UMB Agrees To Buy 35-Branch El Dorado Savings Bank In A Deal Valued At About $506 Million
The cash-and-stock deal takes UMB into Nevada and is targeted to close in the first quarter of 2027.
UMB Financial, the Kansas City bank holding company, agreed Tuesday to buy El Dorado Savings Bank of Placerville, California, in a 52% cash, 48% stock deal valued at about $506 million, according to an 8-K filing. The purchase adds 35 branches in California and Nevada and extends UMB's retail network into Nevada for the first time.
Terms: 13.553 shares plus cash
Each El Dorado share converts into 13.553 shares of UMBF common stock plus $1,958.88 in cash. Both boards approved the terms unanimously, and former El Dorado shareholders are expected to own about 2% of the combined company.
El Dorado will merge into UMB Bank, UMB's national bank subsidiary. The companies will operate independently until closing, and El Dorado CEO David O. Cook will become vice chairman of UMB Bank California.
UMB's investor presentation puts the deposit premium at 8.0%.
A cheap-deposit franchise with idle cash
Founded in 1958, El Dorado had $2.4 billion in assets, $2.1 billion in deposits and $0.5 billion in loans as of September 30, 2026. Its third-quarter cost of deposits was 0.88%, and 89% of deposits are FDIC insured, the presentation says.
The loan-to-deposit ratio is 24%, which UMB cites as excess liquidity it can put to work. Cash and securities make up 22% and 56% of assets, respectively.
El Dorado's 35 branches span the Sacramento area, the Sierra Nevada foothills and the Lake Tahoe communities: 31 in California and four in Nevada.
Building on HTLF in California
UMB, which provides commercial, personal and institutional banking and asset servicing, will have 227 branches across 15 states after the deal. Chairman and CEO Mariner Kemper called it "a significant leap forward for our retail footprint and overall presence in California."
He said UMB grew its California presence with the HTLF acquisition in 2025, and that the region made this "our next phase of expansion."
The deal needs regulatory approvals and a vote of El Dorado shareholders, and is expected to close in the first quarter of 2027.
UMB released third-quarter earnings after the market closed Tuesday and holds its call Wednesday at 9:30 a.m. ET.
Sources
- 8-K Filing — UMB FINANCIAL CORP (UMBF) — SEC EDGAR
- Exhibit umbf-ex99_1.htm — UMB FINANCIAL CORP 8-K exhibit — SEC EDGAR
- Exhibit umbf-ex99_2.htm — UMB FINANCIAL CORP 8-K exhibit — SEC EDGAR
