UMB Financial Corporation Receives Regulatory Approval to Acquire Heartland Financial USA, Inc.
UMB Financial (UMBF) has received regulatory approvals from the OCC and Federal Reserve to acquire Heartland Financial USA (HTLF), following shareholder approvals from both companies. The acquisition is expected to close around January 31, 2025.
Post-acquisition, UMB will have approximately $66 billion in assets, positioning it in the top 4% of publicly traded U.S. banks. The transaction will increase UMB's private wealth management AUM/AUA by 31% and nearly double its retail deposit base, while expanding its presence from 8 to 13 states.
Five HTLF board members will join UMB's Board of Directors, expanding it to 16 members. UMB is finalizing a Community Benefits Agreement to detail support throughout its expanded footprint.
UMB Financial (UMBF) ha ricevuto approvazioni regolatorie dall'OCC e dalla Federal Reserve per acquisire Heartland Financial USA (HTLF), dopo aver ottenuto l'approvazione degli azionisti di entrambe le aziende. Si prevede che l'acquisizione si concluda intorno al 31 gennaio 2025.
Dopo l'acquisizione, UMB avrà circa 66 miliardi di dollari in attivi, posizionandosi nel top 4% delle banche statunitensi quotate in borsa. La transazione aumenterà il patrimonio gestito da UMB in gestione della ricchezza privata del 31% e quasi raddoppierà la sua base di depositi al dettaglio, espandendo la sua presenza da 8 a 13 stati.
Cinque membri del consiglio di HTLF entreranno a far parte del Consiglio di Amministrazione di UMB, espandendolo a 16 membri. UMB sta finalizzando un Accordo sui Benefici per la Comunità per dettagliare il supporto in tutto il suo nuovo territorio.
UMB Financial (UMBF) ha recibido aprobaciones regulatorias de la OCC y la Reserva Federal para adquirir Heartland Financial USA (HTLF), tras la aprobación de los accionistas de ambas empresas. Se espera que la adquisición se cierre alrededor del 31 de enero de 2025.
Después de la adquisición, UMB tendrá aproximadamente $66 mil millones en activos, posicionándose en el 4% superior de los bancos estadounidenses que cotizan en bolsa. La transacción aumentará el AUM/AUA de la gestión de riqueza privada de UMB en un 31% y casi duplicará su base de depósitos minoristas, ampliando su presencia de 8 a 13 estados.
Cinco miembros de la junta de HTLF se unirán a la Junta de Directores de UMB, aumentando su número a 16 miembros. UMB está finalizando un Acuerdo de Beneficios Comunitarios para detallar el apoyo a lo largo de su nueva área de influencia.
UMB Financial (UMBF)는 OCC와 연방준비제도로부터 Heartland Financial USA (HTLF) 인수를 위한 규제 승인을 받았으며, 두 회사의 주주 승인도 받았습니다. 이 인수 거래는 2025년 1월 31일 경에 마무리될 것으로 예상됩니다.
인수 후 UMB는 약 660억 달러의 자산을 보유하게 되어 미국 상장 은행들의 상위 4%로 자리 잡을 것입니다. 이 거래는 UMB의 개인 자산 관리 AUM/AUA를 31% 증가시키고 소매 예금 기반을 거의 두 배로 늘리며 주 수를 8개에서 13개로 확장할 것입니다.
HTLF 이사회에서 5명의 이사가 UMB의 이사회에 합류해 총 16명의 이사회가 됩니다. UMB는 확대된 지역 사회에 대한 지원을 상세히 명시하는 지역 사회 혜택 협정을 마무리하고 있습니다.
UMB Financial (UMBF) a reçu des approbations réglementaires de l'OCC et de la Réserve Fédérale pour acquérir Heartland Financial USA (HTLF), après les approbations des actionnaires des deux entreprises. L'acquisition devrait être finalisée autour du 31 janvier 2025.
Après l'acquisition, UMB disposera d'environ 66 milliards de dollars d'actifs, ce qui le positionnera dans le top 4% des banques américaines cotées en bourse. La transaction augmentera les actifs sous gestion (AUM/AUA) de la gestion de patrimoine privé de UMB de 31% et presque doublera sa base de dépôts de détail, tout en étendant sa présence de 8 à 13 États.
Cinq membres du conseil d'administration de HTLF rejoindront le conseil d'administration d'UMB, portant son effectif à 16 membres. UMB est en train de finaliser un Accord de Bénéfices Communautaires pour détailler le soutien dans son territoire élargi.
UMB Financial (UMBF) hat von der OCC und der Federal Reserve regulatorische Genehmigungen erhalten, um Heartland Financial USA (HTLF) zu übernehmen, nachdem die Aktionäre beider Unternehmen zugestimmt haben. Der Abschluss der Übernahme wird für etwa den 31. Januar 2025 erwartet.
Nach der Übernahme wird UMB über etwa 66 Milliarden Dollar an Vermögenswerten verfügen und sich damit in die oberen 4% der börsennotierten US-Banken positionieren. Die Transaktion wird das verwaltete Vermögen (AUM/AUA) von UMB im Bereich der privaten Vermögensverwaltung um 31% erhöhen und die Einzelhandels-Einlagenbasis fast verdoppeln, während die Präsenz von 8 auf 13 Bundesstaaten ausgeweitet wird.
Fünf Vorstandsmitglieder von HTLF werden dem Vorstand von UMB beitreten, wodurch dieser auf 16 Mitglieder erweitert wird. UMB finalisiert derzeit eine Vereinbarung über Gemeinschaftsleistungen, um die Unterstützung in seinem erweiterten Einflussbereich zu konkretisieren.
- Acquisition positions UMB in top 4% of U.S. public banks with $66B in assets
- 31% increase in private wealth management AUM/AUA
- Retail deposit base nearly doubles
- Geographic expansion from 8 to 13 states
- Regulatory and shareholder approvals secured
- None.
Insights
The regulatory approval for UMB Financial's acquisition of Heartland Financial USA represents a transformative deal that will create a
The geographic expansion from 8 to 13 states creates a more diversified footprint, reducing regional economic risk exposure. The addition of five HTLF board members brings valuable expertise and ensures continuity in governance. The cultural alignment and similar credit risk profiles suggest smoother post-merger integration, typically a critical success factor in bank mergers.
The merger's operational implications are substantial. The combined entity's enhanced scale will likely result in significant cost synergies through technology integration, operational streamlining and improved efficiency ratios. The complementary business models - UMB's strong commercial banking and HTLF's robust retail presence - create a more balanced revenue mix.
The pending Community Benefits Agreement signals strong regulatory compliance and community commitment, important for maintaining stakeholder support and minimizing integration risks. The transaction timing (expected close by January 31, 2025) allows for adequate preparation for systems integration and customer transition, reducing operational disruption risks.
This consolidation reflects the broader banking industry trend toward scale-driven efficiencies. The combined entity's increased market presence and expanded product capabilities position it well against regional competitors. The merger particularly strengthens UMB's wealth management segment, a high-margin business line with strong growth potential.
The transaction's strategic rationale is compelling - it provides immediate scale benefits, geographic diversification and enhanced competitive positioning in key markets. For investors, the deal offers exposure to a larger, more diversified banking franchise with improved earnings potential and risk-adjusted returns.
UMB will have approximately
“Receiving regulatory approvals is another milestone in completing this historic acquisition,” said Mariner Kemper, chairman and chief executive officer of UMB Financial Corporation. “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.”
The acquisition is expected to close on or around Jan. 31, 2025.
“We’re pleased this step in the process has been completed,” said Bruce K. Lee, president and chief executive officer of HTLF. “Our complementary strengths ensure we’ll continue delivering the best products, services and expertise to our customers.”
Upon closing, UMB will have approximately
UMB is deeply invested in the communities in which it does business, providing support through products, services, and investments as well as corporate and associate giving. UMB is committed to being a strong financial steward and is finalizing its Community Benefits Agreement, which will detail how it will provide support throughout its newly expanded footprint. Specific details will be shared upon close or when the plan is finalized.
Finally, five HTLF board members will join the UMB Financial Corporation Board of Directors after final approval by the UMBF Board at acquisition close: John Schmidt, Bradley (Brad)
“We’re excited to add these extremely talented individuals to our Board and look forward to working with them in 2025 and beyond,” Kemper said.
John Schmidt has served as the independent Chairman of the HTLF Board since March 15, 2022. He has been the senior vice president and chief financial officer (CFO) of A.Y. McDonald Industries since 2013 and was named corporate secretary in 2014.
Brad
Jenny
Margaret Lazo is a senior operating consultant at Cerberus Capital Management, a global private equity firm, where she is engaged in human capital initiatives across its portfolio companies.
Susan Murphy has served as the chairperson of the HTLF Audit Committee since April 5, 2022. She has been a Principal at The Grace Alliance, LLC in
The transaction closure is still subject to satisfaction or waiver of the remaining customary closing conditions.
About UMB:
UMB Financial Corporation (Nasdaq: UMBF) is a financial services company headquartered in
About HTLF
Heartland Financial USA, Inc., is a
Cautionary Note Regarding Forward-Looking Statements
This joint press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder, which statements involve inherent risks and uncertainties. Any statements about UMB’s, HTLF’s or the combined company’s plans, objectives, expectations, strategies, beliefs, or future performance or events constitute forward-looking statements. Such statements are generally identified as those that include words or phrases such as “believes,” “expects,” “anticipates,” “plans,” “trend,” “objective,” “continue,” or similar expressions or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “may,” or similar expressions. Forward-looking statements involve known and unknown risks, uncertainties, assumptions, estimates, and other important factors that change over time and could cause actual results to differ materially from any results, performance, or events expressed or implied by such forward-looking statements. Such forward-looking statements include but are not limited to statements about the benefits of the previously announced business combination transaction between UMB and HTLF (the “Transaction”), including future financial and operating results, the combined company’s plans, objectives, expectations and intentions, and other statements that are not historical facts.
These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected. In addition to factors previously disclosed in UMB’s and HTLF’s reports filed with the United States Securities and Exchange Commission (the “SEC”), the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the occurrence of any event, change, or other circumstance that could give rise to the right of one or both of the parties to terminate the definitive merger agreement between UMB and HTLF; the outcome of any legal proceedings that may be instituted against UMB or HTLF; the possibility that the Transaction does not close when expected or at all because the remaining conditions to closing are not satisfied on a timely basis or at all; the risk that the benefits from the Transaction may not be fully realized or may take longer to realize than expected, including as a result of changes in, or problems arising from, general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which UMB and HTLF operate; the ability to promptly and effectively integrate the businesses of UMB and HTLF; the possibility that the Transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; reputational risk and potential adverse reactions of UMB’s or HTLF’s customers, employees or other business partners, including those resulting from the announcement or completion of the Transaction; the dilution caused by UMB’s issuance of additional shares of its capital stock in connection with the Transaction; and the diversion of management’s attention and time from ongoing business operations and opportunities on merger-related matters.
These factors are not necessarily all of the factors that could cause UMB’s, HTLF’s or the combined company’s actual results, performance, or achievements to differ materially from those expressed in or implied by any of the forward-looking statements. Other factors, including unknown or unpredictable factors, also could harm UMB’s, HTLF’s or the combined company’s results.
All forward-looking statements attributable to UMB, HTLF, or the combined company, or persons acting on UMB’s or HTLF’s behalf, are expressly qualified in their entirety by the cautionary statements set forth above. Forward-looking statements speak only as of the date they are made and UMB and HTLF do not undertake or assume any obligation to update publicly any of these statements to reflect actual results, new information or future events, changes in assumptions, or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If UMB or HTLF update one or more forward-looking statements, no inference should be drawn that UMB or HTLF will make additional updates with respect to those or other forward-looking statements. Further information regarding UMB, HTLF and factors which could affect the forward-looking statements contained herein can be found in UMB’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (and which is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0000101382/000095017024018456/umbf-20231231.htm) and its subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and its other filings with the SEC, in HTLF’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (and which is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/920112/000092011224000026/htlf-20231231.htm), and its subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and its other filings with the SEC, and the risks described in UMB’s definitive joint proxy statement/prospectus related to the Transaction, which was filed with the SEC on July 5, 2024 (and which is available at https://www.sec.gov/Archives/edgar/data/101382/000119312524175612/d771152d424b3.htm).
View source version on businesswire.com: https://www.businesswire.com/news/home/20250110166743/en/
UMB Media Contact:
Stephanie Hague
Stephanie.Hague@umb.com
816.729.1027
HTLF Media Contact: Ryan Lund
rlund@htlf.com
952.746.0439
Source: UMB Financial Corporation
FAQ
When will UMB Financial (UMBF) complete the acquisition of Heartland Financial?
What will be UMB Financial's (UMBF) total assets after acquiring Heartland Financial?
How many states will UMB Financial (UMBF) operate in after the Heartland acquisition?
How will the Heartland acquisition affect UMB Financial's (UMBF) wealth management business?
How many HTLF board members will join UMB Financial's (UMBF) board after the acquisition?
