HealthEquity, Inc. announced the sale of a majority of The Bancorp’s Health Savings Account (HSA) portfolio to HealthEquity for $34.4 million.
The Bancorp is based near Wilmington.
The transaction, which includes approximately 170,000 accounts totaling more than $400 million in deposits, allows both companies to focus on growth within their respective areas of expertise and provide an optimal experience for account holders.
“As The Bancorp deploys its previously-announced strategic plan to exit from $900 million of certain deposit relationships, we are confident knowing that our HSA clients and customers will be entrusted to an outstanding organization and service team,” said Frank M. Mastrangelo, The Bancorp CEO.
HealthEquity is one of the nation’s leading HSA custodians, currently managing more than 1.5 million HSAs, with deposits over $2.6 billion.
“We aim to delight The Bancorp’s HSA account holders as they transition to HealthEquity membership,” stated HealthEquity’s and CEO, Jon Kessler. “Employers, health plans and other Bancorp HSA partners should also draw confidence from HealthEquity’s experience with transitions of this type.”
While exiting from the majority of its HSA portfolio, The Bancorp will continue its partnerships with non-bank financial service companies in the health care sector, including HealthEquity. The Bancorp intends to maintain and grow its card-issuing services for pre-tax benefit programs. Along with the above transaction, The Bancorp and HealthEquity announced an extension of their longstanding card issuance partnership through June 2019.
With operations in the US and Europe, The Bancorp serves non-bank financial service companies, ranging from entrepreneurial start-ups to those on the Fortune 500.
The Bancorp Bank is an issuer of prepaid cards and, a top merchant sponsorship Top Issuer of Prepaid Cards (US), a top merchant sponsor bank, and a top ACH originator. Specialized lending distinctions include National Preferred SBA Lender, a provider of securities-backed lines of credit, and one of the few bank-owned commercial leasing groups in the nation. Further information is available from thebancorp.com
