MINNEAPOLIS, May 25, 2004 (BUSINESS WIRE) -- U.S. Bancorp
(NYSE:USB) announced today that its lead bank, U.S. Bank N.A., has
signed a definitive agreement to acquire the corporate trust bond
administration business of National City Corporation (NYSE:NCC). As a
result of this transaction, U.S. Bank's corporate trust division will
acquire approximately 3,800 new client issuances, 291,500 bondholders
and $34 billion in assets under administration.
Diane Thormodsgard, president of U.S. Bank's Corporate Trust and
Institutional Trust & Custody Services, commented, "This acquisition
complements U.S. Bank's existing corporate trust business and will
strengthen our competitive position by increasing our existing scale
and leveraging our industry leading technology and operational
platforms. Also, this further solidifies the U.S. Bank position as the
number one trustee for new municipal issuances, as a top tier
corporate trust provider nationally, and as the leading corporate
trust provider in the Midwest. We are committed to providing our new
customers with the same high level of quality services that our
current U.S. Bank corporate trust customers have come to expect. The
U.S. Bank team will work with National City to ensure a seamless
transition for the customers."
Upon completion of this transaction, U.S. Bank's corporate trust
division will have $1.2 trillion in assets under administration, 1.1
million bondholders and 64,000 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 municipal finance
and a top tier provider in new corporate bond issuances and structured
This transaction gives U.S. Bank's corporate trust division new
locations in: Indianapolis; Cleveland; Columbus, Ohio; Louisville,
Ky.; and Pittsburgh, and enhances its current office in Detroit.
Currently, U.S. Bank has 26 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 and document custody services.
U.S. Bancorp, with assets of $192 billion, is the 7th largest
financial services holding company in the United States. The company
operates 2,275 banking offices and 4,472 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. U.S. Bancorp is home of the
Five Star Service Guarantee which assures customers of certain key
banking benefits and services or customers will be paid for their
inconvenience. U.S. Bancorp is the parent company of U.S. Bank. Visit
U.S. Bancorp on the web at usbank.com.
This press release contains forward-looking statements. Statements
that are not historical or current facts, including statements about
beliefs and expectations, are forward-looking statements. These
forward-looking statements cover, among other things, anticipated
earnings, impact of the acquisition and future integration activities.
Forward-looking statements involve inherent risks and uncertainties,
and important factors could cause actual results to differ materially
from those anticipated, including the following, in addition to those
contained in the Company's reports on file with the SEC: (i) general
economic or industry conditions could be less favorable than expected,
resulting in a deterioration in credit quality; (ii) the Company could
encounter unforeseen complications in connection with the ongoing
integration of the products, operations and information systems of
U.S. Bancorp that could adversely affect the Company's operations or
customer relationships; and (iii) the acquisition of National City
Corporation's corporate trust bond administration business may not
produce revenue enhancements or cost savings at levels or within time
frames originally anticipated, or may result in unforeseen integration
difficulties. 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 (Media)
H.D. McCullough, 612303-0786 (Analysts)
Judith Murphy, 612-303-0783 (Analysts)
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