08:26 AM EDT, 04/29/2024 (MT Newswires) -- (Updates with share price movements in headline and final paragraph).

UMB Financial ( UMBF ) has agreed to acquire Heartland Financial (HTLF) in an all-stock transaction valued at about $2 billion, the banks said Monday.

Under the terms of the agreement, approved by the boards of each company, Heartland stockholders will receive 0.55 shares of UMB stock for each share they own. Following the anticipated Q1 2025 closing, Heartland stockholders are expected to own 31% of the combined company. Five members of Heartland's board will join UMB's expanded 16-member board.

The merger will create a regional bank spanning 13 states with total assets of $64.5 billion, the companies said.

UMBF shares were down 8.6% while Heartland shares were up more than 15% in recent Monday premarket activity.

Price: 76.03, Change: -7.14, Percent Change: -8.58