U.S. Bancorp Acquires $700 Million Credit Card Portfolio from B of A Unit

Elan Financial Services, a unit of U.S. Bancorp (NYSE: USB), has completed the acquisition of the credit card assets of 28 financial institutions, in a portfolio comprising approximately $700 million of outstanding balances. The portfolio, which includes small business and consumer cards, was acquired from FIA Card Services, N.A., the credit card unit of Bank of America. The terms of the agreement and purchase price were not disclosed.

Among the 28 financial institutions, the portfolio includes cards offered by financial services firm Edward Jones to its clients through its network of more than 11,000 U.S. financial advisors.

By purchasing this portfolio of credit card assets, Elan will own the assets but will continue to brand and to market the credit cards under the respective financial institution names. Current clients may continue to use their existing cards until Elan issues new cards in mid-2012.

“This portfolio of financial institutions represents a significant opportunity for Elan,” said Pamela Joseph, vice chairman and head of U.S. Bancorp Payment Services. “They are highly regarded financial service partners to millions of Americans and we share their commitment to adding high quality financial services for their clients that can help them achieve their goals.”