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UNION BANK REPORTS SIGNIFICANT GROWTH OF BUSINESS BANKING GROUP IN 2011 AND ANTICIPATES CONTINUED GROWTH IN 2012
For Immediate Release
LOS ANGELES, CA, February 2, 2012 – After experiencing substantial growth of its Business Banking group in 2011, Union Bank, N.A., today announced plans to continue expanding the group in 2012 with a focus on lending. The growth initiative, following a year of almost doubling year-over-year loan volume, will continue into 2012 with aggressive plans to double volume again. The Business Banking group also plans to double its sales force by 2014.
“We’re focused on strong privately held businesses in each of the markets we serve – these businesses are the core of the economy and will lead the economic recovery,” said Union Bank Executive Vice President Todd Hollander, head of Business Banking. “Many business owners have had to defer their capital expenditures in the last few years and are now seeking financing. Our customers are using the bank’s services to navigate the new economy with innovative ways to lower their costs and speed up their cash cycle.”
During 2011, Union Bank’s retail division increased its volume of Small Business Administration (SBA) loans (including 504, 7a and express) substantially over the previous year, despite a challenging economic environment. “We’re committed to the development and growth of our specialized SBA lending unit and, for the first time, Union Bank was recently ranked in the top 10 of SBA 504 lenders for the markets we serve,” said Hollander.
“After being in ‘survival mode’ for the past few years, business owners are turning the corner and reviewing their options for growth,” said Aida Alvarez, the former head of the Small Business Administration during the Clinton Administration and a member of UnionBanCal Corporation’s board of directors. “SBA loans have provided great opportunities for qualified candidates seeking loans for growth and capital improvements.”
Union Bank’s Business Banking group serves the needs of a broad range of businesses of varying sizes. The group offers a variety of products and services for business owners, including deposit solutions, loans, lines of credit, specialized credit programs and online business products.
“We have credit available today for qualified applicants, continuing our uninterrupted record of extending credit to businesses in both challenging and robust economic cycles,” Hollander said. “We continue to look for strong businesses with a proven business model and owners with demonstrated character. We approach each business one at a time to offer customized financial solutions. Union Bank has a nearly 150-year legacy of responsible lending that has led to our continued growth and our customers’ long-term success, and we look forward to continuing to support these businesses.”
In addition to an increase in SBA lending, the percentage of loans made in low-to-moderate income (LMI) geographies and to borrowers with revenues under $1 million also remains strong. In 2008, Union Bank developed its Community-based Financing (CBF) Referral program to help provide loan opportunities to business owners who fall outside of the bank’s lending criteria. Union Bank partners with community-based financing organizations to provide non-traditional financing, with a goal of transitioning the companies into traditional business financing with Union Bank once their companies have grown and matured.
In 1993, Union Bank launched its Business Diversity Lending Program to increase access of business financing to women- and minority-owned businesses in California, Washington and Oregon. In 2006, the program was expanded to include service-disabled veterans and in 2009, all disabled veterans.
About UnionBanCal Corporation & Union Bank, N.A.
Headquartered in San Francisco, UnionBanCal Corporation is a financial holding company with assets of $89.7 billion at December 31, 2011. Its primary subsidiary, Union Bank, N.A., is a full-service commercial bank providing an array of financial services to individuals, small businesses, middle-market companies, and major corporations. The bank operated 414 branches in California, Washington, Oregon, Texas and New York, as well as two international offices, on December 31, 2011. UnionBanCal Corporation is a wholly-owned subsidiary of The Bank of Tokyo-Mitsubishi UFJ, Ltd., which is a subsidiary of Mitsubishi UFJ Financial Group, Inc. Union Bank is a proud member of the Mitsubishi UFJ Financial Group (MUFG, NYSE:MTU), one of the world’s largest financial organizations. Visit www.unionbank.com for more information.