U.S. Bancorp Vice Chairman Joseph Otting to Relocate to CaliforniaMINNEAPOLIS & LOS ANGELES, Mar 28, 2008 (BUSINESS WIRE) -- U.S. Bancorp (NYSE: USB) announced today that its lead bank, U.S.
Bank National Association, has entered into a definitive agreement to
purchase Mellon 1st Business Bank in California. Mellon 1st Business
Bank is a wholly-owned subsidiary of The Bank of New York Mellon
Corporation (NYSE: BK). As a result of this transaction, U.S. Bank
will acquire $3.4 billion in assets, $1.1 billion in loans and $2.7
billion in deposits. Terms of the cash transaction agreement were not
disclosed. This purchase is subject to regulatory approval and is
expected to close by the end of the second quarter 2008, and to be
fully integrated by the end of the fourth quarter of 2008.
Mellon 1st Business Bank is a premiere middle market bank and has
seven offices in Southern California - one each in Orange, Torrance,
Encino, Newport Beach, Ontario, Los Angeles and Century City. New
customers who come to U.S. Bank as part this transaction will benefit
from the convenience of additional banking locations. U.S. Bank has
333 locations in California, including 138 branches in the Southern
California counties of Los Angeles, Orange, Riverside, San Bernardino,
San Diego and Ventura. Wachtell, Lipton, Rosen and Katz served as U.S.
Bancorp's legal counsel on this transaction.
Also, U.S. Bancorp today announced the assignment of Joseph M.
Otting, vice chairman of its commercial banking group, to be the
senior officer for the company's West Coast operations. Otting, 50,
who will continue to oversee the organization's commercial banking
division nationally, will relocate from U.S. Bancorp's headquarters
city of Minneapolis to its regional headquarters in downtown Los
Angeles, with offices in the U.S. Bank Tower.
"This acquisition complements U.S. Bank's current middle market
lending efforts in Southern California and will more than double our
deposit share in the Los Angeles market," noted Otting. "We expect
this to be a very positive transaction for our shareholders and a
great opportunity for us to deepen customer relationships by offering
U.S. Bank's extensive suite of products and services to new customers
welcomed as part of this transaction."
Richard K. Davis, chairman, president and chief executive officer
of U.S. Bancorp, remarked, "We have a very strong team of outstanding
lenders and bankers and a wide range of business lines and specialized
businesses located in our West Coast region. This organization has
long recognized the importance of our growing Western markets, and to
place someone of Joseph's talents and outstanding leadership abilities
in this growth region strongly supports our focus on the future and
our commitment to grow our franchise. This acquisition is the perfect
time to announce his move."
Otting's continued responsibility for bank-wide commercial banking
activities includes middle market banking, business equipment finance,
deposit and payment solutions, SBA lending and the dealer services
group. U.S. Bank's metropolitan market presidents will continue to
report to Otting, as they have done in the past.
Otting has a strong banking history on the West Coast and joined
U.S. Bancorp in December 2001 to become president of U.S. Bank of
Oregon. Following his work for the organization in Oregon, he moved in
2003 to Minneapolis and was responsible for the eastern commercial
banking group and was named vice chairman and head of all commercial
banking in 2005.
Prior to joining U.S. Bancorp, Otting was with Union Bank of
California for 16 years where he was executive vice president and
group head of commercial banking responsible for the California
corporate banking and middle market group, asset-based finance,
leverage lending group and the international banking sales force. He
also was on the board and investment committees of UnionBanc Equities
& Ventures. In addition, Otting was a board member of the Los Angeles
Chamber of Commerce and on the board and executive committee of the
Los Angeles Economic Development Corporation. Before joining Union
Bank of California he was with Bank of America in California, where he
held a number of positions.
U.S. Bancorp's Western markets encompass the five states of
California, Oregon, Washington, Arizona and Nevada and include more
than 818 branches and $30 billion in deposits. U.S. Bank is a leading
bank in Oregon and Washington and has shown tremendous growth in
California in the last five years, nearly doubling its number of
branches and increasing deposits by more than 44 percent. Also, U.S.
Bank has grown in Arizona from only five branches five years ago to
nearly 60 today.
U.S. Bancorp, with $238 billion in assets, is the parent company
of U.S. Bank, the 6th largest commercial bank in the United States.
The company operates 2,518 banking offices and 4,867 ATMs, and
provides a comprehensive line of banking, brokerage, insurance,
investment, mortgage, trust and payment services products to
consumers, businesses and institutions. Visit U.S. Bancorp on the web
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Securities Litigation Reform Act of 1995:
This press release contains forward-looking statements about U.S.
Bancorp. Statements that are not historical or current facts,
including statements about beliefs and expectations, are
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inherent risks and uncertainties, and important factors could cause
actual results to differ materially from those anticipated, including
changes in general business and economic conditions, changes in
interest rates, legal and regulatory developments, increased
competition from both banks and non-banks, changes in customer
behavior and preferences, effects of mergers and acquisitions and
related integration, effects of critical accounting policies and
judgments, and management's ability to effectively manage credit risk,
market risk, operational risk, legal risk, and regulatory and
compliance risk. For discussion of these and other risks that may
cause actual results to differ from expectations, refer to our Annual
Report on Form 10-K for the year ended December 31, 2007, on file with
the Securities and Exchange Commission, including the sections
entitled "Risk Factors" and "Corporate Risk Profile." Forward-looking
statements speak only as of the date they are made, and the Company
undertakes no obligation to update them in light of new information or
SOURCE: U.S. Bancorp
Teri Charest (Media), 612-303-0732
Steve Dale (Media), 612-303-0784
Judith Murphy (Analysts), 612-303-0783
The Bank of New York Mellon
Susan Rivers (Media), 617-722-7193