After years of reducing branches in Connecticut, Banco Santander’s $12.3 billion deal to acquire Webster Financial Corp. would give it one of the largest footprints in the state and the broader Northeast.
Federal Deposit Insurance Corp. data shows Santander has cut its Connecticut branch network by more than half over the past decade, operating 30 branches in 2015 compared with 13 as of June 30, 2025, while its in-state deposits remained relatively steady at about $1.9 billion.
That contraction included a round of branch closures in 2021, when the bank said it would close four of its 21 Connecticut locations, citing shifts in customer banking behavior.
Webster, by contrast, reported about $40.4 billion in Connecticut deposits as of June 30, 2025, across 95 branches statewide. Only M&T Bank had more branches in the state, with 116, according to FDIC data.
Combined, Santander and Webster would hold roughly $42.3 billion in Connecticut deposits, surpassing Bank of America in total in-state deposits based on the latest figures.
A person familiar with the deal told the Hartford Business Journal that Webster’s franchise helps address a gap in Santander’s Northeast footprint. While Santander maintains a significant presence in greater Boston, metro New York and New Jersey, its Connecticut network has thinned considerably over the past decade.
The deal, according to the source, would also shift the balance of Santander’s U.S. lending mix. Roughly 80% of Webster’s loan portfolio is tied to commercial borrowers, nearly the inverse of Santander’s book, which has leaned more heavily on consumer lending, including auto finance. Webster also brings a specialized healthcare financing business and an established commercial banking platform.
Branding and branch decisions remain unresolved, the source told HBJ. The companies have not said whether the Webster name will be retained, and no determinations have been made about potential branch consolidations.
The person familiar with the deal said some operational efficiencies are expected but declined to say whether staff reductions would result.
Santander’s U.S. presence traces back to its 2009 acquisition of Sovereign Bank, which officially changed its name to Santander Bank in October 2013. The rebranding marked the first time the Santander name operated as a U.S. federally chartered bank.
Under the agreement, Webster Financial Corp. would operate as a wholly owned subsidiary of Banco Santander following a closing expected in the second half of 2026, subject to regulatory and shareholder approvals.
Webster CEO John R. Ciulla is slated to lead Santander Bank N.A., and senior Webster executives are expected to remain based in Stamford, which the companies have said will serve as a key U.S. corporate location.
Nationally, Santander employs about 11,000 and holds roughly $250 billion in assets.
