Union Bank, after a 100-plus year history in Los Angeles with especially strong ties to the Japanese community, will operate under a new name by June since it has been acquired by the parent company of U.S. Bank.
The purchase of Union Bank, which was owned by Japan-based Mitsubishi UFJ Financial Group, was completed recently for approximately $8 billion. Mitsubishi UFJ Bank will hold a significant minority ownership in U.S. Bank and is not exiting the domestic market.
In its long-storied local and domestic history, Union Bank was a trailblazer for banking services that incorporated the customers and businesses that belonged to the Japanese community.
The bank’s history is closely linked with the Bank of Tokyo of California, which was founded in 1946 and established a branch in the Little Tokyo area of Los Angeles in 1952. The bank helped Japanese Americans reestablish their homes and businesses after they were released from World War II-era internment camps; many found their homes and businesses gone and had trouble getting loans otherwise.
Union Bank Executive Chairman Kaz Koshi told Little Tokyo-based newspaper The Rafu Shimpo that the bank was created after the signing of the San Francisco Peace Treaty.
The treaty re-established relations between Japan and the Allied Powers about six years after World War II ended.
“It couldn’t start banking without the support of Japanese-American community, individual small businesses that returned from internment,” Koshi told the newspaper in an interview. “So really there is a value having a bank that understands the Japanese-American community. That was critical. Bank of Tokyo California wouldn’t exist if that support didn’t come.”
The Bank of Tokyo of California would grow significantly years later. It secured a controlling stake in Southern California First National Bank by 1975, and in 1988 First National acquired Union Bancorp to create Union Bank.
Julius Robinson, head of Union Bank’s corporate social responsibility group for the Americas, said the company would not be where it is today without the Bank of Tokyo.
“Our Little Tokyo office has deep roots in the community, which has been maybe the second or third largest enclave of Japanese community in the country,” Robinson said.He added that Union Bank’s roots have permeated into its corporate structure and business components. The bank has a dedicated Japanese customer service unit, product offerings and bilingual services at local branches in such neighborhoods as Gardena, Torrance, Irvine and others. The bank’s website lists six Los Angeles County locations with Japanese-speaking bankers.
In addition, the bank has long been a supporter of the Japanese American National Museum in Little Tokyo and sponsored its 30th anniversary event last April.
Generational ties
Union Bank has garnered generations of customers.
David Honda, the owner of Northridge-based DS Honda Construction – and who was the general contractor for the Japanese-American museum – recalled that his parents banked at the Panorama City branch of Union Bank of California from the 1960s to 2000. Also relying on Union Bank were the San Fernando Valley Japanese Gardeners Federation and the San Fernando Valley Japanese Credit Union, according to Honda.
“Very unfortunately, the credit union closed its doors two months ago,” Honda said. “Fortunately, this institution was formed after the war to financially lend to all Japanese gardeners for lawnmowers, edgers, equipment, and trucks when no primary institution would help.”
Honda trusts U.S. Bancorp’s acquisition of Union Bank, adding that he believes the company is sensitive to cultural diversity because of the work of Darrell Brown, U.S. Bank’s former senior vice president for consumer banking.
With the acquisition completed, Union Bank clients and customers will have their accounts converted to U.S. Bank by June at the latest.
The process is one Union Bank is keeping close track of to ensure that their commitment to the Japanese community is not lessened or lost.
“Our front-line branch teams and our Japanese language call center will transition to U.S. Bank and continue serving this important community for many years to come,” Koshi said in a statement.
He added that “combining with U.S. Bank will further enhance the client experience for all clients, including Japanese Americans, as it strengthens the products, services and digital capabilities that will be available.”
Robinson echoed Koshi’s statement, noting that the acquisition serves as a boon for products and services that will be more agile in addressing the needs of the evolving Japanese community.
Same faces
For Union Bank customers with apprehension or assumptions that the acquisition will mark a negative change, Robinson said the fundamentals of Union Bank’s cultural sensitivity and services will live on.
“For the most part, when you walk into a branch, you’re going to see a lot of the same faces,” Robinson said. “We often think about banking in terms of technology, internet access and all those other things, but the bank is really the people that you meet in the branch every day.”
According to the data from the Federal Deposit Insurance Corporation, there were 4,178 commercial banks in the United States as of June last year, a 47% decrease from 2000.
Robinson sees the competition around digital banking and technology as one that increases the service value of physical branches.
“It’s really the opportunity to make that connection one on one,” he said. “When you walk into the bank and you see a familiar face, you see someone who understands you, looks like you and is prepared to address some of the needs that you might have on a much more sensitive level that sometimes can’t be done through AI or virtual services.”
Once customer conversion between Union Bank and U.S. Bank has been completed, implementation of U.S. Bank’s five-year, $100 billion community benefits plan will begin.
The plan seeks to aid people of color and increase access to homeownership, small-business capital, community development financing and philanthropic support.
