U.S. Bancorp (NYSE: USB - News) announced today that, effective immediately, its lead bank, U.S. Bank National Association, has acquired the banking subsidiaries of FBOP Corporation of Oak Park, Illinois, from the Federal Deposit Insurance Corporation. This transaction includes nine different banks with more than $18 billion in total assets and 150 branches in California, Illinois, Arizona and Texas. The nine banks that are part of this acquisition are: BankUSA, N.A.; California National Bank; Citizens National Bank; Madisonville State Bank; North Houston Bank; Pacific National Bank; Park National Bank; San Diego National Bank; and Community Bank of Lemont.

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Under the terms of these transactions, U.S. Bank will receive approximately $18.4 billion of assets and assume approximately $18.3 billion of liabilities, including $15.4 billion of both insured and uninsured deposits, of the nine different banks that are part of FBOP.

In addition, substantially all loans are subject to a loss sharing agreement with the FDIC. U.S. Bank will not acquire any additional assets or liabilities of the banks’ parent holding company, FBOP Corporation. This acquisition is expected to meet or exceed the company’s internal financial hurdles for internal rate of return and earnings per share accretion.

“This transaction is consistent with the growth strategy that we have outlined many times in the past, which includes enhancing our existing franchise through low-risk, in-market acquisitions,” noted Rick Hartnack, vice chairman of consumer banking for U.S. Bancorp. “This transaction adds scale to our current California, Illinois and Arizona footprints and key markets within these states. We also view this type of acquisition as an efficient means of leveraging U.S. Bank’s strong capital base, as we further invest in our company and expand opportunities to bring our great products and services to a new, larger customer base.”

As part of these transactions, U.S. Bank will implement either the FDIC’s or other approved mortgage loan modification programs on certain residential mortgages assumed under the loss share agreement. The objectives of these programs are to improve affordability, increase the probability of performance, and allow borrowers to remain in their homes.