MINNEAPOLIS--(BUSINESS WIRE)--July 25, 2006--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
municipal and corporate bond trustee business of SunTrust Banks, Inc.
(NYSE:STI). As a result of this transaction, U.S. Bank Corporate Trust
Services will acquire approximately 4,700 new client issuances and
assets under administration of $123 billion represented by principal
Diane Thormodsgard, president of U.S. Bank 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 tax-exempt debt issuances, as a top tier
corporate trust provider nationally, and as a leading corporate trust
provider in the Southeast. The U.S. Bank team will work with SunTrust
to ensure continued quality service and a seamless transition for the
Upon completion of this transaction, U.S. Bank's corporate trust
division will have $2.5 trillion in assets under administration,
716,000 bondholders and more than 92,000 client issuances. This
transaction gives U.S. Bank's corporate trust division a new location
in Orlando, Fla., and enhances its current offices in Atlanta; Miami;
Nashville, Tenn.; and Richmond, Va.
With U.S. Bank's history of successful mergers, the company is
committed to ensuring a smooth transition. Conversion and integration
risks are minimized since U.S. Bank and SunTrust utilize similar
technology platforms and employ many of the same key vendors.
Following the receipt of regulatory clearances and consummation of the
transaction, 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.
This transaction clearly affirms U.S. Bank as a leader in the
corporate trust industry - the largest trustee in the area of
tax-exempt debt and asset-backed and mortgage-backed securities.
U.S. Bank currently has 44 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 and
document custody services.
U.S. Bancorp, with assets of $213 billion, is the 6th largest
financial holding company in the United States. The company operates
2,434 bank offices and 4,966 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 is the parent company of U.S. Bank. 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. 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
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, 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, and effects of critical accounting policies and
judgments. 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, 2005, on
file with the SEC, for example the sections entitled "Risk Factors"
and "Corporate Risk Profile." 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.
CONTACT: U.S. Bancorp, Minneapolis
Steve Dale, 612-303-0784
Amy Frantti, 612-303-0733
Judith Murphy, 612-303-0783
SOURCE: U.S. Bancorp