Old National Bank to sell its health savings account business
By Susan Orr
Indianapolis Business enterprise Journal
INDIANAPOLIS — Indiana-dependent Old Nationwide Financial institution plans to promote its wellness price savings account business enterprise to Kansas Metropolis, Missouri-based UMB Financial institution, the businesses declared late Monday.
The offer, predicted to shut in the fourth quarter, includes about $500 million in consumer belongings held in about 157,000 accounts connected with additional than 3,000 employer groups.
UMB declined to disclose economic conditions of the transaction. Both banks are publicly held firms, but as of Tuesday early morning neither UMB nor Outdated National had disclosed financial terms in any of their public filings. The deal is envisioned to close in the fourth quarter, pending regulatory approvals.
Aged National’s nine-individual HSA workforce will join UMB Health care Solutions after the transaction closes.
Aged Nationwide, which is headquartered in Evansville, acquired into the HSA enterprise in 2014 when it acquired Fort Wayne-based Tower Economic Corp.
In a community filing late Monday, Previous Nationwide mentioned the divestiture of its HSA enterprise “will allow it to emphasis on its main banking operations whilst guaranteeing that existing HSA consumers continue on to get excellent support by a nationally recognized HSA service provider.”
UMB, a industrial financial institution, services additional than 1.2 million HSAs totaling a lot more than $2.7 billion in belongings.
HSAs, which have been very first enabled by federal legislation in 2003, are price savings accounts that provide a tax-advantaged way for individuals to set aside dollars for foreseeable future health-related expenditures.
In accordance to a report issued in March by Minneapolis-centered agency Devenir, as of Dec. 31 buyers had a blended $98 billion in belongings held in 32.5 million HSA accounts. Devenir tasks people quantities will expand to $150 billion in assets in 38 million accounts by the end of 2024.