Photo credit: GoogleHESPERIA – The US Department of Justice (DOJ) ordered the sale of three San Bernardino County US Bank locations – Hesperia, Big Bear Lake and Yucca Valley, to address concerns about antitrust law violations that could result from an overconcentration of offices.
Antitrust laws prohibit unlawful mergers and business practices.
US Bancorp is in the process of acquiring MUFG Union Bank. The DOJ, Antitrust Division is required to “evaluate the competitive effects of mergers, acquisitions, and other transactions when determining whether to approve these applications.”
MUFG Union Bank currently operates nine branches in San Bernardino County. When the DOJ determines that a merger or acquisition will result in anti-competitiveness, a Letter of Agreement is issued and “sets forth the terms and conditions of a divestiture agreement.”
In this case, it was determined that three branches must be sold.
HomeStreet will buy the three branches which will make a total of 20 Southern California branch locations for the Seattle-based bank. This will also add about $490 million of deposits and about $22 million of loans, in addition to 16,000 new customer relationships and the real estate and fixed assets tied to the branches.
Employees of the branches – a combined 25 people, will be remain.
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“We are happy to welcome the employees and customers of these branches to our network of retail deposit branches in Southern California,” said HomeStreet’s Chairman of the Board, President, and Chief Executive Officer Mark K. Mason.
In connection to the acquisition, U.S. Bancorp has pledged to spend $100 billion over five years on community reinvestment in lower-income neighborhoods and communities of color.
The sale is expected to close in the first quarter of 2023, subject to regulatory approval of the branch sale and other closing conditions
For more information on the sale of three US Bank branches visit https://www.usbank.com/about-us-bank/company-blog/article-library/summary-of-dojs-letter-of-agreement-with-us-bancorp-and-mufg-union-bank.html
