UMB Financial in Kansas City, Missouri, has agreed to buy a Midwest peer’s health savings account business that includes client assets of $500 million.
The $41 billion-asset UMB said in a press release after markets closed Monday that the seller is the $46 billion-asset Old National Bancorp in Evansville, Indiana.
The assets, which consist of 157,000 accounts across more than 3,000 employer groups, will significantly expand UMB’s direct-to-employer accounts. The bank is building up its connections with employers via HSAs and similar accounts.
“This acquisition provides significant business gain and a strong, experienced team that will complement our organic growth efforts,” UMB’s director of health care services, Phil Mason, said in the release.
The deal is expected to close in the fourth quarter. A sale price was not disclosed.
UMB’s health care services unit currently services more than 1.2 million HSAs with more than $2.7 billion of assets. It says it ranked as the No. 6 HSA provider in the U.S. last year.
Upon closing, the nine-person Old National team will transition to UMB.
“We are excited to welcome this team to UMB, as they will be an exceptional addition to our group and will help us further expand in this highly competitive space,” Mason said.
