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UNION BANK TO ACQUIRE SMARTSTREET



For Immediate Release
 

Contacts: 
Joanne Curran
(213) 236-5017
Joanne.Curran@unionbank.com



Strategic Acquisition to Enhance Union Bank’s standing as
Leading National Bank to Homeowners Associations and Provider of Comprehensive Receivables Solutions

SAN FRANCISCO – May 9, 2012 – Union Bank, N.A., today announced it has signed a definitive agreement with PNC Bank, N.A. (NYSE: PNC), to acquire Smartstreet®, an Atlanta-based financial services division of PNC Bank that provides banking services nationwide to homeowners associations and community association management companies. The acquisition, which requires approval from banking regulators and is subject to other customary closing conditions, is expected to be completed in the fall. Terms of the agreement were not disclosed.

Smartstreet is a market leader in community associations banking with approximately $1 billion in deposits and a comprehensive receivables offering and lockbox operations that serve more than 460 management companies and 15,000 associations in 36 states.

Union Bank’s President and Chief Executive Officer Masashi Oka said, “The acquisition of Smartstreet supports Union Bank’s strategy of nationwide growth. It will enhance our position as a leader in providing banking services to a niche industry where we have a deep knowledge and a long track record of providing excellent service. Providing financial services to companies that manage homeowners associations and other community associations is a core segment for Union Bank’s Global Treasury Management, and we’re already the leading provider on the West Coast.

“HOA banking is a valuable source of long-term core deposits. This is a great example of how Union Bank’s strong and stable balance sheet allows us to pursue opportunities that will provide immediate benefits and support responsible future plans,” Oka added.

Union Bank Senior Executive Vice President JoAnn Bourne, head of the bank’s Global Treasury Management group, said, “The acquisition of Smartstreet, in addition to our recent acquisition of Klik Technologies, clearly demonstrates Union Bank’s commitment to a best-in-class comprehensive receivables offering. This acquisition will provide immediate and long-term benefits for Union Bank because of Smartstreet’s strong base of core deposits, its sizable and well regarded HOA banking franchise, and the opportunity to leverage the strengths of Union Bank, Klik Technologies, and Smartstreet, for comprehensive receivables and national lockbox processing synergies.”

Smartstreet’s product suite includes banking and account management; payment processing; lockbox services and remote deposit capture; loans and lines of credit; and credit card services. It provides online technology tools for customized processing and reporting for homeowners associations and HOA managers, as well as data integration and information reporting.

According to Bourne, Smartstreet will operate as a division of Union Bank and will retain its Smartstreet brand in the HOA markets and its executive team.

“Once complete, this transaction will combine two great teams that know what it takes to be successful in this niche business by offering an even more formidable suite of products and creating a deep and broad client portfolio across the United States,” said President of Smartstreet, Robin Storey. “We will have an opportunity to build an organization that is truly greater than the sum of its parts and in the process, become an industry leader providing banking services to management companies and the associations they serve.”

Union Bank was advised by RBC Capital Markets and the law firm of Bingham McCutchen LLP.



About UnionBanCal Corporation & Union Bank, N.A.
Headquartered in San Francisco, UnionBanCal Corporation is a financial holding company with assets of $92.3 billion at March 31, 2012. 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 operates 407 branches in California, Washington, Oregon, Texas, New York and Illinois, as well as two international offices. 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.

About PNC
The PNC Financial Services Group, Inc. (www.pnc.com) is one of the nation’s largest diversified financial services organizations providing retail and business banking; residential mortgage banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management.