Press Release: HSA Bank to Acquire Health Savings Accounts from State Farm Bank
Milwaukee, April 20, 2020 — HSA Bank, a division of Webster Bank, N.A., and Webster Financial Corporation (NYSE: WBS), the holding company for Webster, announced today that it had signed a definitive agreement to acquire the existing health savings accounts (HSA) of State Farm Bank, F.S.B., a subsidiary of State Farm Mutual Automobile Insurance Company, America’s largest property and casualty insurance provider. This acquisition offers State Farm Bank’s HSA accountholders new and easy ways to manage their healthcare spending and saving through an industry-leading HSA provider with more than two decades of experience.
Under the agreement, approximately 24,000 accounts, including an estimated $140 million in deposits, will transition from State Farm Bank to HSA Bank, the nation’s leading bank administrator and depository of HSAs. Expected closing is in the second or third quarter of 2020. No other terms of the transaction are being disclosed. The transaction is subject to regulatory approval and customary closing conditions.
"We look forward to welcoming State Farm Bank HSA accountholders to HSA Bank," said Chad Wilkins, President of HSA Bank. "We are excited that State Farm selected HSA Bank as the HSA custodian of choice, and are well-equipped to help accountholders make healthcare financial decisions that are best for them in every stage of life."
Joe Monk, President and CEO of State Farm Bank added, "State Farm and HSA Bank share a common goal to help people live confidently. HSA Bank is well positioned to help accountholders save and plan for healthcare expenses today and in retirement, and we believe it is a positive move for customers."
Current State Farm Bank HSA accountholders do not need to take any action. Accountholders will receive communications in advance of the transition.
Barclays Capital Inc. advised State Farm in connection with this transaction.
About HSA Bank
HSA Bank is a trusted leader in consumer-directed healthcare (CDH), focusing on Health Savings Accounts (HSAs) for over two decades and serving as both the bank and administrator. Discover how we can support your benefits strategy with our comprehensive account-based health benefit solutions that include HSAs, Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs), Commuter Benefits, COBRA Administration, and HSA investment solutions such as HSAdvisor+. With a reputation for outstanding service and thought leadership in the CDH space, we offer one platform and one portal for all of our members. HSA Bank inspires 3 million members and more than 35,000 employer groups to "own your health" by making it easy to access, understand, and afford healthcare. As of December 31, 2019, HSA Bank has $8.5 billion in total footings (assets) comprising $6.4 billion in deposit balances and $2.1 billion in assets under administration through linked investment accounts, and is a division of Webster Bank, N.A., Member FDIC.
About State Farm®
The mission of State Farm is to help people manage the risks of everyday life, recover from the unexpected, and realize their dreams. State Farm and its affiliates are the largest providers of auto and home insurance in the United States. Its nearly 19,000 agents and approximately 58,000 employees serve approximately 84 million policies and accounts – over 81 million auto, fire, life, health and commercial policies and over 2 million bank and investment planning services accounts. Commercial auto insurance, along with coverage for renters, business owners, boats and motorcycles, is available. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 36 on the 2019 Fortune 500 list of largest companies. For more information, please visit http://www.statefarm.com.