Webster Financial in Waterbury, Conn., has received regulatory approval to acquire the health savings account business of JPMorgan Chase.
The transaction includes approximately $1.3 billion in deposits and $175 million of investments. The purchase price for the all-cash deal, which is expected to close in the first quarter, was not disclosed.
The $21.8 billion-asset Webster is planning to use approximately 60% of the deposits to "pay down short-term borrowings" and will invest the remaining funds in securities, the company said in September when the deal was initially signed.
The new accounts would be administered by HSA Bank, a subsidiary of Webster that currently manages $2.4 billion in assets for approximately 700,000 health care accounts. HSA Bank is based in Sheboygan, Wis.