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 - Free 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 - Free Report) .
In Dec 2012, Mitsubishi UFJ also purchased the remaining 49% stake in joint venture with Bank of America Corp. (BAC - Free 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 - Free 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).