UMB Financial to Acquire Heartland Financial USA in $2 Billion Deal

UMB Financial Corporation, the parent company of UMB Bank, based in Missouri, USA, has entered into a definitive agreement to acquire Colorado-based bank holding company Heartland Financial USA (HTLF) in a $2 billion all-stock transaction.

UMB Financial Corporation, the parent company of UMB Bank, has recently announced its plans to acquire Colorado-based bank holding company Heartland Financial USA in a deal valued at approximately $2 billion. This all-stock transaction will see HTLF shareholders receiving 0.55 shares of UMB common stock for each share of HTLF common stock they own, equating to a per-share value of $45.74 based on UMB’s closing price on April 26, 2024.

The merger is expected to be finalized in the first quarter of 2025, pending regulatory approvals and approval by both HTLF and UMB shareholders. As part of the agreement, five members of the HTLF board of directors will join UMB’s board, expanding it to 16 members. Following the completion of the deal, former HTLF stockholders are projected to represent approximately 31% of the combined company.

Heartland Financial USA, established in 1981, operates banks in the West, Southwest, and Midwest regions of the United States, managing assets totaling $19.4 billion, $12.1 billion in total loans, and $16.2 billion in total deposits as of March 31, 2024. With the acquisition, UMB Bank’s assets will increase to around $64.5 billion, placing it among the top 5% of publicly traded banks in the US. UMB’s chairman and CEO, Mariner Kemper, believes that the merger will establish a "regional banking powerhouse" with a presence in 13 states.

The acquisition will enable UMB to expand its banking operations into new states such as Iowa, Wisconsin, California, Minnesota, and New Mexico, while also adding 107 branches and 237 ATMs to its existing network of 90 branches and 238 ATMs.

The acquisition of Heartland Financial USA by UMB Financial Corporation marks a significant milestone in the banking industry, creating a stronger regional player with an expanded presence across multiple states.