Division to expand footprint and increase market share in
retirement plan, labor management trust, and registered investment
advisor business segments
MINNEAPOLIS--(BUSINESS WIRE)--Feb. 1, 2012--
U.S. Bancorp (NYSE: USB) announced today its lead bank, U.S. Bank
National Association, entered into a definitive agreement to purchase
the institutional trust business providing services to retirement plans,
labor management trusts, and registered investment advisors from Union
Bank, N.A. With this transaction, the Institutional Trust and Custody
division of U.S. Bank will acquire approximately 4,300 client
relationships representing $42 billion in assets under administration.
“This acquisition is a great fit for U.S. Bank and solidifies us as a
leading provider of institutional trust and custody services by
significantly increasing U.S. Bank’s scale supporting the retirement
services, labor management, and registered investment advisor markets,”
said Terrance Dolan, vice chairman of the U.S. Bank Wealth Management
and Securities Services division.
Union Bank’s decision to exit the retirement plan services, labor
management trust services, and registered investment advisor business
segments does not affect any of its other banking relationships,
products, or services. Union Bank intends to strategically expand its
banking, global treasury management, asset management, brokerage,
corporate trust, and institutional custody business segments nationwide.
“Our decision was made after very thoughtful analysis of our market
position in these areas,” said Marianne Bamonte, senior vice president
and Institutional Services division manager of Union Bank. “The sale of
these business segments will allow us to strategically reinvest capital
in other areas to the long-term advantage of our clients and Union Bank.
At the same time, we are confident U.S. Bank’s scale will ensure
continued high quality services and support to the client relationships
they are acquiring.”
“We are pleased to have the opportunity to increase the presence of our
Institutional Trust and Custody division on the West Coast. This
transaction greatly complements our existing suite of services and adds
incredible talent,” said Jeff Kerr, president of the Institutional Trust
and Custody division of U.S. Bank. “We look forward to putting the
resources of U.S. Bank to work for our new clients and are dedicated to
providing an exemplary client experience.”
U.S. Bank anticipates retaining many of the key relationship staff and a
strong presence in current market locations. As an industry leader, U.S.
Bank continues to expand its capabilities to provide innovative
solutions that support its clients’ businesses.
Terms of the transaction were not disclosed.
About UnionBanCal Corporation & Union Bank, N.A.
Headquartered in San Francisco, UnionBanCal Corporation is a financial
holding company with assets of $89.7 billion at December 31, 2011. Its
primary subsidiary, Union Bank, N.A., is a full-service commercial bank
providing an array of financial services to individuals, small
businesses, middle-market companies, and major corporations. The bank
operated 414 branches in California, Washington, Oregon, Texas and New
York, as well as two international offices, on December 31, 2011.
UnionBanCal Corporation is a wholly-owned subsidiary of The Bank of
Tokyo-Mitsubishi UFJ, Ltd., which is a subsidiary of Mitsubishi UFJ
Financial Group, Inc. Union Bank is a proud member of the Mitsubishi UFJ
Financial Group (MUFG, NYSE:MTU), one of the world’s largest financial
organizations. Visit www.unionbank.com
for more information.
About U.S. Bank Institutional Trust and Custody
U.S. Bank Institutional Trust and Custody was formed to exclusively
serve the unique needs of institutional entities, including Taft-Hartley
Plans, government and public entities, registered investment advisors,
corporations, endowments and foundations, and insurance companies. As
one of the nation's leading financial institutions in the country, we
have provided trust, custody and investment management services for more
than 100 years. Our customized solutions are focused on the middle
market and delivered with a local presence.
About U.S. Bancorp
Minneapolis-based U.S. Bancorp, with $340 billion in assets as of
December 31, 2011, is the parent company of U.S. Bank National
Association, the fifth largest commercial bank in the United States. The
company operates 3,085 banking offices in 25 states and 5,053 ATMs and
provides a comprehensive line of banking, brokerage, insurance,
investment, mortgage, trust and payment services products to consumers,
businesses and institutions. U.S. Bancorp and its employees are
dedicated to improving the communities they serve, for which the company
earned the 2011 Spirit of America Award, the highest honor bestowed on a
company by United Way. Visit U.S. Bancorp on the web at www.usbank.com
for more information.
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. Continued 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 negatively 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. Finally, there can be no assurance that we will
realize the anticipated benefits of the acquisition of the Union Bank
institutional trust business.
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, 2010, 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
Corporate Public Relations