Banco Santander completes $12.2 billion acquisition of Webster Financial

Banco Santander has finalized its acquisition of Webster Financial in a deal valued at approximately $12.2 billion. The transaction received final approval from the U.S. Federal Reserve on August 5, following prior authorization from the Office of the Comptroller of the Currency (OCC).

The acquisition marks a strategic shift for Santander in the United States, moving away from a heavy reliance on consumer finance and investment banking toward traditional commercial banking. By integrating Webster Financial, a regional entity with strong roots in Connecticut, Santander gains access to a significant deposit base. Projections indicate the combined U.S. operations will hold approximately $327 billion in assets, $185 billion in loans, and $172 billion in deposits.

This influx of deposits is expected to lower Santander’s funding costs by improving its loan-to-deposit ratio. The move positions the bank among the ten largest providers for private and corporate customers in the U.S. and establishes it as one of the top five deposit holders in several Northeastern states.