Banco Santander has received approval from the Board of Governors of the Federal Reserve System to acquire Webster Financial Corporation, the holding company for Webster Bank, N.A. The clearance is the regulatory hurdle for the transaction, which is expected to close on 20 August 2026. The Fed’s approval follows consent from the Office of the Comptroller of the Currency on 12 June 2026 and authorisation from the European Central Bank on 21 July 2026.
Webster Bank, headquartered in Stamford, Connecticut, had more than $80 billion in total assets when the acquisition was announced. It operates across Commercial Banking, Healthcare Financial Services, and Consumer Banking, with a core footprint spanning the Northeast from the New York metropolitan area to Rhode Island and Massachusetts. Most of Webster’s operations will be folded into Santander Bank, N.A., Santander’s existing US banking franchise. Santander executive chair Ana Botín said the combination would strengthen the group’s position in the US market and support the creation of a higher-performing bank among its US peers.
By 2028, Santander expects the combined entity to achieve a return on tangible equity of around 18%. The transaction is also expected to generate approximately 7 to 8 per cent earnings per share accretion and an estimated 15 per cent return on invested capital. These are alternative performance measures as defined by ESMA and are not audited figures. Santander said the acquisition supports its long-running effort to build a US retail and commercial banking franchise.
Webster’s Healthcare Financial Services division provides specialised lending to healthcare providers and health savings accounts, making it a notable differentiator. Retaining that client base through integration will be an important near-term test for the combined organisation. Cross-border bank M&A in the US has faced heightened scrutiny, with regulators focusing on integration risk, compliance frameworks and Community Reinvestment Act obligations. Customers have been told that accounts and services will continue without interruption until any changes are communicated ahead of implementation.