Bank consolidation heats up again

Bank consolidations related to equipment and commercial finance are heating up as regional banks continue to navigate the high interest rate environment. 

Kansas City, Mo.-based regional bank UMB Financial said today it would buy Denver-based Heartland Financial USA for nearly $2 billion in an all-stock transaction, according to a UMB press release. 

The acquisition would expand UMB’s geographic footprint to California, Iowa, Minnesota, New Mexico and Wisconsin. UMB already operates in Arizona, Colorado, Illinois, Kansas, Missouri, Nebraska, Oklahoma and Texas. 

Shareholders will receive 0.55 shares of UMB common stock for each share of Heartland stock, based on UMB’s closing price of $83.17 on April 26, according to the release. The transaction is expected to close in the first quarter of 2025. 

“This acquisition further diversifies our business, adding more scale to our consumer and small business capabilities,” UMB Chairman and Chief Executive Mariner Kemper said in the release. “It also significantly expands our market share in several existing markets and leverages our commercial banking expertise to HTLF customers and prospects in our newly acquired markets.” 

The deal represents the largest U.S. bank merger and acquisition announced since the start of 2023, according to S&P Global Market Intelligence data.  April also had the fourth-largest acquisition when Rosemont, Ill.-based Wintrust Financial announced the acquisition of Michigan-based Macatawa Bank on April 15.

Fulton Bank acquires Republic First Bank

Lancaster, Pa.-based Fulton Bank was appointed by the FDIC as the receiver of Republic First Bank after the Philadelphia-based institution was closed on April 26 by the Pennsylvania Department of Banking and Securities, according to an FDIC release.  

FDIC previously assumed receivership of New York-based Signature Bank in March 2023, before its sale to New York Community Bank, as part of last year’s closure of several regional banks. 

Republic’s 32 branches in New Jersey, Pennsylvania and New York reopened that day as branches of Fulton Bank, according to the FDIC release. 

“With this transaction, we are excited to double our presence across the region,” Fulton Chairman and CEO Curt Myers said in a release. “We look forward to welcoming Republic bank’s team members and customers to Fulton and providing our comprehensive set of consumer, commercial and wealth advisory products and services to even more customers.” 

The acquisition came as Fulton Bank began seeing commercial loan growth, Myers said during the company’s April 17 earnings call. 

“The biggest thing on loan growth is our pipeline — commercial loans pipeline is up [quarter over quarter] and up year over year,” he said. “What we’re seeing is what we call the pull-through rate on that pipeline continues to be challenged.” 

Registration is now open for Equipment Finance Connect, the nation’s only dealer-centric equipment lending and leasing event, which will take place May 5-7 in Nashville, Tenn. Learn about the event and free dealer registration at EquipmentFinanceConnect.com