The Bank of New York Acquires Municipal Bond Administration Business from Hibernia National Bank

Strategic Insights -

The Bank of New York has signed a definitive agreement to purchase the Municipal Bond Administration business of Hibernia National Bank, a subsidiary of Hibernia National Corporation. This acquisition adds approximately 350 municipal bond trustee and agency relationships to The Bank of New York's corporate trust business, representing over $2.7 billion principal amount in outstanding securities. The transaction is expected to be completed during the second quarter of this year and will contribute to the company's earnings immediately. This marks the sixth corporate trust acquisition by The Bank of New York in the past 14 months, expanding its corporate trust business to over 23,000 trust and agency appointments and more than $300 billion in outstanding securities.

Key Takeaways:

  • The Bank of New York has acquired the Municipal Bond Administration business of Hibernia National Bank, adding 350 municipal bond trustee and agency relationships.
  • The acquired portfolio represents over $2.7 billion principal amount in outstanding securities.
  • The transaction is expected to be completed during the second quarter of this year and will contribute to the company's earnings immediately.
  • This is The Bank of New York's sixth corporate trust acquisition in the past 14 months.
  • The acquisition strengthens The Bank of New York's corporate trust business, which now includes over 23,000 trust and agency appointments and more than $300 billion in outstanding securities.
  • The Bank of New York will provide relationship management support to the former Hibernia clients from its Southeast regional processing center in Jacksonville, Florida.
  • The company's goal is to provide new clients with a unique combination of high-quality processing services and highly responsive, localized relationship management services.

Statistics:

  • 350 municipal bond trustee and agency relationships acquired by The Bank of New York
  • $2.7 billion principal amount in outstanding securities represented by the acquired portfolio
  • 6 corporate trust acquisitions by The Bank of New York in the past 14 months
  • 23,000 trust and agency appointments in The Bank of New York's corporate trust business
  • $300 billion in outstanding securities held by The Bank of New York in its corporate trust business

Sources:

  • PRNewswire, The Bank of New York Announces Acquisition of Municipal Bond Administration Business from Hibernia National Bank (March 7, 1995)
  • Bank of New York Company, Inc. (NYSE: BK)