UMB buys unit of health savings account from Old National

UMB Financial in Kansas City, Missouri, has agreed to buy a health savings account business from a Midwestern peer that includes $500 million in client assets.

UMB, with assets of $41 billion, said in a news release after markets closed on Monday that the seller was the Old National Bancorp, with assets of $46 billion, in Evansville, in Indiana.

The assets, which consist of 157,000 accounts across more than 3,000 employer groups, will significantly expand UMB’s direct employer accounts. The bank is strengthening its ties with employers through HSAs and similar accounts.

“This acquisition provides significant business gain and a strong, experienced team that will complement our organic growth efforts,” UMB Director of Health Services Phil Mason said in the statement.

The transaction is expected to close in the fourth quarter. A sale price has not been disclosed.

UMB’s Healthcare Services unit currently serves more than 1.2 million HSAs with over $2.7 billion in assets. He says he ranked 6th among HSA providers in the United States last year.

At the close, the former nine-person national team will move to UMB.

“We are thrilled to welcome this team to UMB as they will be an exceptional addition to our group and help us grow further in this highly competitive space,” said Mason.