U.S. Bancorp plans to buy the U.S. and European-based securitization trust administration businesses of Bank of America.
The deal, which will cost up to $35 million, will add annual revenue of more than $100 million and deposits of more than $10 billion and solidify the Minneapolis-based banking company as one of the largest providers of corporate trust services, U.S. Bancorp said in an investor presentation.
One-time merger expenses are expected to cost up to $45 million.
"This transaction ... strengthens [U.S. Bancorp's] 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 while significantly enhancing the U.S. Bank corporate trust presence in Chicago."
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, 84,000 commercial files and $1.1 trillion in assets under administration.
This is U.S. Bancorp's 18th corporate trust acquisition since 1990. The business manages payment and related services between institutional debtors and lenders. U.S. Bank has 48 corporate trust offices across the country.
NEAL ST. ANTHONY
