UMB Financial Corporation (Nasdaq: UMBF) and Heartland Financial USA, Inc. (Nasdaq: HTLF) have announced that they have received the necessary regulatory approvals to complete their previously announced acquisition of HTLF. The approvals, granted by the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System, come after shareholder approvals from both companies. This marks a significant milestone in the process of finalizing the historic transaction.
“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 January 31, 2025, once all remaining customary closing conditions are satisfied or waived.
“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.”
Strategic Benefits of the Acquisition
This acquisition brings together two highly complementary organizations. Upon closing, UMB Financial Corporation will see its total assets grow to approximately $66 billion (based on assets as of September 30, 2024). This will place UMB among the top 4% of the 599 publicly traded banks in the United States, significantly strengthening its position in the financial services industry.
The transaction will enhance UMB’s private wealth management business, increasing its assets under management (AUM) and assets under administration (AUA) by 31%. The acquisition will also nearly double UMB’s retail deposit base, reinforcing its market position and expanding its customer base. The merger will also enable UMB to broaden its geographic presence from eight states to 13, facilitating deeper engagement in key markets across the United States.
“This acquisition is a critical step in the growth and diversification of UMB, positioning us to provide even greater value to our clients and expand our footprint across the country,” Kemper continued. “The combined entity will offer a broader range of products and services, benefiting from our complementary strengths. This expansion of our geographic reach and service capabilities will enable us to deliver enhanced value to our customers, communities, and shareholders.”
UMB Financial Corporation has a long-standing commitment to being a responsible and impactful corporate entity. The company has invested heavily in the communities it serves through a variety of channels, including products, services, corporate giving, and associate philanthropy. The company also works with local partners to drive economic development and support communities in need. As part of the acquisition, UMB is finalizing a Community Benefits Agreement, which will outline the company’s commitment to supporting its expanded footprint and ensuring that its presence benefits local communities. The details of this plan will be made available once the acquisition is completed or when the final plan is fully developed.
Board Composition Changes
Following the completion of the acquisition, five members from HTLF’s Board of Directors will join the UMB Financial Corporation Board. The new members will bring valuable perspectives and experience to UMB’s leadership team. The five new board members will be John Schmidt, Bradley (Brad) Henderson, Jennifer (Jenny) Hopkins, Margaret Lazo, and Susan Murphy. Their addition will expand the UMB Financial Corporation Board to 16 members, ensuring a diversity of experience and expertise to guide the company’s growth.
“We’re excited to add these extremely talented individuals to our Board and look forward to working with them in 2025 and beyond,” said Kemper. “Each of these leaders brings a wealth of experience in business, finance, and strategy, which will be invaluable as we continue to build a leading financial institution.”
Profiles of New Board Members
- John Schmidt has been the independent Chairman of the HTLF Board since March 2022. He has an extensive background in financial management, having served as the senior vice president and chief financial officer (CFO) of A.Y. McDonald Industries since 2013. He was named corporate secretary in 2014.
- Brad Henderson is the chief executive officer of P33, a nonprofit organization focused on driving Chicago’s leadership in global technology. He has been with the organization since 2019 and has been instrumental in shaping the region’s tech ecosystem.
- Jenny Hopkins has been a managing partner at Crescendo Capital, a private investment firm that supports early-stage companies, since 2007. She has extensive experience in venture capital and corporate strategy.
- Margaret Lazo is a senior operating consultant at Cerberus Capital Management, where she focuses on human capital initiatives across the firm’s portfolio companies. She brings a wealth of experience in operations and strategy within the private equity sector.
- Susan Murphy has served as the chairperson of the HTLF Audit Committee since April 2022. She is also a Principal at The Grace Alliance, LLC, a Denver-based firm that helps individuals and families develop and maintain financial strategies.
Community Commitment and Next Steps
UMB Financial Corporation’s focus on community engagement and corporate responsibility will be central to its strategy as the merger moves forward. The company’s commitment to providing access to financial services and driving economic development in the communities it serves will be reflected in the upcoming Community Benefits Agreement. This agreement will be finalized and publicly disclosed following the completion of the acquisition.
UMB’s continued dedication to supporting its customers and communities is evident in its efforts to expand its product and service offerings. By enhancing its wealth management capabilities, strengthening its retail banking network, and broadening its regional reach, UMB is positioning itself to create long-term value for its stakeholders.
As the closing date of the acquisition draws near, UMB is also focusing on integration efforts to ensure a smooth transition for both customers and employees. The company remains committed to maintaining the high level of service and support that its clients have come to expect, while leveraging the combined strengths of UMB and HTLF to build a stronger, more competitive organization in the financial services industry.
In conclusion, the regulatory approval of the acquisition marks a significant step toward the realization of UMB Financial Corporation’s strategic vision. With enhanced scale, capabilities, and geographic reach, UMB is well-positioned to continue its growth and leadership in the financial sector. The company’s commitment to its communities, customers, and employees will remain at the heart of its efforts as it integrates HTLF and delivers on its promise to create lasting value for all stakeholders.
About UMB:
UMB Financial Corporation (Nasdaq: UMBF) is a financial services company headquartered in Kansas City, Missouri. UMB offers commercial banking, which includes comprehensive deposit, lending and investment services, personal banking, which includes wealth management and financial planning services, and institutional banking, which includes asset servicing, corporate trust solutions, investment banking, and healthcare services. UMB operates branches throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas. As the company’s reach continues to grow, it also serves business clients nationwide and institutional clients in several countries. For more information, visit UMB.com, UMB Blog, UMB Facebook and UMB LinkedIn.
About HTLF
Heartland Financial USA, Inc., is a Denver, Colorado-based bank holding company operating under the brand name HTLF, with assets of $18.27 billion as of September 30, 2024. HTLF’s banks serve customers in the West, Southwest and Midwest regions. HTLF is committed to serving the banking needs of privately owned businesses, their owners, executives and employees. Our core commercial business is supported by a strong retail banking operation, in addition to a diversified line of financial services including treasury management, wealth management and investments. Additional information is available at www.htlf.com.
