PDNB's network merchant processing, prepaid stored value cards and ACH services are not part of this transaction and will remain with PDNB. Financial terms of the agreement were not disclosed.

The new business will become part of Elan Financial Services, a business of U.S. Bank that provides electronic funds transfer (EFT) and payments services to banks, credit unions and independent sales organizations nationwide. As a result of the transaction, Elan will become the nation's leader in providing ATM and kiosk vault cash, ATM operational support, and other related services, which Elan has provided since 1997 and PDNB EBS has provided since 1994. EBS manages nearly $1 billion in vault cash in more than 22,000 ATMs and advanced function kiosks nationwide. Approximately 60 PDNB employees will become employees of U.S. Bank as part of the acquisition.

"This acquisition brings together two premier and respected ATM industry leaders who fully complement each other and will enable U.S. Bank to provide an extensive array of ATM solutions to an even broader cross-section of clients," said Rick Hartnack, vice chairman of consumer banking at U.S. Bancorp. "We're proud of our leadership position in this evolving industry and look forward to realizing the success that will result from the union of these two powerful and growing businesses."

"Elan is a leader in the industry and shares our strategy of providing quality products and top rate customer service. We are proud that they recognize what PDNB EBS has done in building this business by focusing on customers and we know that same philosophy will be maintained," said Kevin McGuire, chief executive officer and chairman of Palm Desert National Bank.

PDNB EBS has operations centers in Palm Desert, Calif. and Lafayette, La., where its sophisticated automation and infrastructure allows it to offer complete terminal management and vault cash solutions to clients of any size. PDNB EBS also developed the propriety TRAKKERSM software program, which automates all back room management functions from cash forecasting and ordering to reconciliation and settlement, and can be customized for specific ATM and kiosk client needs.

"Elan Financial Services has a strong history of innovation and growth in the EFT and ATM solutions business, and this transaction only creates greater opportunity for future growth," said Jeannie Fichtel, senior vice president and head of 24-hour banking at U.S. Bank. "We welcome PDNB EBS' expertise and leadership position as a vault cash and ATM terminal management provider, and ensure that we will continue to exceed the demands of existing and future clients for responsive service, stable yet inventive products and scalable technology. Additionally, current PDNB EBS clients will now have access to a comprehensive array of payments and EFT services offered through Elan."