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Santander Bank

(Redirected from Sovereign Bank)
For the British bank with this name, see Santander UK.

Santander Bank, N. A. (/ˌsɑːntɑːnˈdɛər/) is an American bank operating as a wholly-owned subsidiary of the Spanish Santander Group. It is based in Boston and its principal market is the northeastern United States. It has $57.5 billion in deposits, operates about 650 retail banking offices and over 2,000 ATMs, and employs approximately 9,800 people. It offers an array of financial services and products, including retail banking, mortgages, corporate banking, cash management, credit card, capital markets, trust and wealth management, and insurance.

Santander Bank, N. A.
FormerlySovereign Bank
Company typeSubsidiary
IndustryBanking
Founded1902; 122 years ago (1902) in Wyomissing, Pennsylvania (as Sovereign Bank)
Headquarters75 State Street,
Boston, Massachusetts
,
United States
Key people
Timothy Wennes (CEO)
Tim Ryan (Chair)
RevenueIncrease US$3.345 billion (2013)[1]
Decrease US$1.508 billion (2013)[1]
Decrease US$1.042 billion (2013)[1]
Number of employees
Increase 10,000 (2020) [2][3][4]
ParentSantander Group
Websitesantanderbank.com
Santander Bank in New York near Grand Central Station

Sovereign Bank was rebranded as Santander Bank on 17 October 2013; the stadium, arena, and performing arts center for which it has naming rights were also rebranded.

History

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Santander Bank branch footprint in the eastern United States
 
Santander Bank, Summer Street, Boston, United States
See also: Banco Santander § History

Santander Bank, N.A., was founded on October 8, 1902 as Sovereign Bank, a savings and loan in Wyomissing, Pennsylvania. The company's earliest customers were largely textile workers. Sovereign expanded rapidly during the savings and loan crisis of the 1980s and 1990s, acquiring numerous other banks.[5] In 2000, Sovereign bought 278 New England branches from the newly merged FleetBoston Financial, becoming the third-largest retail bank in the Boston area.[6][7] This transaction was driven by a requirement from bank regulators that Fleet Bank and BankBoston divest 306 branches as a condition for merger.[8]

Forty-five years before the founding of Sovereign Bank, its future parent was founded as Banco Santander on 15 May 1857, with the approval of Queen Isabel II of Spain.[9] The bank grew and in the 1920s started to build a network of branches. In 1942 it opened in Madrid. In 1934 Emilio Botín Sanz de Sautuola y López became director, and in 1950, chairman. He expanded the bank throughout Spain, and in 1957 it was Spain's seventh-largest bank. In 1976 it acquired First National Bank of Puerto Rico, and in 1982 Banco Español-Chile. In 1986, Emilio's oldest son, Emilio Botin-Sanz de Sautuola y García de los Ríos, succeeded him. In the late 1980s he acquired CC-Bank in Germany and a stake was in Banco de Comercio e Industria in Portugal. In 1989, the "Supercuenta Santander" was launched.[10]

Sovereign bought the naming rights to Mercer County's new arena in 1999 in support of newly acquired Trenton Savings Bank (formerly TSFS) and other New Jersey branches for a ten-year term. In following years, the bank also named the Sovereign Center arena and Sovereign Performing Arts Center in Reading, Pennsylvania, and Sovereign Bank Stadium in York, Pennsylvania.

In June 2006, Banco Santander purchased almost 20% of Sovereign Bank for $2.4 billion. As Banco Santander owned 25% of Sovereign, it had the right to buy the bank for $40 per share for one year beginning in the middle of 2008.[11] On 1 June 2006, Sovereign Bank purchased Independence Community Bank Corp. of Brooklyn, New York, for $3.6 billion in cash.[12] Sovereign completed the transition process of Independence and S.I. Bank & Trust customers on 9 September 2006. Sovereign financed this merger through its partial sale to Spain's Banco Santander Central Hispano.[13]

On 13 October 2008, Banco Santander purchased the remainder of Sovereign for $1.9 billion.[14] Sovereign Bank was severely affected by losses related to auto loans and stock in Fannie Mae and Freddie Mac.[15] Banco Santander had previously seen a loss of over $1 billion on its investment in Sovereign, when the latter's share price tumbled after being downgraded by Moody's in September 2008.[16] On 30 January 2009, Banco Santander completed its acquisition of Sovereign Bank, for about $2.51 per share.[17]

In August 2011, the bank announced its plans to formally relocate its U.S. headquarters from Wyomissing, Pennsylvania, to Boston, where its top executives had already been located for several years.[18]

In late September 2011, the bank announced that it would officially change its name to "Santander" as part of its parent company's goal to create a global brand.[19] The rebranding was completed on 17 October 2013.[20]

In March 2015, Scott Powell was appointed head of U.S. business at Santander, and CEO of Santander Holdings USA, replacing Roman Blanco.[21] Powell left his role as CEO in December 2019. He was replaced by Timothy Wennes.[22]

References

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  1. ^ a b c "3Q Results 2013: Sovereign Bank". Santander Group. Archived from the original on 29 October 2013. Retrieved 13 September 2024.
  2. ^ "About Us". Santander Bank. Retrieved 13 September 2024.
  3. ^ "Santander US". Santander Bank.
  4. ^ "About Us". Santander Bank N. A. Retrieved 6 August 2017.
  5. ^ Sidel, Robin (21 April 2008). "Smaller Banks Begin to Pay Price For Their Boomtime". The Wall Street Journal. Retrieved 27 September 2014.
  6. ^ "Sovereign Bank Seals Deal With Fleetboston". The Philadelphia Inquirer. 1 March 2000. Archived from the original on 15 September 2012. Retrieved 9 January 2017.
  7. ^ "Sovereign Bancorp announces deal to acquire Fleet and BankBoston branches". The Standard-Times. New Bedford, Mass. Associated Press. 8 September 1999. Retrieved 13 September 2024.
  8. ^ "Justice department requires Fleet Financial and BankBoston to divest 306 branches in four new England states" (Press release). Department of Justice. September 2, 1999. Retrieved 3 January 2017.
  9. ^ "More than a century of history". Banco Santander S.A. Retrieved 27 June 2014.
  10. ^ "1985–1990". Banco Santander. Retrieved 27 June 2014.
  11. ^ "Santander to pay $2.4B for Sovereign stake". NBC News. Associated Press. 25 October 2005. Retrieved 13 September 2024.
  12. ^ "Sovereign Bancorp to Acquire Independence". Los Angeles Times. Reuters. 25 October 2005. Retrieved 13 September 2024.
  13. ^ "What's New". Sovereign Bank. Archived from the original on 19 August 2006. Retrieved 13 September 2024.
  14. ^ "Spanish bank to buy Sovereign - $1.9B". CNN. 16 October 2008. Retrieved 13 September 2024.
  15. ^ Dash, Eric (13 October 2008). "Spanish Bank Said to Be Close to Buying Sovereign Bancorp". The New York Times. Retrieved 23 May 2010.
  16. ^ "Moody's downgrades Sovereign Bancorp to 'Baa2' from 'Baa1'". InformedTrades. 30 September 2008. Archived from the original on 17 August 2013. Retrieved 4 March 2014.
  17. ^ "Santander: Banking, Savings, Loans and Mortgages". SovereignBank (in Spanish). Archived from the original on 27 September 2009. Retrieved 4 March 2014.
  18. ^ Wallack, Todd (16 August 2011). "Sovereign making Hub its home base". The Boston Globe. Archived from the original on 25 May 2012. Retrieved 9 January 2017.
  19. ^ Wallack, Todd (28 September 2011). "Sovereign changes its name to Santander". The Boston Globe. Retrieved 28 September 2011.
  20. ^ "Sovereign Bank to Change its name to Santander" (PDF) (Press release). Santander Bank. 24 July 2013. Retrieved 13 September 2024.
  21. ^ Ryan, Greg (3 March 2015). "Santander's U.S. arm makes 2nd change at top in 2 years". Boston Business Journal. Retrieved 13 September 2024.
  22. ^ Ryan, Greg (2 December 2019). "Santander CEO leaves for high-ranking role at Wells Fargo". Boston Business Journal. Retrieved 12 October 2019.
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