UMB Expands with Heartland Merger, Targets Central Valley
Deal News | Feb 04, 2025 | EIN
UMB Financial Corp., a 111-year-old bank from Kansas City, has completed a $2 billion merger with Heartland Financial USA, expanding its service territory from eight to thirteen states, including its entrance into California's Central Valley. The acquisition notably includes Fresno-based Premier Valley Bank, acquired by Heartland in 2015 for $95 million. Under the leadership of Mariner Kemper, the fifth-generation banker at UMB, this deal marks the largest acquisition in the bank's history. With this merger, UMB aims to double its retail operations and increase its wealth business by 30%. While transitioning, Heartland's institutions will maintain operations under their previous names until a full integration planned for late 2025.
Sectors
- Banking and Financial Services
- Mergers and Acquisitions
Geography
- United States – Both UMB Financial and Heartland Financial USA are based in the United States, with the merger expanding UMB's footprint into new states, particularly venturing into the Central Valley of California.
- California – The merger marks UMB's entry into California, specifically targeting growth opportunities within the Central Valley.
Industry
- Banking and Financial Services – The acquisition involves significant expansion and consolidation activities within the banking sector, indicating growth strategies focused on increasing market share and assets.
- Mergers and Acquisitions – This transaction is a prime example of strategic mergers and acquisitions within the financial industry, aimed at expanding UMB's geographic footprint and services.
Financials
- $2 billion – The total value of the merger acquisition of Heartland Financial USA by UMB Financial Corp.
- $68 billion – The resultant asset size of UMB Financial post-merger.
- $95 million – The acquisition cost of Premier Valley Bank by Heartland Financial in 2015.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| UMB Financial Corp. | Acquiring Company | Company | A Kansas City-based bank expanding its footprint through strategic acquisitions. |
| Heartland Financial USA | Target Company | Company | A Denver-based financial corporation acquired by UMB. |
| Premier Valley Bank | Subsidiary Bank | Company | A previously Heartland-owned bank, now part of UMB's expansion into the Central Valley. |
| Mariner Kemper | Chairman and CEO | Person | Fifth-generation banker leading UMB and overseeing its largest acquisition. |
| BankBeat.biz | Media Source | Company | Provided insights from an interview with Mariner Kemper regarding the merger. |