U.S. Bank National Association, a subsidiary of U.S. Bancorp, agreed to purchase Union Bank's institutional trust business providing services to corporate retirement plans, confirmed Jeff Kerr, president of the institutional trust and custody division of U.S. Bank.
Terms of the transaction were not disclosed; the deal was closed Wednesday.. Union Bank's custody division was not part of the acquisition.
The U.S. Bank institutional trust and custody division will acquire client relationships representing $42 billion in assets under administration. Mr. Kerr said. U.S. Bank's division has about $700 billion in assets under administration for its trust and custody business.
“It's a strategic play for us that increases our scale and customer relationships in California,” Mr. Kerr said in a telephone interview.
U.S. Bank anticipates retaining many of the key Union Bank relationship staff in current market locations, Mr. Kerr said.
Union Bank is a subsidiary of UnionBanCal.
