Business
UMB Healthcare Services Announces Agreement to Acquire HSA Business from Old National Bank
Transaction adds key talent, significantly increases direct-to-employer business KANSAS CITY, Mo.--(BUSINESS WIRE)-- UMB Bank, n.a., a subsidiary of UMB
About this update from Old National Bancorp
[{"type":"text","content":"\nTransaction adds key talent, significantly increases direct-to-employer business\n\n KANSAS CITY, Mo.--(BUSINESS WIRE)--\nUMB Bank, n.a., a subsidiary of UMB Financial Corporation (Nasdaq: UMBF), is pleased to announce the execution of a definitive agreement to acquire the health savings account (HSA) business of Old National Bank, a wholly owned subsidiary of Old National Bancorp (Nasdaq: ONB).The transaction contemplates the transfer of approximately $500 million in client assets of which approximately $400 million are held in deposit accounts (based on numbers as of March 31, 2022). The assets, which are comprised of approximately 157,000 accounts across more than 3,000 employer groups, will significantly expand UMB’s direct-to-employer accounts.\n\n“Our strategic focus continues to be on growth in the direct-to-employer space,” UMB Director of Healthcare Services Phil Mason said. “This acquisition provides significant business gain and a strong, experienced team that will complement our organic growth efforts.”\n\nOld National Bancorp, one of the largest bank holding companies headquartered in the Midwest, has offered direct-to-employer HSAs since 2004.\n\n“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 COO 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.”\n\nUMB Healthcare Services provides solutions for 4.9 million healthcare spending account cards, and services more than 1.2 million HSAs, totaling more than $2.7 billion in HSA assets and deposits as of March 31, 2022. At year-end 2021, UMB Healthcare Services ranked as the No. 6 HSA provider in the U.S. based on number of accounts, according to Devenir.\n\n“While we have been in the HSA space since the beginning, we’ve been extremely intentional in continuing to grow and evolve our business model and services based on customer needs, industry adjustments, and an ever-changing healthcare landscape,” Mason continued.\n\nThis news follows UMB Healthcare Services’ recent announcement regarding its new suite of tax-advantaged benefit accounts that now also includes flexible spending accounts ...