On Monday, San Francisco-based Union Bank, N.A., the primary subsidiary of UnionBanCal Corporation, announced the completion of the acquisition 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).
Union Bank will take over deposits and certain assets of First Bank Association Bank Services. The deal’s financial details were not disclosed.
First Bank provides a wide range of services to homeowners’ associations and community management companies. It has deposits of over $550 million as of Sep 30, 2013, with the customers mainly based in California.
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).
In Dec 2012, Mitsubishi UFJ also purchased the remaining 49% stake in a joint venture with Bank of America Corp. (BAC) 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). In 2011, Mitsubishi UFJ acquired Klik Technologies.
The latest acquisition will ensure a wider and improvised range of products, which will aid Mitsubishi UFJ expand its foothold in the industry. Currently, Mitsubishi UFJ carries a Zacks Rank #3 (Hold).