U.S. Bancorp (NYSE: USB) announced today that it has received
all required regulatory approvals to complete the previously
announced acquisition of MUFG Union Bank’s core regional banking
franchise from Mitsubishi UFJ Financial Group (NYSE: MUFG) and that
the transaction is expected to close on December 1.
MUFG received approval from the Japanese Financial Services
Agency on October 19, 2022. The transaction was previously approved
by the Board of Governors of the Federal Reserve System, the Office
of the Comptroller of the Currency and the Federal Deposit
Insurance Corporation.
The December 1 expected closing date remains subject to the
satisfaction of closing conditions set forth in the agreement
between the banks.
“We are looking forward to welcoming the customers and employees
of MUFG Union Bank to U.S. Bank,” said U.S. Bank chairman,
president and CEO Andy Cecere.
With the acquisition, U.S. Bank will gain more than 1 million
loyal consumer customers and about 190,000 small business customers
on the West Coast in addition to significant loans and deposits.
The combination will improve U.S. Bank’s deposit position in
California from 10th to 5th.
In May, U.S. Bank announced a five-year, $100 billion community
benefits plan as part of the MUFG Union Bank acquisition that will
support the ability of low- and moderate-income communities and
communities of color to access capital and build wealth. Sixty
percent of the total commitments will support work in California,
the state most impacted by the acquisition.
After closing, U.S. Bank will provide MUFG Union Bank customers
with information regarding the conversion of their accounts. Until
conversion in the first half of 2023, customers will continue to be
served by their respective branches, website and mobile apps.
About U.S. Bank
U.S. Bancorp, with approximately 70,000 employees and $601
billion in assets as of September 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.
“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, anticipated future revenue and expenses and the
future plans and prospects of U.S. Bancorp. Forward-looking
statements often use words such as “anticipates,” “targets,”
“expects,” “hopes,” “estimates,” “projects,” “forecasts,”
“intends,” “plans,” “goals,” “believes,” “continue” and other
similar expressions or future or conditional verbs such as “will,”
“may,” “might,” “should,” “would” and “could.”
Forward-looking statements involve inherent risks and
uncertainties, including the following risks and uncertainties and
the risks and uncertainties more fully discussed in the section
entitled “Risk Factors” of Exhibit 13 to U.S. Bancorp’s Annual
Report on Form 10-K for the year ended December 31, 2021, which
could cause actual results to differ materially from those
anticipated. Deterioration in general business and economic
conditions or turbulence in domestic or global financial markets
could adversely affect U.S. Bancorp’s revenues and the values of
its assets and liabilities, reduce the availability of funding to
certain financial institutions, lead to a tightening of credit, and
increase stock price volatility. In addition, changes to statutes,
regulations, or regulatory policies or practices could affect U.S.
Bancorp in substantial and unpredictable ways. U.S. Bancorp’s
results could also be adversely affected by changes in interest
rates; the impacts of the COVID-19 pandemic on its business,
financial position, results of operations, liquidity and prospects;
increases in unemployment rates; deterioration in the credit
quality of its loan portfolios or in the value of the collateral
securing those loans; deterioration in the value of its investment
securities; legal and regulatory developments; litigation;
increased competition from both banks and non-banks; civil unrest;
the effects of climate change; changes in customer behavior and
preferences; breaches in data security, including as a result of
work-from-home arrangements; failures to safeguard personal
information; the impacts of international hostilities or
geopolitical events; impacts of supply chain disruptions and rising
inflation; effects of mergers and acquisitions and related
integration; effects of critical accounting policies and judgments;
and management’s ability to effectively manage credit risk, market
risk, operational risk, compliance risk, strategic risk, interest
rate risk, liquidity risk and reputation risk. In addition, 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 any 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20221019005570/en/
Investor contact: George Andersen, U.S. Bancorp Investor
Relations george.andersen@usbank.com, 612.303.3620
Media contact: Jeff Shelman, U.S. Bancorp Public Affairs and
Communications Jeffrey.shelman@usbank.com, 612.303.9933,
@usbank_news
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