The sale also includes $5.3bn in local deposits and $1.1bn in locally originated loans for a deposit premium of approximately $315m, or 6% of deposits.
Bruce Van Saun, RBSCFG Chairman and Chief Executive Officer, said the sale will allow RBS Citizens Financial Group to focus on primary Citizens Bank and Charter One markets where the group has stronger market positions and better long term growth prospects.
“We have a number of business growth initiatives and enhancements to the customer experience that position us well for the future. We feel that U.S. Bank is a good buyer of our Chicago region branch-based business, and we will work hard to ensure a smooth transition for our customers and colleagues who will be going to U.S. Bank,” he said.
All employees in the Chicago-area business units being sold will be offered comparable jobs and transfers to U.S. Bank.
Citizens will maintain a presence in Chicago through local mortgage lending, student lending, car finance and commercial banking including asset-based lending, asset finance, equipment leasing, commercial real estate, treasury solutions, capital markets, sponsor and franchise finance
The sale, for which BofA Merrill acted as financial adviser to RBS Citizens Financial Group, is subject to regulatory approval and is expected to close in mid-2014.
RBS Citizens Financial Group is a $120bn commercial bank holding company which owns 1,400 branches employing 18,000 staff through its subsidiaries, RBS Citizens, N.A., and Citizens Bank of Pennsylvania.