U.S. Bancorp (NYSE: USB) (“U.S. Bank”) and Mitsubishi UFJ
Financial Group (NYSE: MUFG) (“MUFG”) have mutually agreed to
exercise their right under the purchase agreement for U.S. Bank’s
acquisition of MUFG Union Bank’s core regional banking franchise to
extend the outside termination date from September 30, 2022 to
December 31, 2022.
U.S. Bank and MUFG continue to plan for required regulatory
approvals and closing in the second half of 2022 and continue to
make significant progress in planning for closing the transaction
and integrating the companies while awaiting regulatory approvals.
U.S. Bank and MUFG remain committed to the acquisition and seeking
regulatory approvals.
This transaction is a unique opportunity to create a stronger
bank that will greatly benefit the customers, employees and
communities of both institutions. By deepening and expanding U.S.
Bank’s footprint, the transaction will enhance competition, and
provide customers with greater access to industry-leading
technology, products, and customer service. U.S. Bank is also
committed to further enhancing both organizations’ excellent
records of serving low-income communities and supporting
minority-led institutions. Following the transaction close, U.S.
Bank will retain all of MUFG Union Bank’s front-line branch
employees.
As part of the planned acquisition of MUFG Union Bank, U.S. Bank
announced in May 2022 a five-year community benefits plan (“CBP”),
developed in coordination with the National Community Reinvestment
Coalition and the California Reinvestment Coalition. The CBP,
totaling at least $100 billion, expands the important work underway
by U.S. Bank and MUFG Union Bank to build and support equitable
access to capital for the communities that both organizations
serve. The CBP builds on U.S. Bank’s previously announced U.S. Bank
Access Commitment efforts and integrates existing community impact
efforts from MUFG Union Bank.
Forward-Looking
Statements
“Safe Harbor” Statement under 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 hereof. These forward-looking statements
cover, among other things, any projections or expectations
regarding U.S. Bancorp’s proposed acquisition of MUFG Union Bank
described herein, U.S. Bancorp’s future revenues, expenses,
earnings, capital expenditures, deposits or stock price, as well as
the assumptions on which such expectations are based.
Forward-looking statements involve inherent risks and
uncertainties, and important factors could cause actual results to
differ materially from those anticipated.
U.S. Bancorp’s proposed acquisition of MUFG Union Bank presents
risks and uncertainties, including, among others: the risk that the
cost savings, any revenue synergies and other anticipated benefits
of the proposed acquisition may not be realized or may take longer
than anticipated to be realized; the risk that U.S. Bancorp’s
business could be disrupted as a result of the announcement and
pendency of the proposed acquisition and diversion of management’s
attention from ongoing business operations and opportunities; the
possibility that the proposed acquisition, including the
integration of MUFG Union Bank, may be more costly or difficult to
complete than anticipated; delays in closing the proposed
acquisition; and the failure of required governmental approvals to
be obtained or any other closing conditions in the definitive
purchase agreement to be satisfied.
For discussion of these and other risks that may cause actual
results to differ from those described in forward-looking
statements, refer to U.S. Bancorp’s Annual Report on Form 10-K for
the year ended December 31, 2021, on file with the Securities and
Exchange Commission, including the sections entitled “Corporate
Risk Profile” and “Risk Factors” 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. In addition, factors other than these risks also could
adversely affect U.S. Bancorp’s results, and the reader should not
consider these risks to be a complete set of all potential risks or
uncertainties. Readers are cautioned not to place undue reliance on
any forward-looking statements. Forward-looking statements speak
only as of the date hereof, and U.S. Bancorp undertakes no
obligation to update them in light of new information or future
events.
About U.S. Bank
U.S. Bancorp, with nearly 70,000 employees and $559 billion in
assets as of June 30, 2021, is the parent company of U.S. Bank
National Association. The Minneapolis-based company serves millions
of customers locally, nationally and globally through a diversified
mix of businesses: Consumer and Business Banking; Payment Services;
Corporate & Commercial Banking; and Wealth Management and
Investment Services. The company has been recognized for its
approach to digital innovation, social responsibility, and customer
service, including being named one of the 2021 World’s Most Ethical
Companies and Fortune’s most admired superregional bank. Learn more
at usbank.com/about.
About MUFG Union Bank, N.A.
As of June 30, 2021, MUFG Union Bank, N.A. operated 305
branches, consisting primarily of retail banking branches in the
West Coast states, along with commercial branches in Texas,
Illinois, New York, and Georgia. We provide a wide spectrum of
corporate, commercial, and retail banking and wealth management
solutions to meet the needs of our clients. We also offer an
extensive portfolio of value-added solutions for clients, including
investment banking, personal and corporate trust, global custody,
transaction banking, capital markets, and other services. With
assets of $133.2 billion, as of June 30, 2021, MUFG Union Bank has
strong capital reserves, credit ratings, and capital ratios
relative to peer banks. MUFG Union Bank is a proud member of the
Mitsubishi UFJ Financial Group (NYSE: MUFG), one of the world’s
largest financial institutions with total assets of approximately
¥362.1 trillion (JPY) or $3.3 trillion (USD)¹, as of June 30, 2021.
The corporate headquarters (principal executive office) for MUFG
Americas Holdings Corporation, which is the financial holding
company, and MUFG Union Bank, is in New York City. The main banking
office of MUFG Union Bank is in San Francisco, California.
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version on businesswire.com: https://www.businesswire.com/news/home/20220916005035/en/
U.S. Bancorp Investors: Jennifer Thompson, U.S. Bancorp
Investor Relations 612.303.0778, jen.thompson@usbank.com
Media: Jeff Shelman, U.S. Bancorp Public Affairs and
Communications 612.303.9933, jeffrey.shelman@usbank.com
MUFG Union Bank, N.A. Investors and Media: Eva Radtke,
Corporate Communications, MUFG Union Bank, N.A. 212.782.4085,
ERadtke@us.mufg.jp
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