MINNEAPOLIS, Apr 08, 2009 (BUSINESS WIRE) -- U.S. Bancorp (NYSE: USB) announced today that its lead bank, U.S. Bank
N.A., has reached agreement to acquire the corporate trust bond
administration business of AmeriServ Financial, Inc. (NASDAQ: ASRV).
Bryan Calder, president of U.S. Bank Corporate Trust Services,
commented, "This acquisition exemplifies U.S. Bank's ongoing commitment
to continued strategic business investments during these difficult
economic times. The acquisition complements the existing U.S. Bank
corporate trust business and will strengthen our competitive position as
a leading national trustee for new municipal issuances. It also
increases market share and reflects U.S. Bank's standing as a leading
corporate trust provider in the Pennsylvania market. Through our
existing offices in Philadelphia and Pittsburgh, Pennsylvania, we are
committed to providing our new customers with the same high level of
quality services our current U.S. Bank corporate trust customers have
come to expect. The U.S. Bank team will work with AmeriServ to ensure a
seamless transition for the customers."
AmeriServ Financial, Inc. made the decision to exit the corporate trust
bond administration business as a result of the highly specialized
nature of the business, and the growing costs of administration which
have become prohibitive for regional trust companies. Ronald Virag,
president and chief executive officer for AmeriServ Trust and Financial
Services Company stated, "AmeriServ has elected to exit this line of
business and focus our talent and resources to serving personal trust,
retirement services and other lines of trust business."
Upon completion of this transaction, U.S. Bank's corporate trust
division will have $2.1 trillion in assets under administration, nearly
670,000 bondholders and more than 102,000 client issuances. This
acquisition reflects U.S. Bank's ongoing commitment to the corporate
trust industry and to remaining a leader in the area of tax-exempt debt
and a top-tier provider in new corporate bond issuances and asset-backed
and mortgage-backed securitizations.
Currently, U.S. Bank has 46 corporate trust offices across the country
and offers a complete line of trust services. U.S. Bank serves as
trustee and paying agent for the issuance of taxable and non-taxable
securities, including the review of documents and indentures,
registration and authentication of bonds, receipts and disbursement of
bond sale proceeds, successor trusteeships, escrow account services and
transfer and paying agency services. Also, U.S. Bank provides
mortgage-backed and asset-backed securitizations, money market paying
agency services, bond and tax administration, escrow services, claims
administration services and document custody services.
U.S. Bancorp, with $266 billion in assets, is the parent company of U.S.
Bank, the 6th largest commercial bank in the United States. The company
operates 2,791 banking offices and 5,164 ATMs in 24 states, 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 at usbank.com.
The following information appears in accordance with the Private
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 forward-looking
statements. These statements often include the words "may," "could,"
"would," "should," "believes," "expects," "anticipates," "estimates,"
"intends," "plans," "targets," "potentially," "probably," "projects,"
"outlook" or similar expressions. These forward-looking statements
cover, among other things, anticipated future revenue and expenses and
the future plans and prospects of U.S. Bancorp. Forward-looking
statements involve inherent risks and uncertainties, and important
factors could cause actual results to differ materially from those
anticipated. A continuation of the recent turbulence in significant
portions of the global financial markets, particularly if it worsens,
could impact our performance, both directly by affecting our revenues
and the value of our assets and liabilities, and indirectly by affecting
our counterparties and the economy generally. Dramatic declines in the
housing market in the past year have resulted in significant write-downs
of asset values by financial institutions. Concerns about the stability
of the financial markets generally have reduced the availability of
funding to certain financial institutions, leading to a tightening of
credit, reduction of business activity, and increased market volatility.
There can be no assurance that any governmental program or legislation
will help to stabilize the U.S. financial system or alleviate the
industry or economic factors that may adversely impact our business. In
addition, our business and financial performance could be impacted as
the financial industry restructures in the current environment, by
increased regulation of financial institutions or other effects of
recently enacted legislation, by changes in the creditworthiness and
performance of our counterparties, and by changes in the competitive
landscape. Our results could also be adversely affected by continued
deterioration in general business and economic conditions; changes in
interest rates; deterioration in the credit quality of our loan
portfolios or in the value of the collateral securing those loans;
deterioration in the value of securities held in our investment
securities portfolio; 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 U.S. Bancorp's Annual Report on Form
10-K for the year ended December 31, 2008, on file with the Securities
and Exchange Commission, including the sections entitled "Risk Factors"
and "Corporate Risk Profile," and all subsequent filings with the
Securities and Exchange Commission under Sections 13(a), 13(c), 14 or
15(d) of the Securities Exchange Act of 1934. 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 future events.
SOURCE: U.S. Bancorp
Steve Dale, 612-303-0784