The Bancorp in Wilmington, Del., has sold a portfolio of retirement accounts to Millennium Trust.
The Bancorp, which has $4.4 billion in assets, said in a press release Tuesday that Millennium Trust paid $65 million for the portfolio, which has 160,000 accounts and more than $400 million in deposits. Millenium Trust will become the successor custodian for the accounts.
The Bancorp said about $5 million of the consideration will be held in escrow until Oct. 10, 2019.
“We are pleased with this transaction which allows The Bancorp to focus on our core business growth and development and achieve our core capital targets well within the multi-year timeframe,” Damian Kozlowski, the company’s CEO, said in the release.
The Bancorp said the sale will increase its interest expense and lower its interest income on federal funds. The company said it earned $5.9 million in service fees last year from the accounts.
“As we continue to expand our retirement services business, we welcome the additional … clients to our platform,” Gary Anetsberger, Millennium Trust’s CEO, said in the release. “Our focus remains on helping Americans save for retirement and providing access to investment tools they need to succeed."