UMB Financial Corporation (Nasdaq: UMBF), a $16.3 billion
diversified financial holding company as of September 30, 2014,
headquartered in Kansas City, Mo., and the Pohlad family of
Minneapolis, Minn., announced the execution of a definitive
agreement for UMB to acquire Marquette Financial Companies (MFC), a
$1.3 billion financial-services company owned by the Pohlad family,
in an all-stock transaction. MFC operates 13 branches in Arizona
and Texas, two national specialty-lending businesses focused on
asset-based lending and factoring as well as an asset-management
firm.
Upon closing, the Pohlad family will receive approximately 3.4
million shares, or $182.5 million based on UMBF’s closing price of
$53.16 on Friday, December 12, 2014, representing approximately 7%
ownership in UMBF. This consideration represents a multiple of 1.6x
MFC’s tangible book value as of September 30, 2014. The
consideration is subject to closing equity adjustments.
“With this announcement, UMB continues to demonstrate our
commitment to partnering with companies that are a strategic,
financial and cultural fit. We expect the combination of UMB and
MFC to be financially attractive as a result of our complementary
balance sheets, increased penetration of strategic markets and the
addition of national business lines,” said Mariner Kemper, chairman
and CEO, UMB Financial Corporation.
Anticipated metrics of the transaction include:
- Expected to be immediately accretive to
UMB’s tangible book value per share at closing.
- Estimated to be accretive to 2016
EPS.
- Cost savings of approximately $14
million, or 23% of the last twelve months of MFC noninterest
expense as of September 30, 2014, to be phased in over two
years.
“This acquisition will quickly increase UMB’s presence in
Arizona and Texas—two key growth markets for UMB—and supplement
UMB’s commercial-banking services with national factoring and
asset-based lending and asset-management businesses. Cultural
compatibility, so critical to successful integration, was another
important factor in our criteria, and we see great similarities in
how our companies approach business practices, engage our
associates and serve our communities,” Kemper said.
MFC is a privately held financial-services company with a
portfolio of businesses, including Phoenix-based Meridian Bank,
N.A., and Ft. Worth-based Meridian Bank Texas. Meridian Bank, N.A.
has eight branches in the Phoenix area, with total assets of $720
million, loans of $539 million and deposits of $574 million, as of
September 30, 2014. Meridian Bank Texas has five branches in Ft.
Worth, Dallas and Denton, with total assets of $433 million, loans
of $318 million and deposits of $378 million, as of September 30,
2014.
Within Meridian Bank, N.A. are Dallas-based Marquette Business
Credit, which provides asset-based loans for working capital,
recapitalization, growth, and mergers and acquisitions; Marquette
Transportation Finance, which provides accounts-receivable
financing and factoring primarily for transportation businesses,
and its division, Marquette Commercial Finance; and Marquette Asset
Management, which provides private asset-management and trust
services to individuals, families and institutions, based in
Minneapolis, Minn.
Speaking on behalf of the Pohlad family, Jim Pohlad said that
confidence in this transaction is evidenced by the family’s
involvement as a UMBF investor following the close of the
transaction.
“We are excited about the potential power these two companies
will generate by operating together after closing,” Pohlad said.
“UMB rose to the top of our list of potential partners due to their
shared vision, culture and track record for success. We are looking
forward to UMB’s continued growth.”
“Marquette and UMB have foundations built on a commitment to
customer service, hiring talented people and growing through
diversification,” said Bert Colianni, director of Marquette
Financial Companies. “Additionally, we each have benefitted from
the leadership of historically strong families with similar
approaches to business and community involvement. We anticipate
this partnership will offer our customers and associates great
opportunities with expanded locations and product sets.”
The transaction has been approved by the boards of directors at
both companies and is anticipated to close mid-2015. Both companies
will continue to conduct business as usual while the acquisition is
pending regulatory approval.
RBC Capital Markets, LLC served as exclusive financial adviser
to UMB. Sullivan & Cromwell and Holland & Hart served as
legal counsel to UMB. D.A. Davidson served as exclusive financial
adviser to MFC. Briggs and Morgan served as legal counsel to
MFC.
Forward-Looking Statements and Non-GAAP
Reconciliation
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements can be identified by the fact that they do
not relate strictly to historical or current facts—such as our
statements about accretion to tangible book value per share or
earnings per share, cost savings, and pro forma ownership. All
forward-looking statements are subject to assumptions, risks, and
uncertainties. Our actual future objectives, strategies, plans,
prospects, performance, condition, or results may differ materially
from those set forth in any forward-looking statement. Some of the
factors that may cause actual results or other future events,
circumstances, or aspirations to differ from those in
forward-looking statements are described in our Annual Report on
Form 10-K for the year ended December 31, 2013, our subsequent
Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, or
other applicable documents that are filed or furnished with the
Securities and Exchange Commission. Any forward-looking statement
made by us or on our behalf speaks only as of the date that it was
made. We do not undertake to update any forward-looking statement
to reflect the impact of events, circumstances, or results that
arise after the date that the statement was made. You, however,
should consult further disclosures that we may make in the
future.
In this press release, we provide information using the tangible
book value (TBV) per share of UMBF and the TBV of MFC. This
information supplements the results that are reported according to
generally accepted accounting principles (GAAP) and should not be
viewed in isolation from, or as a substitute for, GAAP results. The
difference between each of the TBV per share of UMBF and the TBV of
MFC, as applicable on the one hand, and the comparable GAAP
measure, on the other hand, is reconciled later in this release. We
believe that this information and the reconciliations may be useful
to investors because TBV per share and TBV are commonly used by
investors as an additional measure of a company’s total value and
the strength and adequacy of its capital-management strategies.
Investor Conference Call
UMB plans to host a conference call to discuss the details of
the transaction on December 16, 2014, at 8:30 a.m. (CT).
Interested parties may access the call by dialing (toll-free)
888-359-3627 or (U.S.) 719-325-2435 and entering conference
identification number 1593580. The live call can also be accessed
by visiting the investor relations area of umbfinancial.com by
using the following link:
http://event.on24.com/r.htm?e=910804&s=1&k=8B375EC62252DE834EC88A436774BC89
A replay of the conference call may be heard until December 30,
2014, by calling (toll-free) 888-203-1112 or (U.S.) 719-457-0820.
The replay pass code required for playback is 1593580. The call
replay may also be accessed via the company's website
umbfinancial.com and visiting the investor relations area.
About UMB
UMB Financial Corporation (Nasdaq: UMBF) is a diversified
financial holding company headquartered in Kansas City, Mo.,
offering complete banking services, payment solutions, asset
servicing and institutional investment management to customers. UMB
operates banking and wealth management centers throughout Missouri,
Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas.
Subsidiaries of the holding company include companies that offer
services to mutual funds and alternative-investment entities and
registered investment advisors that offer equity and fixed income
strategies to institutions and individual investors. For more
information, visit umbfinancial.com, umb.com, blog.umb.com or
follow us on Twitter at @UMBBank, Facebook at facebook.com/UMBBank
and LinkedIn at linkedin.com/company/umb-bank.
About Marquette Financial
Companies
With Pohlad family involvement dating back to the 1940s,
Marquette Financial Companies today provides banking, commercial
finance, real estate lending and wealth management services to
businesses and their owners. Pohlad family holdings also include
companies in commercial real estate, automotive sales, and sports
and entertainment, including the Minnesota Twins, a Major League
Baseball franchise, as well as investments in privately held
companies.
Tangible Book value of UMB Financial Corporation at
September 30, 2014 (unaudited, dollars in thousands except per
share data) GAAP Total Shareholders' Equity $
1,615,349 Deduct: Goodwill and Other Intangibles (256,724)
Tangible Book Value $ 1,358,625 UMBF Shares Outstanding 45,485
Tangible Book Value Per Share $ 29.87 GAAP Total Shareholders’
Equity per Share $ 35.51
Price to MFC Tangible
Book Value of MFC Calculation at September 30, 2014 (unaudited,
dollars in thousands except per share data) GAAP Total
Shareholders' Equity $ 123,681 Deduct:
Goodwill and Other Intangibles (7,658) Tangible Book Value $
116,023 Total Expected Consideration 182,522 Price Per UMBF Share
at Close on December 12, 2014 $ 53.16 Price to Tangible Book Value
157% Price to GAAP Total Shareholders’ Equity 148%
UMB Financial CorporationMedia Contact:Kristin Kovach,
816-423-6131kkovach@barkleyus.comorInvestor Relations
Contact:Abby Wendel, 816-860-1685Abigail.Wendel@umb.com
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