HomeStreet to retain all branch employees
and keep branches open
U.S. Bancorp and MUFG Union Bank N.A. (“MUFG Union Bank”)
announced that they have entered into a definitive agreement to
sell three legacy MUFG Union Bank branches in San Bernardino
County, California to HomeStreet Bank (“HomeStreet”). The
divestiture of these branches, as directed by the Department of
Justice, is related to U.S. Bancorp’s previously announced
acquisition of MUFG Union Bank’s core regional banking
franchise.
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Under the agreement, the MUFG Union Bank branches located at the
following addresses will be sold to HomeStreet:
- 42138 Big Bear Boulevard, Big Bear Lake, California
- 17123 Main Street, Hesperia, California
- 57500 29 Palms Highway, Yucca Valley, California
The acquisition by HomeStreet will include the deposits,
customer relationships, related loans, owned real estate and fixed
assets associated with the branches, as well as the employees of
the branches. As part of the purchase agreement, HomeStreet will
assume approximately $490 million in deposits and purchase
approximately $22 million in loans.
“We are happy to welcome the employees and customers of these
branches to our network of retail deposit branches in Southern
California,” said Mark K. Mason, HomeStreet’s Chairman of the
Board, President, and Chief Executive Officer. “The addition of
these three branches will bring HomeStreet’s total number of
branches in Southern California to 20, including four in San
Bernardino County. Additionally, this acquisition will increase our
customer base by approximately 16,000 customer relationships, and
the additional funding will support our strategic growth. We have
an outstanding record of customer service and community
involvement, and we look forward to having a positive impact on the
new customers and communities we will be serving.”
“HomeStreet is committed to retaining all current Union Bank
employees at the three branches upon the close of the transaction.
HomeStreet believes that maintaining strong relationships both with
employees and customers will be critical to the long-term growth
and success of the branches. HomeStreet will provide additional
information to the employees and customers of the branches that are
slated for purchase by HomeStreet in the near term.”
The sale is expected to close in the first quarter of 2023,
subject to regulatory approval of the branch sale and other closing
conditions, including the closing of U.S. Bancorp’s acquisition of
MUFG Union Bank’s core regional banking franchise.
About U.S. Bancorp:
U.S. Bancorp, with approximately 70,000 employees and $591
billion in assets as of June 30, 2022, 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 2022 World’s Most Ethical Companies and Fortune’s most admired
superregional bank. Learn more at usbank.com/about.
About MUFG Union Bank:
As of June 30, 2022, MUFG Union Bank, N.A. operated 297
branches, consisting primarily of retail banking branches in the
West Coast states. We provide a wide spectrum of corporate 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 $124.7 billion, as of
June 30, 2022, 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 ¥386.9 trillion (JPY) or $2.8 trillion
(USD)¹, as of June 30, 2022. 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.
1 Exchange rate of 1 USD=¥136.68 (JPY) as of June 30, 2022.
About HomeStreet Bank:
HomeStreet, Inc. (Nasdaq: HMST) is a diversified financial
services company headquartered in Seattle, Washington, serving
consumers and businesses in the Western United States and Hawaii.
The Company is principally engaged in real estate lending,
including mortgage banking activities, and commercial and consumer
banking. HomeStreet Bank is the winner of the 2022 "Best Small
Bank" in Washington Newsweek magazine award. Certain information
about our business can be found on our investor relations web site,
located at http://ir.homestreet.com. HomeStreet Bank is a member of
the FDIC and is an Equal Housing Lender.
Forward Looking Statements
This press release may contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, concerning HomeStreet, Inc., HomeStreet Bank, U.S. Bancorp
and MUFG Union Bank and the sale of three California branches to
HomeStreet Bank. U.S. Bancorp and MUFG Union Bank (together, “U.S.
Bank”) and HomeStreet, Inc. and HomeStreet Bank (together
“HomeStreet”) intend for such forward-looking statements to be
covered by the safe harbor provisions for forward-looking
statements contained in the Private Securities Litigation Reform
Act of 1995. Future events are difficult to predict, and the
expectations described above are necessarily subject to risk and
uncertainty that may cause actual results to differ materially and
adversely. Forward-looking statements are based on many beliefs,
assumptions, estimates and expectations of our future performance,
taking into account information currently available to us. Such
statements involve inherent risks and uncertainties, many of which
are difficult to predict and are generally beyond HomeStreet’s and
U.S. Bank’s control, including the risks and uncertainties related
to the failure of required governmental approvals to be obtained or
any other closing conditions in the definitive purchase agreement
to be satisfied. You should consider, among other things, the risk
factors included in U.S. Bancorp’s and HomeStreet, Inc.’s
respective periodic reports filed with the Securities and Exchange
Commission, including but not limited to U.S. Bancorp’s and
HomeStreet, Inc.’s most recent Annual Reports on Form 10-K.
Forward-looking statements speak only as of the date made, and we
do not undertake to update them to reflect changes or events that
occur after that date. Neither HomeStreet nor U.S. Bank is
responsible for any statements or disclosures regarding any party
other than HomeStreet, Inc. and HomeStreet Bank or U.S. Bancorp and
MUFG Union Bank, as the case may be, that may be contained in this
press release.
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version on businesswire.com: https://www.businesswire.com/news/home/20221005005928/en/
HomeStreet Inc. and HomeStreet Bank John Michel Executive
Vice President and Chief Financial Officer (206) 515-2291
john.michel@homestreet.com http://ir.homestreet.com U.S. Bancorp
Media Contact Jeff Shelman U.S. Bancorp Public Affairs and
Communications (612) 303-9933 Jeffrey.shelman@usbank.com MUFG
Union Bank Media Contact Sierra Wilson Director, Corporate
Communications (213) 236-5329 Sierra.wilson@unionbank.com
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