Citi Global Healthcare Conference. December 6, 2018

Transcription

1 Citi Global Healthcare Conference December 6, 2018

2 Chad Wilkins President

3 Creating Value Together PROFILE PROFILE Assets Loans Deposits Market Cap $27.3 billion $18.3 billion $22.0 billion $5.5 billion AUA Deposits Accounts $7.2 billion $5.6 billion 2.7 million NYSE WBS Businesses 35,000 + Strong, growing, high performing regional bank The leading bank administrator of health savings accounts Full realization of HSA deposit economics as an end-to-end single solution provider Profile data as of September 30, 2018; market cap data as of December 3, HSA Bank. HSA Bank is a Division of Webster Bank, N.A., Member FDIC. 3

4 HSA Bank Our Motivation VISION We inspire every individual to own your health by making it easy to access, understand, and afford healthcare MISSION We empower individuals and their families to make the most of every healthcare dollar 2018 HSA Bank. HSA Bank is a Division of Webster Bank, N.A., Member FDIC. 4

5 A Comprehensive Set of Financial Health Solutions 2018 HSA Bank. HSA Bank is a Division of Webster Bank, N.A., Member FDIC. 5

6 Key Product Differentiators Enrollment flexibility maximizing account penetration Advanced rules-based messaging optimizing HSA contributions The most ways to contribute and pay, even before money is deposited Mobile technology driving engagement Strategic partnerships driving savings and Net Promoter Score 24/7 phone support + online chat Broad selection of investment offerings and channel partnerships Reporting designed for program optimization 2018 HSA Bank. HSA Bank is a Division of Webster Bank, N.A., Member FDIC. 6

7 Thought Leadership White Papers Webinars Speaking Sessions Reports >> hsabank.com/thoughtleadership 2018 HSA Bank. HSA Bank is a Division of Webster Bank, N.A., Member FDIC. 7

8 Market Potential for HSA Accounts & Balances 2.7M HSAs HSA Bank $7.0 billion AUA 23M HSAs Current market $51 billion AUA 29M HSAs Market forecast 2020 YE $75 billion AUA Additional potential for growth 155 million privately insured Americans 43 million Medicare participants 69 million Medicaid/CHIP participants Sources: Devenir 2018 Midyear Report; Kaiser Family Foundation, HSA Bank June 30, 2018 data HSA Bank. HSA Bank is a Division of Webster Bank, N.A., Member FDIC. 8

9 HSA Bank Aggressively Growing $10,000.0 $9,000.0 CAGR 32% $7,199 $8,000.0 $6,307 $1,599 $7,000.0 $6,000.0 $5,000.0 $4,000.0 $3,000.0 $2,000.0 $1,000.0 $0.0 ($ in millions) $210 $287 $404 $531 $668 $843 $1,169 $1,027 $571 $378 $1,533 $1,270 $746 $1,825 $692 $4,363 $3,802 $878 $5,039 $1,268 $5, December 31 Sept. 30 $1,648 $2,104 $2,571 $4,494 $5,241 Investments Deposits 2018 HSA Bank. HSA Bank is a Division of Webster Bank, N.A., Member FDIC. 9

10 Growth Opportunities: HSAB Channel Trends Brokers/Agents/ Consultants Health Plans Technology & Ancillary Retirement (Primarily DC focused) Direct to Employer Increasing production Large consultant engagement National Plans Regional Plans New Partners Aggregators Exchanges Advisors/RIAs Record Keepers/ Custodians Broker Dealers Key focus on Large Employers Technology Providers 2018 HSA Bank. HSA Bank is a Division of Webster Bank, N.A., Member FDIC. 10

11 Long Term Value of Account Growth Composition of Accounts Percentage of Accounts 73% 22% 5% Source: HSA Bank Average Balance data at September 30, Spender defined as HSA account with less than $2,000. Saver defined as HSA account with greater than $2,000. Investor defined as anyone with an open investment account HSA Bank. HSA Bank is a Division of Webster Bank, N.A., Member FDIC. 11

12 HSA Bank s Spread Advantage 2.82 % Credit Curve Rate RATE DURATION HSA BANK DEPOSIT COST (3Q18) 2.62 % 0.20 % SPREAD Funding value measured by the alternative cost of FHLB borrowings of the same duration Duration estimated as a function of the (1) average life of a deposit, (2) price sensitivity or beta by pricing tier, (3) core/non-core balances and 2018 HSA Bank. HSA Bank is a Division of Webster Bank, N.A., Member FDIC. 12 (4) origination date of the account.

13 HSA Bank Aggressively Growing Pre-Tax Net Revenue ($ millions) 3-year CAGR +38% $67.4 $26.5 PTNR $40.9 $182.1 $68.9 PTNR $113.1 $ mos. 18 vs. 9 mos % $50.5 PTNR $84.2 $172.6 $79.1 PTNR $ mos. '17 9 mos. '18 Operating Revenue Operating Expense 2018 HSA Bank. HSA Bank is a Division of Webster Bank, N.A., Member FDIC. 13

14 Bi-Directional Value of Webster & HSA Bank Long duration, low-cost, stable funding source Fast-growing fee income business Growth of HSA balances requires minimal incremental capital Full realization of deposit economics Safety and soundness of Webster a key selling point in HSA market End-to-end single provider solution 2018 HSA Bank. HSA Bank is a Division of Webster Bank, N.A., Member FDIC. 14

15 Forward Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of Forward-looking statements can be identified by words such as believes, anticipates, expects, intends, targeted, continue, remain, will, should, may, plans, estimates, and similar references to future periods; however, such words are not the exclusive means of identifying such statements. Examples of forwardlooking statements include, but are not limited to: (i) projections of revenues, expenses, income or loss, earnings or loss per share, and other financial items;(ii) statements of plans, objectives, and expectations of Webster or its management or Board of Directors; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Forward-looking statements are based on Webster s current expectations and assumptions regarding its business, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Webster s actual results may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. For more information about factors that could cause actual results to differ from those discussed in the forward-looking statements please refer to the Risk Factors and Management s Discussion and Analysis of Financial Condition and Results of Operations sections of the Company s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Any forward-looking statement made by the Company in this presentation speaks only as of the date on which it is made. Factors or events that could cause the Company sactualresultstodiffermayemergefromtimetotime,andit isnot possibleforthecompanytopredictallof them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as may be required by law. Non-GAAP Financial Measures This presentation contains both financial measures based on accounting principles generally accepted in the United States ( GAAP ) and non-gaap based financial measures, which are used where management believes them to be helpful in understanding the Company s results of operations or financial position. Reconciliations of these non-gaap financial measures, to the most comparable GAAP measures are included in the Company s earnings release available in the Investor Relations portion of the Company s website at These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-gaap performance measures that may be presented by other companies. For additional information see reconciliation to GAAP financial measures presented in the Company s Press Release.