Key Takeaways:
Santander's $12.3 billion purchase of Webster closes, creating a US retail and commercial bank with about $327 billion in assets and nearly eight million customers.
Banco Santander completed its $12.3 billion acquisition of Webster Financial on Thursday, creating a US retail and commercial bank with about $327 billion in assets and nearly eight million customers. The deal, first announced in February, closed after receiving shareholder and regulatory approvals.
"Today marks the beginning of an exciting next chapter for our customers and communities," said John Ciulla, former CEO of Webster Bank and now CEO of Santander Bank. "This combination allows us to further deepen our local relationships with the support of Santander's global scale, financial strength, and investment capabilities."
The combined balance sheet holds $185 billion in loans and $172 billion in deposits, based on year-end 2025 figures. Webster brings 195 branches, including 95 in Connecticut, filling a gap in Santander's US network that runs from Philadelphia through New York and from Rhode Island into Boston. Santander had struggled to break into Connecticut, which Riley called "a very attractive white space."
The transaction is central to Santander's push to reach about 18 percent return on tangible equity in the United States by 2028, with $800 million in planned cost savings. Webster contributes a relationship-driven deposit base, deeper commercial banking capabilities, and a Healthcare Financial Services platform that improves Santander US's funding profile and business mix.
Santander and Webster plan to keep the Webster brand and technology running for at least another year, with executives saying they expect to combine the banks onto a single platform and brand by the end of 2027. The deliberate pace is meant to avoid the customer disruption that followed M&T Bank's acquisition of Bridgeport-based People's United Bank, which drew complaints after its technology conversion.
"We look forward to disappointing all of them," Santander US President and CEO Christiana Riley said of Connecticut competitors that have been courting Webster customers since the deal was announced. Smaller banks across the state see an opening in the disruption that often follows major mergers.
For now, most everyday banking experiences remain unchanged. Customers of both banks can use Santander and Webster ATMs across the United States without fees, and no account action is required. An FAQ is available on SantanderBank.com.
The $800 million in savings will come partly from moving onto a single technology platform and eliminating duplicate back-office roles. Riley declined to estimate how many of Webster's roughly 4,500 full-time employees could be affected, saying "it would be disingenuous to tell you that de-duplication won't be without some job losses." The savings are not tied to branch closures or cuts to customer-facing operations, she said.
Ciulla said the reductions are not meant to fall disproportionately on Webster or Connecticut, noting that a "significant majority" of Webster's senior leadership will remain. "This isn't a sort of slash and burn of Webster," he said. "It is a thoughtful and deliberate look at where we can best operate the company and best serve our clients."
Webster's former headquarters in Stamford, Connecticut, becomes a corporate hub for Santander in the United States, alongside Boston, New York, Miami and Dallas. Ciulla said he has assured Waterbury leaders the bank will keep a presence in the city, Webster's birthplace, though a review of properties is not complete.
The deal deepens Santander's US footprint across auto lending, retail and digital banking, commercial banking, corporate and investment banking, and wealth management. The Madrid-based parent, which counts more than 182 million customers across the United States, Europe and Latin America, is a top-10 US auto lender and top-10 multifamily bank lender, and operates the digital bank Openbank as a division of Santander Bank.
This article is for informational purposes only and does not constitute investment advice.
