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UMB Financial to acquire Heartland Financial

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Apr 29, 2024
Illustration of one piggy bank eating another piggy bank.

Illustration: Brendan Lynch/Axios

UMB Financial (Nasdaq: UMBF) has agreed to acquire Heartland Financial (HTLF) in an all-stock deal valued at $2 billion.

Why it matters: The largest regional bank deal this year (per Dealogic) comes as big bank competition has made survival harder for smaller players.

Context: Regional banks have suffered a crisis of confidence since the collapse of Silicon Valley Bank last year.

  • Denver-based Heartland was no exception, with shares down nearly 22% between SVB's March 2023 fall and mid-April 2024 — before news of a potential tie-up first broke.

Zoom in: Heartland has some $19.4 billion in assets, which will bring UMB's total to $64.5 billion.

  • The deal gives UMB a footprint in California, Minnesota, New Mexico and Wisconsin.
  • Heartland has some $16.2 billion in deposits.

The big picture: Bank mergers have remained muted in recent years, and the FDIC's recent proposal on bank M&A could stymie activity further.

Yes, but: The M&A backlog is growing for smaller banks.

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