Webster will divest State Bank’s retail branches and related loans and deposits to National Exchange Bank and Trust and will retain the bank’s HSA operation and HSA deposits.
The completion of our acquisition of HSA Bank represents a major deposit-gathering opportunity, a key strategic objective. As the largest bank provider of health savings accounts in the country, HSA Bank has strong growth potential as employers increasingly turn to consumer-driven health plans to address the escalating problem of health care costs, said James Smith, chairman and CEO of Webster Financial Corporation.
Webster is pleased with the rapid growth of the health savings account market, said executive vice president for corporate development, Nathaniel Brinn. Account volume doubled in 2004, and in January 2005 alone, more than 16,000 new accounts were opened. Since the announcement of our acquisition in September, deposits have increased 64% to more than $155.4 million.
The purchase price is approximately $26 million in cash.
