U.S. Bank corporate trust division expected to have $2.4 trillion in assets under administration upon completion of the transaction
U.S. Bank National Association, a subsidiary bank of U.S. Bancorp, has entered into a definitive agreement to purchase the bond trustee business of First Citizens Bank, a subsidiary of First Citizens BancShares.
Reportedly, upon completion of this transaction, U.S. Bank’s corporate trust division will have $2.4 trillion in assets under administration, 725,000 bondholders and more than 114,000 client issuances.
Diane Thormodsgard, vice chair of U.S. Bancorp wealth management & securities services, said: “This transaction complements the existing U.S. Bank bond trustee business in North Carolina, South Carolina and Virginia, and strengthens our competitive position as a leading national trustee for new municipal issuances. The U.S. Bank team will work closely with First Citizens Bank to ensure a seamless transition and is committed to providing our new customers with the same high level of quality services our current U.S. Bank bond trustee customers have come to expect.”
Gene Lewis, senior vice president and manager of institutional advisory services at First Citizens, said: “After due consideration of the bank’s strategic goals for the future, First Citizens made the decision to exit the bond trustee business to focus on strengths in other areas of our institutional business, including institutional asset management, qualified retirement plans, institutional custody, escrow and stock transfer. U.S. Bank has a strong, proven track record in this business and will continue to provide outstanding services to our bond trustee clients.”