Already a leading provider of banking services to homeowners' associations on the West Coast, Union Bank in San Francisco has struck a deal to take the niche business nationwide.
The $92.3 billion-asset unit of UnionBanCal announced Wednesday that it is buying Smartstreet, an Atlanta-based firm that provides banking services to homeowners' associations, from its current owner, PNC Financial Services Group (PNC). Pittsburgh-based PNC inherited SmartStreet when it bought RBC Bank USA from Royal Bank of Canada in March.
Union Bank, which is owned by The Bank of Tokyo-Mitsubishi UFJ, is primarily a regional bank but it has made no secret of its desire to expand beyond the West Coast. Smartstreet manages roughly $1 billion of deposits and provides receivables, lockbox and other banking services to more than 460 management companies and 15,000 homeowners' associations in 36 states.
"The acquisition of Smartstreet supports Union Bank's strategy of nationwide growth," Union Bank President and Chief Executive Masashi Oka said in a news release. "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."
Union Bank said it expects the sale to close in the fall. It did not disclose a deal price. The bank said that SmartStreet would retain its name and its executive team.