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The Minneapolis company has inked a deal to buy 105 Chicago-area branches of Citizens Financial Group, the U.S. bank owned by Royal Bank of Scotland Group PLC, Crain's Chicago Business reported Monday.
January 6 -
Royal Bank of Scotland has accelerated its plans to sell its U.S. subsidiary. The company will conduct a partial initial public offering of its Citizens Financial Group unit in the second half of 2014, and plans to fully divest itself through offerings in 2015 and 2016.
November 1 -
Too-big-too-fail worries in the U.S. make the full sale of Royal Bank of Scotland's Citizens Financial Group in Providence, R.I., highly unlikely, despite speculation about potential buyers.
February 25 -
Royal Bank of Scotland is said to be looking for a buyer for its 105-branch network in Chicago, but finding a buyer might be difficult because of market conditions and regulatory issues.
October 4
U.S. Bancorp (USB) in Minneapolis has agreed to buy the Chicago branches of RBS Citizens Financial Group, a deal that would double its deposit share in the Windy City.
U.S. Bancorp would acquire 94 branches, which do business as Charter One; about 800 employees; and the branches' small business operations and certain middle-market relationships, the two companies said.
Word of an agreement
U.S. Bancorp agreed to pay a deposit premium of approximately $315 million, or 6%, to acquire $5.3 billion of deposits, and will also acquire about $1.1 billion in loans. About 35% of the deposits are non-interest bearing and NOW accounts, 48% are money market and savings accounts and 17% are time deposits, U.S. Bancorp said.
The deal would give U.S. Bancorp about $11.3 billion in deposits in the Chicago area, which would be the eighth most of any bank in the area, according to data from the Federal Deposit Insurance Corp. The $361 billion-asset company had about 90 branches and deposits of $6 billion in the region as of June 30, according to the FDIC.
The deal would allow Citizens, the U.S. unit of the Royal Bank of Scotland, to focus on its primary markets, it said in the news release. The $120 billion-asset company would retain a presence in Chicago through certain commercial business lines following the sale, it said.
RBS has announced that it plans to sell Citizens through a series of stock offerings in the next three years. Before RBS announced plans for the
RBS announced in October that it was
