ASB - Huntington National Bank to record $57M pretax gain from RPS sale
2023-04-11 09:53:16 ET
- The Huntington National Bank, the main banking subsidiary of Huntington Bancshares ( NASDAQ: HBAN ), said Tuesday that it will record a pretax gain of around $57M from the sale of its retirement planning service (RPS) to OneDigital Investment Advisors, according to an SEC filing.
- RPS covers some 1,200 plans and $5.6B in retirement plan assets under management.
- Huntington, which has been evaluating options since mid-2022 for RPS, will also receive reimbursement for client referrals after signing an on-going referral deal with OneDigital.
- At the start of 2023, Huntington announced its voluntary retirement program for eligible middle and senior level colleagues. Shortly thereafter, the company said it will realigns its four major business segments into two units.
- As a result of those activities, Huntington sees pretax charges of around $36M associated with the VRP and ~$6M of restructuring charges associated with the organizational realignment. The total is expected to be recognized in noninterest expense during Q1.
- The combined pretax impact from the gain on the RPS sale, VRP and realignment charges is ~$15M.
- in 2018, Associated Banc-Corp ( ASB ) acquired the Wisconsin branch banking operations of Huntington National Bank .
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Huntington National Bank to record $57M pretax gain from RPS sale