As a national financial services company prepares to acquire financial institution HTLF, officials with both companies say they are focused on collaborative growth and committed to a strong Dubuque presence moving forward.

UMB Financial announced earlier this week that it will acquire HTLF, the parent company of Dubuque Bank & Trust, in an all-stock deal valued at about $2 billion. The transaction is expected to be completed in the first quarter of 2025, pending regulatory approval.

The deal, which arose from an unsolicited offer, is expected to be the largest in UMB’s history and will lead to UMB having $64.5 billion in assets.

In an interview with the Telegraph Herald on Thursday, UMB Chairman and CEO Mariner Kemper said UMB is confident its broader product set and liquidity can add value to HTLF and DB&T’s already strong history in Dubuque.

“The thing that we see in coming together with (HTLF) is an ability for the combined companies to be bigger, bolder, smarter, stronger, faster, right there in Dubuque,” he said. “It’s two companies focused on making Dubuque better, and all the other communities that we’re in.”

UMB is based in Kansas City, Mo., and operates branches in Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas.

HTLF, formerly known as Heartland Financial USA, previously was based in Dubuque but moved its headquarters to Denver, Colo., last year as part of its efforts to bring the company’s 11 charters into a single location. The company’s banks currently serve communities in Arizona, California, Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Montana, New Mexico, Texas and Wisconsin.

Kemper said it is “highly likely” that local facilities and DB&T banks will see rebranding as part of UMB’s acquisition of HTLF but stated that the only changes to the customer experience will be positive.

“The name on the door is a lot less important than what you do with the name,” he said. “I can assure you that we will move quicker, respond faster (and) be more nimble and flexible than anybody else in town.”

After the closing of the deal, former HTLF stockholders are expected to collectively hold about 31% of the combined company. HTLF representatives will have five seats on a newly expanded board of UMB, though additional details remain in discussion.

Although Kemper said it is still too early to say what impacts the acquisition will have in terms of eliminating or merging positions, he said “there will be some impact,” which officials with HTLF and UMB will discuss as soon as possible.

“There are … areas where both organizations have some of the same staff, and we’ll be looking at that,” he said. “It all will be done with as little impact as possible, and done with care and heart.”

HTLF President and CEO Bruce Lee said no changes currently are planned for staffing of DB&T. According to Ryan Lund, HTLF director of corporate communication, HTLF and DB&T currently employ a combined total of approximately 350 people in Dubuque.

“We operate separately until we close, so from an employment standpoint, nothing’s changing (immediately) because we have to operate and they have to operate,” Lee said.

In February, Lee announced plans to retire from his position as CEO and his spot on the company’s board of directors at the end of 2024. He said Thursday that his intent, with the board’s support, is to remain in his position through the closing of the acquisition in early 2025.

Kemper said corporate citizenship is a key component of UMB’s business model.

“We’re all about weaving our way into the fabric of the communities where we do business because we’re lucky to benefit from the resources that the communities we serve give us,” he said. “We’re the stewards of local deposits, so we feel obligated to return the reward that all of the employees and shareholders of UMB get from being able to steward those assets.”

As the first step into that corporate citizenship in Dubuque, Kemper said, UMB will be making a $100,000 contribution to Dubuque Community Y’s ongoing efforts to construct a new facility.

When contacted by the TH on Thursday, Dubuque Community Y CEO Tony Calabrese said the organization is grateful for the donation.

“We’re very excited about this fantastic gift that will be a contribution to the new future YMCA,” he said. “We’re glad to see (UMB) in our community, and we’re excited about the community partnership and being part of that initial piece of them coming to town.”