WATERBURY, Conn., Jan. 13, 2015 /PRNewswire/ -- Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., today completed its acquisition of the health savings account (HSA) business of JPMorgan Chase Bank, N.A., a subsidiary of JPMorgan Chase & Co. (NYSE: JPM). The transaction, announced on September 23, 2014, solidifies HSA Bank, a division of Webster Bank, as a leading administrator and depository of health savings accounts. Based in Sheboygan, Wis., HSA Bank is one of the oldest, most experienced HSA providers in the nation.
Webster acquired approximately 785,000 accounts, including approximately $1.3 billion in deposits and $185 million in other assets under administration. Webster's HSA Bank division now has approximately 1.6 million accounts with over $4 billion in assets under administration, including $3.2 billion in deposits. As a result of this acquisition and in alignment with its strategy, HSA Bank has added key partnerships with multiple large employer HSA clients as well as two of the five largest health insurance providers in the U.S.
"HSA Bank has been a fast-growing source of deposits for Webster with a 10-year compound growth rate of nearly 30 percent," said James C. Smith, chairman and chief executive officer of Webster. "The acquisition significantly augments a source of stable, low cost, long duration deposits to fund ongoing loan growth. HSA Bank employs industry-leading technology that enables consumers to 'own your health' and provides consumers, employers and insurance carriers an experienced, reliable partner to assist them in managing health care costs."
Chad Wilkins, president of HSA Bank, said, "We welcome our new accountholders, employers and carriers to HSA Bank. Since pioneering health savings accounts in 2004, HSA Bank has earned a reputation as a leader in consumer-directed health care by setting a high standard for customer service and providing customers with a robust online presence and a broad range of savings and investment options."
About HSAs – First marketed in 2004, HSAs increasingly are finding favor among employers and consumers. As of June 30, 2014, there were 11.8 million HSAs holding assets totaling more than $22.8 billion, increases of 29 percent and 26 percent, respectively, from a year earlier, according to Devenir, an investment advisor and consultant. HSAs provide a tax-advantaged way for consumers to pay and save for current and future medical expenses. Besides being pre-tax, contributions to an HSA are fully portable and can remain in the account and grow until withdrawn. Eligibility to participate in an HSA is not subject to an income ceiling. Annual contributions in 2015 are limited to $3,350 for an individual and $6,650 for a family. Withdrawals to pay for qualified medical expenses are not taxable as income, and HSAs do not require accountholders to take minimum annual distributions upon reaching age 70 nor are they subject to ordinary income taxes upon death.
Webster Financial Corporation is the holding company for Webster Bank. With $22 billion in assets, Webster provides business and consumer banking, mortgages, private banking, trust and investment services through 164 banking offices; 314 ATMs; telephone banking; mobile banking; and the Internet. Webster Bank owns the asset based lending firm Webster Business Credit Corporation; the equipment finance firm Webster Capital Finance Corporation; and provides health savings account trustee and administrative services through HSA Bank, a division of Webster Bank headquartered in Wisconsin. Member FDIC and equal housing lender. For more information about Webster, including past press releases and the latest annual report, visit the Webster website at www.websterbank.com or follow us on LinkedIn http://linkedin.com/company/webster-bank and Twitter https://twitter.com/WebsterBank. For more information on HSA Bank, visit www.hsabank.com.
SOURCE Webster Financial Corporation