Union Bank, a primary subsidiary of California-based UnionBanCal, has acquired certain assets and assumed certain liabilities of Washington-based Frontier Bank in a purchase and assumption agreement with the Federal Deposit Insurance Corporation (FDIC).
Union Bank acquired approximately $3.2bn in total assets, including approximately $2.8bn in loans and other real estate owned, which are covered under a loss-share agreement with the FDIC. Union Bank also assumed approximately $2.5bn in deposits.
The acquisition follows a decision by the Washington State Department of Financial Institutions to close Frontier Bank and appoint the FDIC as receiver.
The former Frontier Bank has 47 branch offices in Washington, and three branch offices in Oregon: Portland, Salem and Tigard, and a loan production office in Keizer, Oregon.
Frontier Bank’s branches will reopen as Union Bank branches. The depositors of Frontier Bank will automatically become depositors of Union Bank and the deposits will continue to be insured by the FDIC. Moreover, Frontier Bank customers can continue to use their existing branches, pending the integration of the two organizations’ systems.
Masaaki Tanaka, president and CEO of Union Bank, said: “We have been looking for the right opportunity to expand in the region for some time and Frontier Bank’s commercial and consumer businesses match well with our own, particularly in retail and corporate banking, and wealth management. Our efforts to grow in the region will be balanced by our deep commitment to employees, customers and the communities we serve.”
UnionBanCal is a wholly-owned subsidiary of The Bank of Tokyo-Mitsubishi UFJ, which is a subsidiary of Japan-based Mitsubishi UFJ Financial Group.