U.S. Bank has reached terms to acquire the U.S. and European trust administration business of Bank of America. Terms of the acquisition, which is expected to close next month, were not disclosed.
"This transaction not only affirms U.S. Bank as a leader in the corporate trust industry, it strengthens its strong positions in collateralized debt obligations and commercial and residential mortgage-backed securitizations," said Terrance Dolan, vice chairman of Wealth Management and Securities Services at U.S. Bancorp. "The transaction also establishes a U.S. Bank Corporate Trust Services presence in Europe with offices in Ireland and London, England, while significantly enhancing the U.S. Bank corporate trust presence in Chicago."
U.S. Bank Corporate Trust Services will acquire approximately 2,153 active securitization and related transactions because of the acquisition. It will also receive more than 2.4 million residential mortgage files and 84,000 commercial files, and $1.1 trillion in assets under
administration. Additionally, the transaction is expected to provide U.S. Bank with over $10 billion of deposits.
"U.S. Bank has a history of successful corporate trust acquisitions, having completed 18
acquisitions over the past 20 years, and the company is committed to ensuring a smooth transition,” said Bryan Calder, president of corporate trust services. “Conversion and integration risks are minimized since U.S. Bank and Bank of America utilize similar technology platforms and employ many of the same key vendors."
