Santander to Expand in US by Acquiring Connecticut-Based Webster Bank

Banco Santander plans to expand its presence in the United States by acquiring the holding company for Connecticut-headquartered Webster Bank for $12.2 billion.

The combined business created by the acquisition will be a top 10 retail and commercial bank in the U.S. by assets and a top five deposit franchise across key states in the Northeast, Santander said in a Tuesday (Feb. 3) press release.

In an earnings presentation released Tuesday, Santander said the combined business will have total assets of $327 billion, loans of $185 billion and deposits of $172 billion.

For customers, the combined business will offer access to a broader branch and service footprint, enhanced digital and mobile banking capabilities, expanded product offerings, and local relationship-based service backed by one of the world’s largest banking groups, according to the press release.

The transaction is expected to close in the second half, subject to customary closing conditions, per the release.

“This acquisition is a significant step forward in strengthening our commercial banking presence and filling in our retail branch footprint and scale, particularly in Connecticut, where we are committed to maintaining a broad branch presence,” Christiana Riley, CEO of Santander US, said in the release. “The acquisition meaningfully expands our commercial franchise, resulting in a more balanced business mix and positioning us for sustainable, long-term growth.”

John R. Ciulla, chairman and CEO of Webster Financial Corporation, the holding company of Webster Bank, said in a Tuesday press release that the transaction will create an even stronger partner for Webster Bank’s clients.

“As a larger organization, we will unlock greater scale, broader capabilities and new opportunities for growth — while remaining deeply focused on the people who define our success,” Ciulla said. “I look forward to joining the Santander team and enhancing our ability to support our clients.”

Santander Bank said in May that its digital banking platform, Openbank by Santander, gained more than 100,000 customers in the U.S. during its first six months of operations in the country. The bank said the growth rate exceeded its expectations.

Also in May, Santander announced that it sold a majority of its Polish business to Austrian bank Erste Group for $7.9 billion.