Webster Financial Corp., parent company of Webster Bank N.A., has announced a deal to acquire the health savings account business from JPMorgan Chase Bank N.A.
As a result, Sheboygan-based HSA Bank, a division of Webster Bank, will take on the HSA accounts associated with the transaction. There are about 700,000 accounts with about $1.3 billion in deposits and $175 million in investments.
HSA Bank is one of the most experienced health savings account administrators in the country.
“This acquisition will solidify HSA Bank’s position as a leading provider of health savings accounts with nearly $4 billion in assets under administration in more than 1.4 million accounts and will accelerate HSA Bank’s strategy to increase penetration of the carrier and large employer markets,” said James Smith, chairman and chief executive officer of Webster. “HSAs are growing rapidly and transforming the way consumers use and pay for health care. HSAs attract long-duration transaction deposits which provide a stable source of funding for Webster’s loan growth.”
The purchase price was not disclosed. Webster plans to use about 60 percent of the deposits to pay down short-term borrowings, and invest the rest of the money in securities.
“As one of the pioneers in health savings accounts, HSA Bank has earned a reputation as an expert in the consumer directed health plan space and for the highest quality customer service,” said Chad Wilkins, president of HSA Bank. “We look forward to a seamless transition of deposits to HSA Bank. We are confident that our new account holders, employers, and carriers will be delighted with the HSA Bank experience.”
HSA Bank had $2.4 billion in assets under administration as of June 30.
