U.S. Bancorp and MUFG Union Bank Announce Sale of Three California Branches to HomeStreet Bank
MINNEAPOLIS & NEW YORK & SEATTLE–(BUSINESS WIRE)–US Bancorp and MUFG Union Bank NA (“MUFG Union Bank”) announced that they have entered into a definitive agreement to sell three former MUFG Union Bank branches in San Bernardino County, California to HomeStreet Bank (“HomeStreet”) . The divestiture of these branches, as directed by the Department of Justice, is tied to US Bancorp’s previously announced acquisition of MUFG Union Bank’s regional core banking franchise.
Under the agreement, MUFG Union Bank branches located at the following addresses will be sold to HomeStreet:
42138 Big Bear Boulevard, Big Bear Lake, CA
17123 Main Street, Hesperia, CA
57500 29 Palms Highway, Yucca Valley, CA
The acquisition by HomeStreet will include deposits, customer relationships, associated loans, real estate owned and fixed assets associated with the branches, as well as branch employees. Under the purchase agreement, HomeStreet will assume approximately $490 million in deposits and purchase approximately $22 million in loans.
“We are pleased to welcome the employees and customers of these branches to our Southern California retail deposit branch network,” said Mark K. Mason, Chairman, President and Chief Executive Officer. from HomeStreet. “The addition of these three branches will bring the total number of HomeStreet branches in Southern California to 20, including four in San Bernardino County. Additionally, this acquisition will increase our customer base by approximately 16,000 customer relationships, and the additional funding will support our strategic growth. We have an exceptional record of customer service and community involvement, and we look forward to positively impacting the new customers and communities we serve.
“HomeStreet is committed to retaining all current Union Bank employees at all three branches upon closing of the transaction. HomeStreet believes that maintaining strong relationships with employees and customers will be critical to the growth and long-term success of branches. HomeStreet will provide additional information to employees and customers of branches that are to be purchased by HomeStreet in the short term. »
The sale is expected to be completed in the first quarter of 2023, subject to regulatory approval of the branch sale and other closing conditions, including the closing of US Bancorp’s acquisition of MUFG’s regional core banking franchise Union Bank.
About US Bancorp:
US Bancorp, with approximately 70,000 employees and $591 billion in assets as of June 30, 2022, is the parent company of the US Bank National Association. The Minneapolis-based company serves millions of customers locally, nationally and globally through a diverse array of businesses: personal and business banking; payment services; Business and corporate banking services; and wealth management and investment services. The company has been recognized for its approach to digital innovation, social responsibility and customer service, including being named one of the 2022 World’s Most Ethical Companies and Fortune’s Most Admired Superregional Bank. Learn more about usbank.com/about.
About MUFG Union Bank:
As of June 30, 2022, MUFG Union Bank, NA operated 297 branches, consisting primarily of retail banking branches in the West Coast states. We offer a wide range of corporate and retail banking and wealth management solutions to meet the needs of our clients. We also offer an extensive portfolio of value-added solutions for our clients, including investment banking, personal and corporate trust, global custody, transaction banking, capital markets and other services. With assets of $124.7 billion as of June 30, 2022, MUFG Union Bank has strong capital reserves, credit ratings and capital ratios compared to peer banks. MUFG Union Bank is a proud member of the Mitsubishi UFJ Financial Group (NYSE: MUFG), one of the world’s largest financial institutions with total assets of approximately 386.9 trillion yen (JPY) or 2.8 trillion dollars (USD)¹, as of June 30, 2022. The headquarters (primary executive office) of MUFG Americas Holdings Corporation, which is the financial holding company, and MUFG Union Bank, is in New York. The main banking office of MUFG Union Bank is in San Francisco, California.
1 Exchange rate of 1 USD=¥136.68 (JPY) as of June 30, 2022.
About HomeStreet Bank:
HomeStreet, Inc. (Nasdaq: HMST) is a diversified financial services company headquartered in Seattle, Washington, serving consumers and businesses in the Western United States and Hawaii. The Company is primarily engaged in real estate lending, including mortgage banking business, and corporate and personal banking. HomeStreet Bank Wins 2022 “Best Small Bank” Award in Washington Newsweek magazine price. Certain information about our business is available on our Investor Relations website, located at http://ir.homestreet.com. HomeStreet Bank is a member of the FDIC and is an Equal Housing Lender.
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding HomeStreet, Inc., HomeStreet Bank, US Bancorp and MUFG Union Bank and the sale of three California branches to HomeStreet Bank. US Bancorp and MUFG Union Bank (together, “US Bank”) and HomeStreet, Inc. and HomeStreet Bank (together “HomeStreet”) intend that these forward-looking statements be covered by the safe harbor provisions for forward-looking statements contained in Private Securities Litigation Reform Act of 1995. Future events are difficult to predict, and the expectations described above are necessarily subject to risks and uncertainties that could cause actual results to differ materially and adversely. Forward-looking statements are based on numerous beliefs, assumptions, estimates and expectations about our future performance, taking into account information currently available to us. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of HomeStreet and US Bank, including the risks and uncertainties associated with the failure of required governmental approvals to obtain or any other closing conditions in the final purchase agreement to be satisfied. You should consider, among other things, the risk factors included in the respective periodic reports of US Bancorp and HomeStreet, Inc. filed with the Securities and Exchange Commission, including, but not limited to, the annual reports most recent US Bancorp and HomeStreet, Inc. Form 10-K reports. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them to reflect changes or events after such date. Neither HomeStreet nor US Bank is responsible for any statements or disclosures regarding any party other than HomeStreet, Inc. and HomeStreet Bank or US Bancorp and MUFG Union Bank, as applicable, that may be contained in this press release.