U.S. Bancorp (NYSE: USB) announced today that its lead bank, U.S. Bank N.A., has reached agreement to acquire the corporate trust bond administration business of AmeriServ Financial, Inc. (NASDAQ: ASRV).
Bryan Calder, president of U.S. Bank Corporate Trust Services, commented, “This acquisition exemplifies U.S. Bank’s ongoing commitment to continued strategic business investments during these difficult economic times. The acquisition complements the existing U.S. Bank corporate trust business and will strengthen our competitive position as a leading national trustee for new municipal issuances. It also increases market share and reflects U.S. Bank’s standing as a leading corporate trust provider in the Pennsylvania market. Through our existing offices in Philadelphia and Pittsburgh, Pennsylvania, we are committed to providing our new customers with the same high level of quality services our current U.S. Bank corporate trust customers have come to expect. The U.S. Bank team will work with AmeriServ to ensure a seamless transition for the customers.”
AmeriServ Financial, Inc. made the decision to exit the corporate trust bond administration business as a result of the highly specialized nature of the business, and the growing costs of administration which have become prohibitive for regional trust companies. Ronald Virag, president and chief executive officer for AmeriServ Trust and Financial Services Company stated, “AmeriServ has elected to exit this line of business and focus our talent and resources to serving personal trust, retirement services and other lines of trust business.”
Upon completion of this transaction, U.S. Bank’s corporate trust division will have $2.1 trillion in assets under administration, nearly 670,000 bondholders and more than 102,000 client issuances. This acquisition reflects U.S. Bank’s ongoing commitment to the corporate trust industry and to remaining a leader in the area of tax-exempt debt and a top-tier provider in new corporate bond issuances and asset-backed and mortgage-backed securitizations.
Currently, U.S. Bank has 46 corporate trust offices across the country and offers a complete line of trust services. U.S. Bank serves as trustee and paying agent for the issuance of taxable and non-taxable securities, including the review of documents and indentures, registration and authentication of bonds, receipts and disbursement of bond sale proceeds, successor trusteeships, escrow account services and transfer and paying agency services. Also, U.S. Bank provides mortgage-backed and asset-backed securitizations, money market paying agency services, bond and tax administration, escrow services, claims administration services and document custody services.
U.S. Bancorp, with $266 billion in assets, is the parent company of U.S. Bank, the 6th largest commercial bank in the United States. The company operates 2,791 banking offices and 5,164 ATMs in 24 states, and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. Visit U.S. Bancorp on the web at usbank.com.