San Francisco-based Union Bank, N.A., the primary subsidiary
of UnionBanCal Corporation, announced a deal to acquire deposits
and certain assets of Vallejo, Calif.-based First Bank
Association Bank Services - a unit of First Bank. UnionBanCal
Corp. is a fully owned subsidiary of
Mitsubishi UFJ Financial Group Inc.
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The deal's financial details were not disclosed and it is still
subject to the approval of the banking regulators and other
customary closing conditions. The deal is anticipated to close at
the end of 2013.
First Bank provides a wide range of services to homeowners'
associations and community management companies. It has deposits
of over $500 million as of Mar 31, 2013, with the customers
mainly based in Calif.
Over the last several years, Mitsubishi UFJ has been striving
hard to expand inorganically. The company's primary intention is
to increase revenues to partly offset the persistent lower loan
demand in Japan. In Apr 2013, Mitsubishi UFJ announced a deal to
acquire commercial real estate (CRE) lending portfolio and
platform from PB Capital Corporation - a wholly owned subsidiary
Deutsche Bank AG
In Dec 2012, Mitsubishi UFJ also purchased the remaining 49%
stake in joint venture with
Bank of America Corp.
) and completed the acquisition of Santa Barbara-based Pacific
Capital Bancorp. In Oct 2012, it closed the acquisition of
Atlanta-based Smartstreet, a financial services division of
PNC Financial Services Group Inc.
The completion of the latest acquisition will ensure a wider and
improvised range of products, which will lead to Mitsubishi UFJ's
expansion in the industry.
Currently, Mitsubishi UFJ carries a Zacks Rank #2 (Buy).