U.S. Bancorp said it will acquire the Chicago branch banking operations of the Charter One Bank franchise owned by RBS Citizens Financial Group.
The acquisition, which will fall under the Minneapolis-based bank group's U.S. Bank National Association, includes Charter One's Chicago retail branch network, small business operations, and select middle market relationships. Once complete, the acquisition will nearly double U.S. Bank's deposit market share in the Chicago metro area, the company said in a release.
Under the terms, U.S. Bank will acquire approximately $5.3 billion of deposits, $1.1 billion of loans, 94 branches, and 800 employees for a deposit premium of approximately $315 million, or 6 percent. At close, U.S. Bank will have combined deposits of approximately $11.3 billion in Chicago. Approximately 35 percent of the $5.3 billion of acquired deposits are noninterest bearing and NOW accounts; 48 percent are money market and savings accounts; and 17 percent are time deposits.
"This transaction will double our market share in Chicago, giving us a great opportunity to not only deepen existing customer relationships, but a chance to serve new customers with our extensive mix of products and services," said John Elmore, vice chairman of community banking and branch delivery for U.S. Bank.
The transaction is subject to regulatory approval and is anticipated to close in mid-2014.