U.S. Bank announced that it has reached an agreement to acquire the Chicago branch operations of the Charter One Bank franchise owned by RBS Citizens Financial Group. This acquisition will nearly double U.S. Bank's presence in the Chicago region, the bank said.
U.S. Bank said it will will acquire 94 branches with approximately $5.3 billion of deposits, $1.1 billion of loans and 800 employees for a deposit premium of approximately $315 million, or 6 percent. Once the deal is finalized, U.S. Bank will have combined deposits of approximately $11.3 billion in the Chicago area.
RBS Citizens Financial Group Chicago branches will continue to operate under their current name, Charter One, during the transition, and will be re-branded as U.S. Bank branches once the transaction is complete, which is expected in mid-2014.
"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, in a statement.