US Bank, the lead bank of US Bancorp, has agreed to acquire the bond and transfer agent business of First National Trust Company, a subsidiary of First National Bank of Pennsylvania (FNB).
FNB made the decision to exit the corporate trust bond administration business as a result of the highly specialized nature of the business and the growing costs of administration which have become prohibitive for regional trust companies.
After the completion of the transaction, US Bank’s corporate trust division is expected to have $2.9 trillion in assets under administration, nearly 604,687 bondholders and more than 112,797 client issuances.
First National Trust Company senior vice president and managing executive David Buckiso said that the company will continue to focus and maintain commitment to its more traditional trust, investment management and qualified plan services.
US Bank Corporate Trust Services president Bryan Calder said that the acquisition complements the existing US Bank corporate trust business and will strengthen competitive position as a leading national trustee for new municipal issuances.
“It also increases market share and reflects US Bank’s standing as a leading corporate trust provider in the Western Pennsylvania market. The US Bank team will work with First National Trust Company to ensure a seamless transition for their customers,” Calder said.