19.4 billion, including $16.2 billion in deposits and $12.1 billion in loans as of March 2024, this acquisition notably expands UMB’s geographical reach, adding a further five states to its existing presence across eight states. Mariner Kemper, Chairman and CEO of UMB, emphasized the significant growth and synergy opportunities, particularly in core services that the acquisition affords, including nearly doubling UMB’s retail deposit base and adding substantial resources to its private wealth management and commercial banking capacities. Following merger completion, stockholders of Heartland Financial will own roughly 31% of the combined entity, and five members from their board will transition to the UMB board, which will expand to 16 members. The finalization of the acquisition, however, remains subject to standard closing conditions, including regulatory approval and consent from shareholders of both institutions, and is projected to close in the first quarter of 2025.
Banking – Commercial and Retail, Financial Services, Mergers and Acquisitions,United States
https://www.globenewswire.com/news-release/2024/04/29/2871140/10172/en/UMB-Announces-Agreement-to-Acquire-Heartland-Financial.html