UMB Bank parent pens acquisition

Kansas City-based UMB Financial Corp. (Nasdaq: UMBF), the parent company of UMB Bank, has penned a deal to buy Denver-based Heartland Financial USA Inc. (Nasdaq: HTLF).

The all-stock transaction is valued at $2 billion and is expected to be completed in first-quarter 2025, according to a news release. Bloomberg, which cited sources familiar with the matter, reported on the deal prior to the announcement.

"This is a historic and exciting milestone for our company,” said Mariner Kemper, UMB Financial Corp. chair and CEO, in the release. “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."

The transaction would be UMB's largest in its 111-year history and would result in the company having $64.5 billion in assets. The deal also would add 107 branches and 237 ATMs to UMB’s 90 branches and 238 ATMs, officials say.

Operating in 11 states, HTLF does business as Minnesota Bank & Trust, Wisconsin Bank & Trust, Dubuque Bank & Trust, Illinois Bank & Trust, Bank of Blue Valley, Citywide Banks, Premier Valley Bank, Arizona Bank & Trust, New Mexico Bank & Trust and First Bank & Trust, according to the release. The company has 1,900 employees, compared with 3,600 at UMB.

UMB Financial this morning also reported its first-quarter financial results. The company reported quarterly net income of $110.3 million, compared with $92.4 million a year earlier, according to a separate news release.

UMBF shares were trading at $79.60 as of 10:55 a.m., compared with a 52-week range of $50.68 to $87.36 per share.