U.S. Bank has bought all of RBS Citizen Financial Group Inc.'s retail branches in the Chicago area, including local Charter One banks.
Charter One has branches in Calumet City, Chicago Heights and Homewood, as well as ATMs in Speedway gas stations all throughout Northwest Indiana.
U.S. Bank is doubling its market share in the Chicago metro area by buying Charter One's Chicago retail branch network, small business operations and some of its middle market relationships.
"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.
Minneapolis-based U.S. Bank, the fifth-largest commercial bank in the United States, will buy 94 branches, $5.3 billion of deposits, $1.1 billion of loans for a 6 percent deposit premium of $315 million. Almost all of the 800 Charter One employees will be transferred to or offered similar jobs at U.S. Bank.
"Chicago is a vibrant and important market for U.S. Bank," said Marsha Cruzan, Chicago market president. "We've worked hard to grow our presence here over the past five years and this latest acquisition strengthens our position as a top bank in the Chicago area."
The deal allows Rhode Island-based RBS Citizen Financial Group to focus on primary markets for Charter One and Citizens Bank. The bank will still maintain a presence in the Chicago area, including by offering commercial banking services.
"This transaction will allow us to focus our efforts on our primary Citizens Bank and Charter One markets where we have stronger market positions and better long-term growth prospects," said CEO Bruce Van Saun. "We have a number of business growth initiatives and enhancements to the customer experience in flight that position us well for the future. We feel that U.S. Bank is a good buyer of our Chicago region branch-based business, and we will work hard to ensure a smooth transition for our customers and colleagues who will be going to U.S. Bank."
Federal regulators must approve the deal, which is expected to close in mid-2014.