Santander’s Acquisition of Webster Bank Could Be a Sign of What is to Come

Banco Santander announced this week that it has entered into an agreement with Connecticut-based Webster Financial Corporation, the holding company for Webster Bank.

Webster Bank is a diversified U.S. retail and commercial bank that will expand Santander’s scale, deposit base, and capabilities in the United States.

The acquisition will reportedly cost Santander about 4% of its assets and seeks to position the business as a top ten retail and commercial bank in the United States by assets and an even more dominant presence in the Northeast.

Webster Bank is extremely profitable, and this could be a sign of what is to come when it comes to global banks looking for a strong presence in the United States. Reuters priced the deal at $12.2 billion.

Combined, Santander and Webster would hold roughly $42.3 billion in Connecticut deposits, according to the Hartford Courant, surpassing Bank of America in total in-state deposits.

Santander already has a strong presence in Boston, New York, and New Jersey, but this will strengthen its impact in the Northeast and turn it into a top-five financial institution in the region.