US Bank Acquires First Community Bank
Under the terms of this transaction, US Bank will receive approximately $2.1 billion of assets and assume approximately $2.1 billion of liabilities, including $1.8 billion of insured and uninsured deposits, of First Community Bank. US Bank National Association is lead bank of US Bancorp.
US Bank will not acquire any assets or liabilities of First Community Bankâ€™s parent holding company, First State Bancorporation.
The acquisition of the banking operations of First Community Bank is structured as a whole bank purchase and assumption transaction without a loss share agreement. US Bank has conducted extensive credit due diligence, and purchased First Community Bank for an asset discount of approximately $380m. The transaction exceeds all internal hurdles for financial returns with very conservative loan loss assumptions.
All First Community Bank branches will continue to operate under their current name and will be re-branded as US Bank branches in the near future.
First Community Bank customers should continue to conduct their banking as they have in the past. US Bank will soon be providing additional information to First Community Bank customers about this transaction. First Community Bank customer deposits are now backed by the financial strength and security of US Bank.
John Elmore, executive vice president of community banking at US Bank, said: â€œThis acquisition is an extension of US Bank's banking franchise into its 25th contiguous state, and it immediately establishes us as one of the top three banks in terms of market share in the attractive New Mexico market.
â€œIt is a great fit for both companies since First Community Bank and US Bank share a similar community banking model which will help to ensure a smooth transition for customers and employees.â€
How far the acquisition benefits US Bank?
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