UMB to acquire California lender for $506 million

UMB Financial has agreed to acquire El Dorado Savings Bank in a $506m cash-and-stock deal, expanding the Missouri-based lender’s retail banking footprint in California and Nevada.

The deal, announced October 27, will add 31 branches in California and four in Nevada, taking UMB’s network to 227 branches across 15 states. El Dorado’s chief executive, David O. Cook, will become vice chairman of UMB Bank California.

Under the agreement, 52% of the consideration will be paid in cash and 48% in UMB stock. The acquisition requires regulatory approval and approval from El Dorado shareholders, with completion expected in the first quarter of 2027.

UMB chief executive Mariner Kemper said the purchase would strengthen the bank’s California presence and extend its branch network into Nevada. The deal is UMB’s first acquisition since regulators approved its $2bn acquisition of Heartland Financial in January 2025.

The Placerville, California-based bank brings a deposit base with a reported cost of less than 1%, alongside a relatively low loan-to-deposit ratio. Meanwhile, UMB said the additional deposits would provide liquidity and create opportunities to expand lending.

Kemper said further acquisitions remained possible as UMB integrates El Dorado, but the bank would favor smaller deals that allow it to retain control of management, culture, and its board. He also said UMB would avoid a transaction that pushed its assets above $100bn, a threshold associated with additional regulatory requirements.