WILMINGTON, Del.–(BUSINESS WIRE)–The Bancorp, Inc. (NASDAQ: TBBK) announces that its wholly owned subsidiary, The Bancorp Bank, has entered into an agreement to transfer all of its rights and obligations as custodian and trustee of its Safe Harbor IRA account portfolio to Millennium Trust Company, a leading provider of retirement and custody services.
The transaction, which includes approximately 160,000 individual retirement accounts totaling more than $400 million in deposits with respect to which Millenium Trust will become the successor custodian, allows both companies to focus on growth within their respective areas of expertise. The transaction price is $65 million.
“We are pleased with this transaction which allows The Bancorp to focus on our core business growth and development,” said Damian Kozlowski, Chief Executive Officer of The Bancorp, Inc. and President of The Bancorp Bank, “and achieve our core capital targets well within the multi-year timeframe.”
Millennium Trust will assume The Bancorp Bank’s custodial and administrative duties under the automatic rollover program. Millennium Trust has provided solutions to accommodate distributions from ongoing, terminated or abandoned defined contribution plans since 2005. Its automatic rollover program is designed to comply with the Safe Harbor regulations promulgated by the Department of Labor pursuant to Section 657(c) of the Economic Growth and Tax Relief Reconciliation Act of 2001.
“As we continue to expand our retirement services business, we welcome the additional Safe Harbor IRA clients to our platform. Our focus remains on helping Americans save for retirement and providing access to investment tools they need to succeed,” said Gary Anetsberger, CEO of Millennium Trust.