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8-K - FORM 8-K - US BANCORP \DE\ | c11652e8vk.htm |
EX-99.2 - EXHIBIT 99.2 - US BANCORP \DE\ | c11652exv99w2.htm |
Exhibit 99.1
News Release |
CONTACT: | Steve Dale (Media) (612) 303-0784 | |||
Judith T. Murphy (Analysts) (612) 303-0783 |
U.S. BANK ACQUIRES FIRST COMMUNITY BANK
THROUGH AN FDIC FACILITATED TRANSACTION
THROUGH AN FDIC FACILITATED TRANSACTION
MINNEAPOLIS (January 28, 2011) U.S. Bancorp (NYSE: USB) announced today that, effective
immediately, its lead bank, U.S. Bank National Association, has acquired the banking operations of
First Community Bank, a subsidiary of First State Bancorporation (Pink Sheets: FSNM), from the
Federal Deposit Insurance Corporation (FDIC).
Under the terms of this transaction, U.S. Bank will receive approximately $2.1 billion of assets
and assume approximately $2.1 billion of liabilities, including $1.8 billion of insured and
uninsured deposits, of First Community Bank. U.S. Bank will not acquire any assets or liabilities
of First Community Banks parent holding company, First State Bancorporation, headquartered in
Albuquerque, New Mexico.
This acquisition is an extension of U.S. Banks banking franchise into its 25th contiguous state,
and it immediately establishes us as one of the top three banks in terms of market share in the
attractive New Mexico market. It is a great fit for both companies since First Community Bank and
U.S. Bank share a similar community banking model which will help to ensure a smooth transition for
customers and employees, noted John Elmore, executive vice president of community banking at U.S.
Bank. Our community banking strategy has proven to be very successful and includes local decision
making, strong community involvement and leadership combined with the consumer and business banking
products and services of the nations fifth largest bank. This purchase of 38 First Community Bank
branches in New Mexico (35 branches) and Arizona (3 branches) presents a great opportunity for us
to deepen customer relationships by offering U.S. Banks extensive mix of products and services to
more than 50,000 new deposit customers, and we expect to increase our presence further in this new
state through future de novo branch expansion.
The acquisition of the banking operations of First Community Bank is structured as a whole bank
purchase and assumption transaction without a loss share agreement. U.S. Bank conducted extensive
credit due diligence, and purchased First Community Bank for an asset discount of approximately
$380 million. The transaction exceeds all internal hurdles for financial returns with very
conservative loan loss assumptions.
All First Community Bank branches will continue to operate under their current name and will be
re-branded as U.S. Bank branches in the near future. First Community Bank customers should
continue to conduct their banking as they have in the past. U.S. Bank will soon be providing
additional information to First Community Bank customers about this transaction. First Community
Bank customer deposits are now backed by the financial strength and security of U.S. Bank.
If customers of First Community Bank have any questions regarding their accounts involved in this
transaction, they should contact their local branch, visit www.fcbnm.com or use their typical
customer service channels.
Additional information regarding this transaction is included in a brief presentation posted on the
U.S. Bank website. To access the presentation, please go to www.usbank.com and click on About
U.S. Bank and then click on Press Releases under the Media Relations heading located on the
bottom of the page.
U.S. Bancorp, with $308 billion in assets as of Dec. 31, 2010, is the parent company of U.S. Bank,
the fifth largest commercial bank in the United States. The company operates 3,031 banking offices
in 24 states and 5,310 ATMs 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 www.usbank.com.
# # #
Forward-Looking Statements
The following information appears in accordance with the Private Securities Litigation Reform Act
of 1995:
This press release contains forward-looking statements about U.S. Bancorp. Statements that are not
historical or current facts, including statements about beliefs and expectations, are
forward-looking statements and are based on the information available to, and assumptions and
estimates made by, management as of the date made. These forward-looking statements cover, among
other things, anticipated future revenue and expenses and the future plans and prospects of U.S.
Bancorp. Forward-looking statements involve inherent risks and uncertainties, and important factors
could cause actual results to differ materially from those anticipated. Global and domestic
economies could fail to recover from the recent economic downturn or could experience another
severe contraction, which could adversely affect U.S. Bancorps revenues and the values of its
assets and liabilities. Global financial markets could experience a recurrence of significant
turbulence, which could reduce the availability of funding to certain financial institutions and
lead to a tightening of credit, a reduction of business activity, and increased market volatility.
Stress in the commercial real estate markets, as well as a delay or failure of recovery in the
residential real estate markets, could cause additional credit losses and deterioration in asset
values. In addition, U.S. Bancorps business and financial performance is likely to be impacted by
effects of recently enacted and future legislation and regulation. U.S. Bancorps results could
also be adversely affected by continued deterioration in general business and economic conditions;
changes in interest rates; deterioration in the credit quality of its loan portfolios or in the
value of the collateral securing those loans; deterioration in the value of securities held in its
investment securities portfolio; legal and regulatory developments; increased competition from both
banks and non-banks; changes in customer behavior and preferences; effects of mergers and
acquisitions and related integration; effects of critical accounting policies and judgments; and
managements ability to effectively manage credit risk, residual value risk, market risk,
operational risk, interest rate risk and liquidity risk. Finally, there can be no assurance that we
will realize the anticipated benefits of the acquisition of the banking subsidiaries of First State
Bancorporation.
For discussion of these and other risks that may cause actual results to differ from expectations,
refer to U.S. Bancorps Annual Report on Form 10-K for the year ended December 31, 2009, on file
with the Securities and Exchange Commission, including the sections entitled Risk Factors and
Corporate Risk Profile contained in Exhibit 13, and all subsequent filings with the Securities
and Exchange Commission under Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of
1934. Forward-looking statements speak only as of the date they are made, and U.S. Bancorp
undertakes no obligation to update them in light of new information or future events.