Union Bank in San Francisco is expanding its services for homeowners' associations.
The $97 billion-asset bank said Tuesday that it had agreed to buy First Bank Association Bank Services in Vallejo, Calif.; the price was not disclosed.
First Bank Association Services, a unit of First Banks in St. Louis, manages roughly $550 million in deposits and offers lending, investment and other services to community associations nationwide, though most of its customers are in California.
The sale, which is expected to close this fall, would add to Union Bank's portfolio of businesses that serve homeowner associations and community management companies.
In October, Union Bank bought Smartstreet, which also offers banking services to homeowners associations, from PNC Financial Services Group (PNC). In 2011, Union Bank acquired Klik Technologies, which offers remittance processing and transaction settlement services.
Union Bank, which is owned by Bank of Tokyo-Mitsubishi UFJ, has expressed a desire to expand nationally. In April, the bank announced plans to buy a portfolio of loans partly secured by commercial real estate in the northeastern U.S.
"This acquisition adds to our strengths in serving the unique needs of these specialized management companies," Masahi Oka, Union Bank's chief executive, said in a press release. "Like Klik and Smartstreet, this builds our momentum in an important market, provides immediate benefits to Union Bank and supports our long-term plans to provide customers with the best products and services possible."
Union Bank was advised by the law firm Bingham McCutchen. RBC Capital Markets and the law firm Bryan Cave advised First Banks.