UMB Bank (UMBF) to Acquire Subset of The Bancorp's (TBBK) Remaining HSAs
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The Bancorp, Inc. (Nasdaq: TBBK) and UMB Bank, n.a. (Nasdaq: UMBF) announced that they have entered into an agreement for UMB to acquire a subset of The Bancorp’s remaining health savings accounts (HSAs). The portfolio includes approximately 40,000 accounts with $76 million in deposits and investment assets. The transaction is pending regulatory approval and is a continuation of The Bancorp’s exit from the HSA business, which began in 2015.
“This transaction is yet another important step toward The Bancorp focusing its businesses and increasing the efficiency of its financial service infrastructure,” said Damian Kozlowski, President and CEO of The Bancorp. “This sale will allow us to continue to streamline our operations and reduce the associated costs and resources supporting a non-core franchise.”
“This transaction represents our ongoing commitment to our HSA business by taking advantage of opportunities that allow us to scale and grow our business as the industry consolidates,” said Begonya Klumb, CEO of UMB Healthcare Services, a division of UMB Bank n.a. “We are focused on providing a seamless transition to The Bancorp account holders with our user-friendly technology and personalized customer service. Ultimately, we believe this acquisition will be beneficial for both account holders and business partners.”
The Bancorp will continue its partnerships with non-bank financial service companies in the healthcare sector, including maintaining and growing its card-issuing services for pre-tax benefit programs.
UMB Healthcare Services is one of the top HSA custodians in the nation with 826,000 HSAs and $1.6 billion in HSA deposits and investment assets. According to the 2016 Devenir Midyear HSA Market Statistics & Trends report, UMB holds 5 percent market share and ranks sixth in the industry by number of HSAs and seventh by HSA deposits and investment assets.
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