MINNEAPOLIS--(BUSINESS WIRE)--U.S. Bancorp (NYSE: USB) announced today that its lead bank, U.S. Bank N.A., has reached agreement to acquire the corporate trust bond administration business of AmeriServ Financial, Inc. (NASDAQ: ASRV).
Bryan Calder, president of U.S. Bank Corporate Trust Services, commented, “This acquisition exemplifies U.S. Bank’s ongoing commitment to continued strategic business investments during these difficult economic times. The acquisition complements the existing U.S. Bank corporate trust business and will strengthen our competitive position as a leading national trustee for new municipal issuances. It also increases market share and reflects U.S. Bank’s standing as a leading corporate trust provider in the Pennsylvania market. Through our existing offices in Philadelphia and Pittsburgh, Pennsylvania, we are committed to providing our new customers with the same high level of quality services our current U.S. Bank corporate trust customers have come to expect. The U.S. Bank team will work with AmeriServ to ensure a seamless transition for the customers.”
AmeriServ Financial, Inc. made the decision to exit the corporate trust bond administration business as a result of the highly specialized nature of the business, and the growing costs of administration which have become prohibitive for regional trust companies. Ronald Virag, president and chief executive officer for AmeriServ Trust and Financial Services Company stated, “AmeriServ has elected to exit this line of business and focus our talent and resources to serving personal trust, retirement services and other lines of trust business.”
Upon completion of this transaction, U.S. Bank’s corporate trust division will have $2.1 trillion in assets under administration, nearly 670,000 bondholders and more than 102,000 client issuances. This acquisition reflects U.S. Bank’s ongoing commitment to the corporate trust industry and to remaining a leader in the area of tax-exempt debt and a top-tier provider in new corporate bond issuances and asset-backed and mortgage-backed securitizations.
Currently, U.S. Bank has 46 corporate trust offices across the country and offers a complete line of trust services. U.S. Bank serves as trustee and paying agent for the issuance of taxable and non-taxable securities, including the review of documents and indentures, registration and authentication of bonds, receipts and disbursement of bond sale proceeds, successor trusteeships, escrow account services and transfer and paying agency services. Also, U.S. Bank provides mortgage-backed and asset-backed securitizations, money market paying agency services, bond and tax administration, escrow services, claims administration services and document custody services.
U.S. Bancorp, with $266 billion in assets, is the parent company of U.S. Bank, the 6th largest commercial bank in the United States. The company operates 2,791 banking offices and 5,164 ATMs in 24 states, 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 usbank.com.
The following information appears in accordance with 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. 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 U.S. Bancorp. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. A continuation of the recent turbulence in significant portions of the global financial markets, particularly if it worsens, could impact our performance, both directly by affecting our revenues and the value of our assets and liabilities, and indirectly by affecting our counterparties and the economy generally. Dramatic declines in the housing market in the past year have resulted in significant write-downs of asset values by financial institutions. Concerns about the stability of the financial markets generally have reduced the availability of funding to certain financial institutions, leading to a tightening of credit, reduction of business activity, and increased market volatility. There can be no assurance that any governmental program or legislation will help to stabilize the U.S. financial system or alleviate the industry or economic factors that may adversely impact our business. In addition, our business and financial performance could be impacted as the financial industry restructures in the current environment, by increased regulation of financial institutions or other effects of recently enacted legislation, by changes in the creditworthiness and performance of our counterparties, and by changes in the competitive landscape. Our results could also be adversely affected by continued deterioration in general business and economic conditions; changes in interest rates; deterioration in the credit quality of our loan portfolios or in the value of the collateral securing those loans; deterioration in the value of securities held in our investment securities portfolio; 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 U.S. Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2008, on file with the Securities and Exchange Commission, including the sections entitled “Risk Factors” and “Corporate Risk Profile,” 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. 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.