Santander’s Major Acquisition in Connecticut
Santander Bank has finalized its $12.3 billion acquisition of Webster Financial Corp., marking a significant expansion in Connecticut and the Northeast. This move comes after years of trimming its branch network in the state.
Over the last decade, Santander has reduced its branches in Connecticut from 30 in 2015 to just 13 as of June 30, 2025. Despite this cutback, deposits have remained fairly steady at around $1.9 billion, according to the Federal Deposit Insurance Corporation.
The bank started closing branches in 2021, shuttering four of its 21 stores in the state, which they attributed to evolving customer banking preferences.
In sharp contrast, Webster Financial boasts about 95 branches in Connecticut, amassing deposits of around $40.4 billion by June 30, 2025. Only M&T Bank surpasses this with its 116 locations, based on FDIC data.
Combining their efforts, Santander and Webster together account for roughly $42.3 billion in deposits in Connecticut—more than Bank of America, according to the latest figures.
Someone knowledgeable about the deal mentioned to the Hartford Business Journal that acquiring Webster would fill gaps in Santander’s presence in the Northeast. While Santander already has a strong foothold in areas like metropolitan Boston and New York, its Connecticut network has diminished notably over the years.
The deal will also shift the focus of Santander’s U.S. lending. Around 80% of Webster’s loan portfolio caters to commercial clients, a stark contrast to Santander’s consumer-oriented lending, which includes a lot of auto financing. Additionally, Webster brings along a robust healthcare financing sector and a solid commercial banking framework.
Details regarding branding and branch strategies still seem uncertain. The companies haven’t committed to retaining the Webster name or discussed any potential branch consolidations.
Though sources indicated that the acquisition could lead to some efficiency improvements, there was no clarity on whether layoffs might be part of this transition.
Santander’s U.S. operations began with its acquisition of Sovereign Bank in 2009, and it officially completed the rebranding to Banco Santander in October 2013. This acquisition represents the first instance of the Santander name functioning as a federally chartered bank in the U.S.
Under the new agreement, Webster Financial Corporation will operate as a wholly owned subsidiary of Banco Santander, pending regulatory and shareholder approvals. The closure is anticipated in the second half of 2026.
Webster CEO John R. Ciulla is set to lead Banco Santander NA, with senior executives from Webster remaining in Stamford, which will be the primary U.S. headquarters moving forward.
Santander currently employs about 11,000 people across the country and has around $250 billion in assets.
