Kansas City-based UMB Financial Corp. (Nasdaq: UMBF) says it has entered into a definitive agreement to acquire the health savings account business of Evansville-based Old National Bancorp (Nasdaq: ONB). The transaction under consideration includes the transfer of approximately $500 million in client assets of which approximately $400 million are held in deposit accounts.
The HSA business includes 157,000 accounts across more than 3,000 employer groups.
Old National Bancorp has offered direct-to-employer HSAs since 2004.
“We are thrilled to partner with an organization like UMB Healthcare Services that is strongly committed to investing in the HSA space and exceeding the expectations of clients,” said Old National President and Chief Operating Officer Mark Sander. “Anytime you can enter into an agreement with full confidence that clients and team members are going to benefit, you feel very good about making that decision.”
Pending regulatory approval, the banks say the acquisition is expected to close during the fourth quarter of 2022.
Upon closing, nine Old National employees will transition to UMB Healthcare Services.