Announces Agreement to Acquire Securitization Trust Administration
Businesses from Bank of America, N.A.
MINNEAPOLIS, Nov 15, 2010 (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 the domestic and European-based securitization trust
administration businesses of Bank of America, N.A.
"This transaction not only affirms U.S. Bank as a leader in the
corporate trust industry, it strengthens its strong positions in
collateralized debt obligations and commercial and residential
mortgage-backed securitizations," said Terrance Dolan, vice chairman of
Wealth Management and Securities Services at U.S. Bancorp. "The
transaction also establishes a U.S. Bank Corporate Trust Services
presence in Europe with offices in Ireland and London, England, while
significantly enhancing the U.S. Bank corporate trust presence in
As a result of this transaction, U.S. Bank Corporate Trust Services will
acquire approximately 2,153 active securitization and related
transactions, more than 2.4 million residential mortgage files and
84,000 commercial files, and $1.1 trillion in assets under
administration. Additionally, the transaction is expected to provide
U.S. Bank with over $10 billion of deposits.
"U.S. Bank is committed to providing its new customers with the same
high level of quality services that current U.S. Bank Corporate Trust
customers have come to expect," said Bryan Calder, president of
Corporate Trust Services at U.S. Bank. "U.S. Bank has a history of
successful corporate trust acquisitions, having completed 18
acquisitions over the past 20 years, and the company is committed to
ensuring a smooth transition. Conversion and integration risks are
minimized since U.S. Bank and Bank of America utilize similar technology
platforms and employ many of the same key vendors."
After conversion, the acquired U.S. and European trust businesses will
operate under the U.S. Bank trade name. The transaction is expected to
close in December 2010, subject to regulatory approval.
Currently, U.S. Bank has 48 corporate trust offices across the country
and offers a complete line of trust services. U.S. Bank provides
trustee, calculation agent and custodial services for mortgage-backed,
asset-backed and CDO securitizations. U.S. Bank also serves as trustee
and paying agent for the issuance of taxable and non-taxable securities,
money market paying agent services and escrow services. U.S. Bank
Corporate Trust Services is one of the highest ranked trustees in the
areas of tax-exempt debt and new corporate bond issuances.
Additional information regarding this transaction is included in a brief
presentation posted on the U.S. Bank website. To access the
presentation, go to www.usbank.com
and click on "About U.S. Bank." The link to the presentation can be
found in the Investor Relations section of the website under both "Press
Releases" and "Webcasts and Presentations."
U.S. Bancorp, with $291 billion in assets as of Sept. 30, 2010, is the
parent company of U.S. Bank, the fifth largest commercial bank in the
United States. The company operates 3,013 banking offices in 24 states
and 5,323 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 at www.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 and are based on the information available to, and
assumptions and estimates made by, management as of the date made. 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. Global and domestic economies could fail to recover
from the recent economic downturn or could experience another severe
contraction, which could adversely affect U.S. Bancorp's revenues and
the values of its assets and liabilities. Global financial markets could
experience a recurrence of significant turbulence, which could reduce
the availability of funding to certain financial institutions and lead
to a tightening of credit, a reduction of business activity, and
increased market volatility. Stress in the commercial real estate
markets, as well as a delay or failure of recovery in the residential
real estate markets, could cause additional credit losses and
deterioration in asset values. In addition, U.S. Bancorp's business and
financial performance is likely to be impacted by effects of recently
enacted and future legislation and regulation. U.S. Bancorp's 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 its loan portfolios or in the
value of the collateral securing those loans; deterioration in the value
of securities held in its 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, residual value risk, market risk,
operational risk, interest rate risk and liquidity 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, 2009, on file with the Securities
and Exchange Commission, including the sections entitled "Risk Factors"
and "Corporate Risk Profile" contained in Exhibit 13, 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
U.S. Bancorp undertakes no obligation to update them in light of new
information or future events.
SOURCE: U.S. Bancorp
Steve Dale, Media Relations, 612-303-0784
Judy Murphy, Investor Relations, 612-303-0783