The expansion into business banking services marks another major enhancement of the alliance announced in early 2020 between U.S. Bank and State Farm. It follows the acquisition and conversion of the deposit and credit card portfolios of State Farm’s former federal savings bank subsidiary by U.S. Bank. Now, U.S. Bank’s business banking digital capabilities bring the best of both human relationships and digital to State Farm customers.

The arrangement also marks the first time U.S. Bank will extend a holistic suite of products to small businesses across the country, with offerings historically limited to the bank’s 26-state retail footprint.

“U.S. Bank and State Farm share a commitment to putting our customers at the center of everything we do, and by bringing together our shared values, integrity and purpose to help them achieve their aspirations, along with the strength of our individual offerings, we see an incredible opportunity to empower small businesses of all shapes and sizes,” said Tim Welsh, vice chair, Consumer and Business Banking for U.S. Bank. “When we announced the strategic alliance, we were thrilled by the potential of coming together to better serve more individuals and businesses, and this is an exciting step in that direction.”

State Farm is the largest provider of auto and home insurance in the United States with nearly 19,000 agents serving approximately 84 million policies and accounts. The opportunity to offer U.S. Bank products and services to small business customers will be available to all State Farm agents.

“When we formed the alliance with U.S. Bank, it was about more than finding the right company to acquire the deposit and credit card accounts of State Farm’s former banking subsidiary. Collaborating with U.S. Bank to expand the portfolio of banking products offered to State Farm customers while delivering a best-in-class customer experience aligns perfectly with our mission to serve more people in more ways. And that is where we saw the real potential of our alliance with U.S. Bank,” said Mike Kish, Vice President of Corporate & Business Development at State Farm. “Serving more small business customers is a priority for both organizations and our agents’ ability to offer business banking products and services for the first time is an important next step for our relationship with U.S. Bank.”

State Farm, America’s largest property and casualty insurance provider, and U.S. Bank, the country’s fifth largest commercial bank, today announced a strategic alliance whereby U.S. Bank will assume State Farm Bank’s existing deposit and credit card accounts and State Farm agents will have the unique opportunity and tools to introduce U.S. Bank deposit products and co-branded credit cards to State Farm customers. This alliance will benefit State Farm customers, offering them new, easy ways to manage their banking needs.

The alliance is part of a broader strategy by State Farm to exit banking operations. In addition to assuming State Farm Bank’s existing deposit and credit card accounts, the two companies are exploring working together to provide State Farm customers with access to vehicle loans and business banking products.

“State Farm has been committed to helping people for nearly 98 years. U.S. Bank is an outstanding institution that shares our commitment to strong customer relationships,” said State Farm President and CEO Michael Tipsord. “When we combine State Farm’s deep customer relationships with the scale and capabilities of companies like U.S. Bank, we can help significantly more people.”

The transition of deposit and credit card accounts is scheduled to begin after closing, subject to regulatory approval, later this year and into 2021. Current State Farm Bank customers do not need to take any action.

“We are excited about this new alliance with State Farm because it will help us reach more customers in the moments that matter most,” said Andy Cecere, chairman, president and CEO of U.S. Bank. “It is a terrific opportunity to combine U.S. Bank products, services and digital capabilities with State Farm’s coast-to-coast network of agents. This relationship will provide State Farm customers with enhanced product options while expanding U.S. Bank’s reach into new and existing markets.”

State Farm and its affiliates are the largest providers of auto and home insurance in the United States with nearly 19,000 agents serving approximately 84 million policies and accounts.

Barclays Capital Inc. advised State Farm in connection with this transaction.