US Bancorp’s lead bank, US Bank National Association, has acquired the banking subsidiaries of FBOP Corporation, from the Federal Deposit Insurance Corporation (FDIC). This transaction includes nine different banks with more than $18 billion in total assets.
Under the terms of these transactions, US Bank will receive $18.4 billion of assets and assume $18.3 billion of liabilities approximately, including $15.4 billion of both insured and uninsured deposits, of the nine different banks that are part of FBOP.
In addition, substantially all loans are subject to a loss sharing agreement with the FDIC. US Bank will not acquire any additional assets or liabilities of the banks’ parent holding company, FBOP. This acquisition is expected to meet or exceed the company’s internal financial hurdles for internal rate of return and earnings per share accretion.
Rick Hartnack, vice chairman of consumer banking at US Bancorp, said:“This transaction is consistent with the growth strategy, which includes enhancing our existing franchise through low-risk, in-market acquisitions. We also view this type of acquisition as an efficient means of leveraging US Bank’s strong capital base.”
As part of these transactions, US Bank will implement either the FDIC’s or other approved mortgage loan modification programs on certain residential mortgages assumed under the loss share agreement.
The nine banks involved in this transaction will continue to operate under their current names and will be re-branded as US Bank branches in the near future. As a result of this transaction, deposits of all nine banks are now backed by the financial strength and security of US Bank.
