U.S. Bancorp is forging ahead with its strategy of buying parts of other companies rather than acquiring entire banks.
U.S. Bank N.A., a banking unit of U.S. Bancorp, has agreed to buy the Indiana corporate trust business of UMB Bank N.A., a subsidiary of UMB Financial Corp. of Kansas City, Mo. The financial terms of the deal, which is expected to close in early March, were not disclosed.
Richard Davis, the chairman, president and chief executive of U.S. Bancorp, has indicated that the Minneapolis company was more likely to buy bank assets rather than entire banks. He mentioned corporate trust and credit cards as areas where his company sees opportunities.
In December, Elan Financial Services, a unit of U.S. Bancorp, bought the credit card assets of 28 financial institutions from Bank of America's FIA Card Services N.A.
U.S. Bancorp has also acquired a few failed banks during the last few years. It most recently agreed to buy the $272 million-asset BankEast in Knoxville, Tenn., and assume all $268.8 million of deposits. The Tennessee Department of Financial Institutions seized BankEast on Friday.
U.S. Bancorp has $340 billion of assets; UMB has $12.5 billion of assets.
U.S. Bancorp's global corporate trust has more than $4 trillion of assets under administration in municipal, corporate, asset-backed and international , according to a news release. A U.S. Bancorp spokesman declined to say how big UMB's Indiana corporate trust business is.