UMBF - UMB Financial: Strong Q1 And Heartland Deal Make Shares Attractive
2024-04-30 16:19:58 ET
Summary
- UMB Financial's shares traded lower after reporting strong earnings and announcing its acquisition of Heartland Financial for $2 billion.
- UMB's standalone financials remain impressive, with strong net interest income and credit quality.
- The acquisition of Heartland Financial is expected to increase UMB's earnings and provide cost-saving opportunities.
Shares of UMB Financial ( UMBF ) traded about 4% lower on Monday after reporting strong earnings and its all-stock acquisition of Heartland Financial ( HTLF ) for $2 billion. Alongside this acquisition , UMBF is selling $200 million of stock at $75 to boost capital to support this deal. That is about a 10% discount to where shares traded on Friday and will boost the share count by nearly 5%--this sized discount is standard for an offering of this size. In my view, UMB offers attractive stand-alone financials, and there is a credible path to making this purchase accretive. I view shares as a buy....
UMB Financial: Strong Q1 And Heartland Deal Make Shares Attractive