MINNEAPOLIS & LOS ANGELES--(BUSINESS WIRE)--U.S. Bancorp (NYSE: USB) announced today that its lead bank, U.S. Bank National Association, has entered into a definitive agreement to purchase Mellon 1st Business Bank in California. Mellon 1st Business Bank is a wholly-owned subsidiary of The Bank of New York Mellon Corporation (NYSE: BK). As a result of this transaction, U.S. Bank will acquire $3.4 billion in assets, $1.1 billion in loans and $2.7 billion in deposits. Terms of the cash transaction agreement were not disclosed. This purchase is subject to regulatory approval and is expected to close by the end of the second quarter 2008, and to be fully integrated by the end of the fourth quarter of 2008.
Mellon 1st Business Bank is a premiere middle market bank and has seven offices in Southern California – one each in Orange, Torrance, Encino, Newport Beach, Ontario, Los Angeles and Century City. New customers who come to U.S. Bank as part this transaction will benefit from the convenience of additional banking locations. U.S. Bank has 333 locations in California, including 138 branches in the Southern California counties of Los Angeles, Orange, Riverside, San Bernardino, San Diego and Ventura. Wachtell, Lipton, Rosen and Katz served as U.S. Bancorp’s legal counsel on this transaction.
Also, U.S. Bancorp today announced the assignment of Joseph M. Otting, vice chairman of its commercial banking group, to be the senior officer for the company’s West Coast operations. Otting, 50, who will continue to oversee the organization’s commercial banking division nationally, will relocate from U.S. Bancorp’s headquarters city of Minneapolis to its regional headquarters in downtown Los Angeles, with offices in the U.S. Bank Tower.
“This acquisition complements U.S. Bank’s current middle market lending efforts in Southern California and will more than double our deposit share in the Los Angeles market,” noted Otting. “We expect this to be a very positive transaction for our shareholders and a great opportunity for us to deepen customer relationships by offering U.S. Bank’s extensive suite of products and services to new customers welcomed as part of this transaction.”
Richard K. Davis, chairman, president and chief executive officer of U.S. Bancorp, remarked, “We have a very strong team of outstanding lenders and bankers and a wide range of business lines and specialized businesses located in our West Coast region. This organization has long recognized the importance of our growing Western markets, and to place someone of Joseph’s talents and outstanding leadership abilities in this growth region strongly supports our focus on the future and our commitment to grow our franchise. This acquisition is the perfect time to announce his move.”
Otting’s continued responsibility for bank-wide commercial banking activities includes middle market banking, business equipment finance, deposit and payment solutions, SBA lending and the dealer services group. U.S. Bank’s metropolitan market presidents will continue to report to Otting, as they have done in the past.
Otting has a strong banking history on the West Coast and joined U.S. Bancorp in December 2001 to become president of U.S. Bank of Oregon. Following his work for the organization in Oregon, he moved in 2003 to Minneapolis and was responsible for the eastern commercial banking group and was named vice chairman and head of all commercial banking in 2005.
Prior to joining U.S. Bancorp, Otting was with Union Bank of California for 16 years where he was executive vice president and group head of commercial banking responsible for the California corporate banking and middle market group, asset-based finance, leverage lending group and the international banking sales force. He also was on the board and investment committees of UnionBanc Equities & Ventures. In addition, Otting was a board member of the Los Angeles Chamber of Commerce and on the board and executive committee of the Los Angeles Economic Development Corporation. Before joining Union Bank of California he was with Bank of America in California, where he held a number of positions.
U.S. Bancorp’s Western markets encompass the five states of California, Oregon, Washington, Arizona and Nevada and include more than 818 branches and $30 billion in deposits. U.S. Bank is a leading bank in Oregon and Washington and has shown tremendous growth in California in the last five years, nearly doubling its number of branches and increasing deposits by more than 44 percent. Also, U.S. Bank has grown in Arizona from only five branches five years ago to nearly 60 today.
U.S. Bancorp, with $238 billion in assets, is the parent company of U.S. Bank, the 6th largest commercial bank in the United States. The company operates 2,518 banking offices and 4,867 ATMs, and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. Visit U.S. Bancorp on the web at www.usbank.com.
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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. 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 plans and prospects of the Company. 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, effects of critical accounting policies and judgments, and management’s ability to effectively manage credit risk, market risk, operational risk, legal risk, and regulatory and compliance risk. For discussion of these and other risks that may cause actual results to differ from expectations, refer to our Annual Report on Form 10-K for the year ended December 31, 2007, on file with the Securities and Exchange Commission, including the sections entitled “Risk Factors” and “Corporate Risk Profile.” Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update them in light of new information or future events.