UMB gains approval for $2bn acquisition of Heartland Financial USA

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The acquisition is expected to increase UMB’s assets under management/administration by 31%. Credit: JHVEPhoto/Shutterstock.

UMB Financial has secured regulatory approvals for its $2bn all-stock deal for acquisition of Heartland Financial USA.

The two companies secured clearances for the deal from the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System.

The definitive merger agreement between the companies was signed in April 2024.

This deal is set to close on or around 31 January 2025, subject to standard closing conditions.

UMB, headquartered in Kansas City, Missouri, is engaged in providing a range of services including commercial banking, personal banking, and institutional banking, with branches across several US states.

Heartland Financial USA, based in Denver, Colorado, reported assets of $18.27bn as of 30 September 2024.

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The acquisition is expected to increase UMB’s assets under management/administration by 31% and nearly double its retail deposit base.

It will also see UMB’s network grow substantially, adding 107 branches and 237 ATMs to its existing 90 branches and 238 ATMs.

Under the agreed terms, HTLF stockholders will receive 0.55 shares of UMB common stock for each share of HTLF common stock.

This exchange ratio values HTLF shares at $45.74 based on UMB’s closing price of $83.17 on 26 April 2024.

UMB Financial chairman and CEO Mariner Kemper said: “Receiving regulatory approvals is another milestone in completing this historic acquisition.

“We remain extremely excited about this momentous expansion of our core services and capabilities, which will benefit both UMB and HTLF customers.

“As we’ve previously shared, HTLF’s like-minded culture and customer approach are an ideal fit for our business model, our credit and risk profiles, and our associates, customers and communities.”Following the transaction’s completion, former HTLF stockholders are expected to collectively represent approximately 31% of the combined company.

Additionally, five members of the HTLF Board of Directors will join the expanded 16-member UMB Board after the acquisition completion.