Santander to Acquire Webster Bank for $12.2 Billion

Acquisition will create a stronger, more competitive bank for customers in the U.S. Northeast

Published on Feb. 5, 2026

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Banco Santander, S.A. announced it has entered an agreement to acquire Webster Financial Corporation, the holding company for Webster Bank, N.A., a diversified U.S. retail and commercial bank headquartered in Stamford, Connecticut. The $12.2 billion transaction will significantly expand Santander's scale, deposit base, and capabilities in the U.S., while enhancing the products, technology, and services available to both banks' customers.

Why it matters

This acquisition is a strategic move for Santander to strengthen its U.S. franchise, positioning the combined business as a top-ten retail and commercial bank in the U.S. by assets and a top-five deposit franchise across key states in the Northeast. The deal is expected to improve Santander U.S.'s business profile, funding structure, and profitability, putting it on track to deliver around 18% return on tangible equity by 2028.

The details

The transaction will create a more balanced business profile by combining Santander U.S.'s strength in consumer finance and Webster's strength in commercial banking. It is also expected to deliver significant cost synergies of approximately $800 million, equivalent to around 19% of the combined cost base. As a result, Santander U.S. expects its efficiency ratio to improve to below 40% by 2028.

  • The transaction is expected to close in the second half of 2026.
  • The combined U.S. balance sheet figures are based on data as of December 31, 2025.

The players

Banco Santander, S.A.

A multinational Spanish banking and financial services company headquartered in Spain.

Webster Financial Corporation

The holding company for Webster Bank, N.A., a diversified U.S. retail and commercial bank headquartered in Stamford, Connecticut.

Christiana Riley

CEO of Santander US and CEO of Santander Holdings USA.

John Ciulla

Chairman, President and CEO of Webster, who will become the CEO of Santander Bank NA after the integration.

Luis Massiani

Webster's President and Chief Operating Officer, who will become the COO of both Santander Holdings USA and Santander Bank NA with responsibility for leading the integration.

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What they’re saying

“This is an exciting step forward for Santander, as it creates a stronger bank for our customers and the communities we serve. Webster is one of the most efficient and profitable banks among its peers, and brings together two highly complementary franchises and will expand the products, technology and capabilities we can deliver with clear revenue opportunities from a stronger, more capable combined franchise.”

— Ana Botin, Banco Santander executive chair (marketscreener.com)

“This acquisition meaningfully expands our commercial franchise, resulting in a more balanced business mix and positioning us for sustainable, long-term growth. Equally important, we are bringing aboard a talented leadership team with a strong track record in building a high-quality bank, and we are excited about the value we can create together for our customers and communities.”

— Christiana Riley, CEO of Santander US (marketscreener.com)

“This is an exciting combination that brings together complementary strengths and a shared commitment to excellence. 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. I look forward to joining the Santander team and enhancing our ability to support clients across our expanded footprint.”

— John Ciulla, Chairman, President and CEO of Webster (marketscreener.com)

What’s next

The transaction is subject to customary closing conditions, including regulatory approvals and the receipt of Webster and Santander shareholder approvals, and is expected to close in the second half of 2026.

The takeaway

This acquisition represents a strategic move by Santander to significantly strengthen its U.S. franchise, creating a more balanced and efficient banking business that is well-positioned for sustainable growth and profitability in the Northeast region.