HSA Bank to acquire State Farm Bank’s health saving accounts

HSA Bank, a division of Webster Bank and Webster Financial, the holding company for Webster, has agreed to acquire the existing health savings accounts (HSAs) of State Farm Bank, a subsidiary of State Farm Mutual Automobile Insurance Company, a US property and casualty insurance provider.

Financial terms of the deal were not disclosed.

The acquisition is expected to help State Farm Bank’s HSA accountholders new and easy ways to handle their healthcare expenditure and saving through an HSA provider with more than 20 years of experience.

Joe Monk – President and CEO of State Farm Bank said: “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.”

HSA Bank to acquire State Farm Bank’s health saving accounts. Image courtesy of State Farm Bank.

As per the agreement, around 24,000 accounts with an estimated $140 million in deposits will transition from State Farm Bank to HSA Bank, which is a US-based bank administrator and depository of HSAs.

Chad Wilkins – President of HSA Bank said: “We look forward to welcoming State Farm Bank HSA accountholders to 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.”

Barclays Capital advised State Farm in connection with the deal.

Closing of the deal is subject to regulatory approval and customary closing conditions, and is likely to occur in the second or third quarter of 2020.