WATERBURY, Conn., March 1, 2005 /PRNewswire-FirstCall via COMTEX/ -- Webster Financial
Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., announced
today the completion of its acquisition of Eastern Wisconsin Bancshares, Inc.,
the holding company of State Bank of Howards Grove, which operates under the
trade name HSA Bank. As previously announced, 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 C. Smith,
chairman and chief executive officer 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."
A survey conducted by Mercer Human Resource Consulting showed that 73% of
employers polled were likely to offer high-deductible health plans with HSAs
by 2006.
"The enrollment period for 2005 primarily included small employers. For
2006, we expect a significant increase in the number of mid and large
employers offering the HSA option," continued Brinn. "We have invested in
infrastructure, including a new call center, IT systems, electronic interfaces
and website improvements, to strengthen our ability to manage account
increases."
The purchase price is approximately $26 million in cash.
Webster Financial Corporation is the holding company for Webster Bank,
National Association and Webster Insurance. With $17.0 billion in assets,
Webster provides business and consumer banking, mortgage, insurance, financial
planning, trust and investment services through 152 banking offices, 289 ATMs,
telephone banking and the Internet. Webster Bank owns the asset-based lending
firm Webster Business Credit Corporation, the insurance premium finance
company Budget Installment Corp., and Center Capital Corporation, an equipment
finance company headquartered in Farmington, Connecticut. For more
information about Webster, including past press releases and the latest annual
report, visit the Webster website at http://www.websteronline.com.
Media Contact Investor Contact
Meghan Thompson 203-578-2287 Terry Mangan 203-578-2318
mthompson@websterbank.com tmangan@websterbank.com