Back to top

Analyst Blog

San Francisco-based Union Bank, N.A., the primary subsidiary of UnionBanCal Corporation, announced a deal to acquire deposits and certain assets of Vallejo, Calif.-based First Bank Association Bank Services – a unit of First Bank. UnionBanCal Corp. is a fully owned subsidiary of Mitsubishi UFJ Financial Group Inc. (MTU - Analyst Report).

The deal’s financial details were not disclosed and it is still subject to the approval of the banking regulators and other customary closing conditions. The deal is anticipated to close at the end of 2013.

First Bank provides a wide range of services to homeowners’ associations and community management companies. It has deposits of over $500 million as of Mar 31, 2013, with the customers mainly based in Calif.

Over the last several years, Mitsubishi UFJ has been striving hard to expand inorganically. The company’s primary intention is to increase revenues to partly offset the persistent lower loan demand in Japan. In Apr 2013, Mitsubishi UFJ announced a deal to acquire commercial real estate (CRE) lending portfolio and platform from PB Capital Corporation – a wholly owned subsidiary of Deutsche Bank AG (DB - Analyst Report).

In Dec 2012, Mitsubishi UFJ also purchased the remaining 49% stake in joint venture with Bank of America Corp. (BAC - Analyst Report) and completed the acquisition of Santa Barbara-based Pacific Capital Bancorp. In Oct 2012, it closed the acquisition of Atlanta-based Smartstreet, a financial services division of PNC Financial Services Group Inc. (PNC - Analyst Report).

The completion of the latest acquisition will ensure a wider and improvised range of products, which will lead to Mitsubishi UFJ’s expansion in the industry.

Currently, Mitsubishi UFJ carries a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%