UMB Financial's (UMBF) acquisition of Heartland Financial (HTLF) will provide "attractive synergies and growth opportunities" once it closes in early 2025, RBC Capital Markets said in a note Friday.

The Heartland acquisition is expected to add around $65 billion to the company's balance sheet in pro-forma assets, while simultaneously strengthening and expanding UMB Financial's presence in three states: Colorado, Texas, and California.

RBC said the company's set of institutional fee businesses also differentiates it from regional peers.

"UMB offers a diverse set of institutional fee businesses including fund services, corporate trust, capital markets, and healthcare services. These businesses drive fee income to an impressive 35% to 40% of total revenues, while diversifying the funding base," RBC wrote.

The firm initiated UMB's coverage at sector perform with a price target of $130.

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