U.S. Bank To Acquire Biz From Ally Bank
Minneapolis-based U.S. Bank announced Monday that it has agreed to purchase Ally Bank’s document custodian business for an undisclosed sum.
The deal is expected to close early in the second quarter of 2014. U.S. Bank said the deal will add 40 employees to the company and one new service location in Waterloo, Iowa—retaining the office and employees previously under the Ally banner.
U.S. Bank currently operates a network of 49 document custody locations in the United States—as well as three international locations.
Document custodians store and safeguard critical collateral loan files such as commercial and residential mortgages, equipment leases, and home equity loans. The deal will increase the number of documents under U.S. Bank’s custody by 15 percent.
“We are happy to have this opportunity to retain jobs in the Waterloo area and show our continued dedication to the community and to helping support the local job market,” Dan Watters, the community banking division head for U.S. Bank in Iowa, said in a statement.
Ally Bank, which is headquartered in Utah but primarily functions online, is a subsidiary of Detroit-based Ally Financial, Inc.
Recently, Ally Financial announced the pricing for its initial public offering at $25 per share, the initial value is about $2.38 billion.
U.S. Bancorp, U.S. Bank’s parent company, is the fifth largest commercial bank in the United States. As of December 31, the company has $364 billion in assets and operates 3,081 banking offices in 25 states.