Simultaneously, U.S. Bank has also assumed all of the deposits and assets of eight other banking subsidiaries of FBOP from the FDIC. The nine banks were closed on October 30, 2009 by federal and state bank regulators, which appointed the FDIC as receiver. These eight banks include, California National Bank, Citizens National Bank, Madisonville State Bank, North Houston Bank, Pacific National Bank, Park National Bank, Bank USA, National Association and Community Bank of Lemont.

As of September 30, 2009, the banks had combined assets of $19,400 million and deposits of $15,400 million. Under the terms of the transactions, U.S. Bank will receive approximately $18,400 million of assets and assume approximately $18,300 million of liabilities, including $15,400 million of both insured and uninsured deposits, of the nine different banks that are part of FBOP.

In addition, the FDIC and U.S. Bank have entered into a loss-share transaction on approximately $14,400 million of the combined purchased assets of $18,200 million. U.S. Bank will share in the losses on the asset pools covered under the loss-share agreement.

Deal Type    Acquisition
Sub-Category Asset Purchase
Deal Status  Completed: 2009-10-30

Deal Participants

Target (Company)   San Diego National Bank - Deposits and Assets
Acquirer (Company) U.S. Bank N.A.
Vendor (Company)   Federal Deposit Insurance Corporation

Deal Rationale

The acquisition is consistent with the growth strategy of U.S. Bancorp, which includes enhancing its existing franchise through low-risk, in-market acquisitions. The transaction adds scale to U.S. Bancorp's current California, Illinois and Arizona footprints in the US and key markets within these states. The acquisition is an efficient means of leveraging U.S. Bank's strong capital base, as U.S. Bancorp further expands opportunities to bring its products and services to a new, larger customer base.

Minneapolis-based U.S. Bancorp ("USB"), with $265 billion in assets as of September 30, 2009, is the parent company of U.S. Bank National Association, the 6th largest commercial bank in the United States. The company operates 2,851 banking offices and 5,175 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.

SOURCE: U.S. Bancorp

U.S. Bancorp 
Judith T. Murphy, Investor Relations, 612-303-0783 
or 
Steve Dale, Media Relations, 612-303-0784

Simultaneously, U.S. Bank has also assumed all of the deposits and assets of eight other banking subsidiaries of FBOP from the FDIC. The nine banks were closed on October 30, 2009 by federal and state bank regulators, which appointed the FDIC as receiver. These eight banks include, California National Bank, Citizens National Bank, Bank USA, National Association, North Houston Bank, Pacific National Bank, Park National Bank, San Diego National Bank and Community Bank of Lemont.

As of September 30, 2009, the banks had combined assets of $19,400 million and deposits of $15,400 million. Under the terms of the transactions, U.S. Bank will receive approximately $18,400 million of assets and assume approximately $18,300 million of liabilities, including $15,400 million of both insured and uninsured deposits of the nine different banks that are part of FBOP.

In addition, the FDIC and U.S. Bank have entered into a loss-share transaction on approximately $14,400 million of the combined purchased assets of $18,200 million. U.S. Bank will share in the losses on the asset pools covered under the loss-share agreement.

Deal Type    Acquisition
Sub-Category Asset Purchase
Deal Status  Completed: 2009-10-30

Deal Participants

Target (Company)   Madisonville State Bank - Deposits and Assets
Acquirer (Company) U.S. Bank N.A.
Vendor (Company)   Federal Deposit Insurance Corporation

Deal Rationale

The acquisition is consistent with the growth strategy of U.S. Bancorp, which includes enhancing its existing franchise through low-risk, in-market acquisitions. The transaction adds scale to U.S. Bancorp's current California, Illinois and Arizona footprints in the US and key markets within these states. The acquisition is an efficient means of leveraging U.S. Bank's strong capital base, as U.S. Bancorp further expands opportunities to bring its products and services to a new, larger customer base.

At the time, FBOP had seen more than $800 million of the preferred stock it held in Fannie and Freddie wiped out.

With the acquisition of the failed bank, U.S. Bank becomes the 11th-largest bank in the Chicago area, growing from 57 to 87 branches and increasing its deposits from $2.4 billion to $5.8 billion, Crain's reported.

FBOP locations, among them Park National Bank's 30 branches, were to open Saturday as U.S. Bank branches.

Michael Kelly, chief executive officer of FBOP, notified bank executives in an internal memo late Friday of the bank's closing, a source told Crain's.

Kelly, 64, had started the bank company in 1981 with the acquisition of First Bank of Oak Park and expanded during the savings and loan crisis of the late 1980s and early 1990s, buying branches, assets and deposits of troubled banks.

www.upi.com