Webster Bank’s holding company Webster Financial has completed its previously announced acquisition of the health savings account (HSA) business of JPMorgan Chase Bank.
Announced on 23 September 2014, the transaction is said to solidify HSA Bank, a division of Webster Bank, as an administrator and depository of health savings accounts.
As part of the transaction, Webster acquired about 785,000 accounts, including approximately $1.3bn in deposits and $185m in other assets under administration.
In addition to $3.2bn in deposits, Webster’s HSA Bank division now has about 1.6 million accounts with over $4bn in assets under administration.
Following the acquisition and in alignment with its strategy, HSA Bank has added key partnerships with multiple employer HSA clients as well as two US health insurance providers.
Webster chairman and chief executive officer James Smith said: "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."