Santander Bank, N. A. (), formerly Sovereign Bank, is a wholly owned subsidiary of the Spanish
Santander Group
Banco Santander, S.A., doing business as Santander Group (, , Spanish: ), is a Spanish multinational financial services company based in Madrid and Santander in Spain. Additionally, Santander maintains a presence in all global financial centre ...
. It is based in
Boston
Boston (), officially the City of Boston, is the state capital and most populous city of the Commonwealth of Massachusetts, as well as the cultural and financial center of the New England region of the United States. It is the 24th- mo ...
and its principal market is the
northeastern United States
The Northeastern United States, also referred to as the Northeast, the East Coast, or the American Northeast, is a geographic region of the United States. It is located on the Atlantic coast of North America, with Canada to its north, the Southe ...
. It has $57.5 billion in
deposits
A deposit account is a bank account maintained by a financial institution in which a customer can deposit and withdraw money. Deposit accounts can be savings accounts, Transaction account#Current accounts, current accounts or any of several othe ...
, 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
A mortgage loan or simply mortgage (), in civil law jurisdicions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any ...
,
corporate banking
Wholesale banking is the provision of services by banks to larger customers or organizations such as mortgage brokers, large corporate clients, mid-sized companies, real estate developers and investors, international trade finance businesses, ...
credit card
A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder's accrued debt (i.e., promise to the card issuer to pay them for the amounts plus the o ...
,
capital markets
A capital market is a financial market in which long-term debt (over a year) or equity-backed securities are bought and sold, in contrast to a money market where short-term debt is bought and sold. Capital markets channel the wealth of savers to ...
, trust and
wealth management
Wealth management (WM) or wealth management advisory (WMA) is an investment advisory service that provides financial management and wealth advisory services to a wide array of clients ranging from affluent to high-net-worth (HNW) and ultra-high- ...
, and
insurance
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
.
Sovereign Bank was rebranded as Santander Bank on October 17, 2013; the stadium, arena, and
performing arts center
Performing arts center/centre (see spelling differences), often abbreviated as PAC, is used to refer to:
* A multi-use performance space that is intended for use by various types of the performing arts, including dance, music and theatre.
:The ...
for which it has naming rights were also rebranded.
History
Santander Bank, N.A., was founded on October 8, 1902 as "Sovereign Bank", a
savings and loan
Wealth is the abundance of valuable financial assets or physical possessions which can be converted into a form that can be used for transactions. This includes the core meaning as held in the originating Old English word , which is from an I ...
in
Wyomissing, Pennsylvania
Wyomissing is a borough in Berks County, Pennsylvania, United States. The borough was established on July 2, 1906. As of the 2020 census, the population was 11,114, compared to 10,461 at the 2010 census. The growth was significantly larger betwe ...
. 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. In 2000, Sovereign bought 278 New England branches from the newly merged
FleetBoston Financial
FleetBoston Financial was a Boston, Massachusetts-based bank created in 1999 by the merger of Fleet Financial Group and BankBoston. In 2004 it merged with Bank of America; all of its banks and branches were converted to Bank of America.
Histor ...
, becoming the third-largest retail bank in the
Boston
Boston (), officially the City of Boston, is the state capital and most populous city of the Commonwealth of Massachusetts, as well as the cultural and financial center of the New England region of the United States. It is the 24th- mo ...
area at one stroke. This transaction was driven by a requirement from bank regulators that
Fleet Bank
FleetBoston Financial was a Boston, Massachusetts-based bank created in 1999 by the merger of Fleet Financial Group and BankBoston. In 2004 it merged with Bank of America; all of its banks and branches were converted to Bank of America.
Histor ...
and
BankBoston
BankBoston was a bank based in Boston, Massachusetts, which was created by the 1996 merger of Bank of Boston and BayBank. One of its predecessor banks started in 1784, but the merged BankBoston was short-lived, being acquired by Fleet Bank in 19 ...
divest 306 branches as a condition for merger.
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
Isabella II ( es, Isabel II; 10 October 1830 – 9 April 1904), was Queen of Spain from 29 September 1833 until 30 September 1868.
Shortly before her birth, the King Ferdinand VII of Spain issued a Pragmatic Sanction to ensure the successi ...
. 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, so 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 senior's 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.
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
Reading ( ; Pennsylvania Dutch: ''Reddin'') is a city in and the county seat of Berks County, Pennsylvania, United States. The city had a population of 95,112 as of the 2020 census and is the fourth-largest city in Pennsylvania after Philade ...
York, Pennsylvania
York ( Pennsylvania Dutch: ''Yarrick''), known as the White Rose City (after the symbol of the House of York), is the county seat of York County, Pennsylvania, United States. It is located in the south-central region of the state. The populati ...
.
In June 2006, Banco Santander purchased almost 20% of Sovereign Bank for US$2.4 billion. As Banco Santander owned 25% of Sovereign, it had the right to buy the bank for $40 per share for one year beginning in the middle of 2008. On June 1, 2006, Sovereign Bank purchased Independence Community Bank Corp. of
Brooklyn, New York
Brooklyn () is a borough of New York City, coextensive with Kings County, in the U.S. state of New York. Kings County is the most populous county in the State of New York, and the second-most densely populated county in the United States, be ...
, for
US$
The United States dollar (symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the official ...
3.6 billion in cash. Sovereign completed the transition process of Independence and S.I. Bank & Trust customers on September 9, 2006. Sovereign financed this merger through its partial sale to Spain's
Banco Santander Central Hispano
Banco Santander, S.A., doing business as Santander Group (, , Spanish: ), is a Spanish multinational financial services company based in Madrid and Santander in Spain. Additionally, Santander maintains a presence in all global financial centre ...
.
On October 13, 2008, Banco Santander purchased the remainder of Sovereign for US$1.9 billion (1.4 billion euros). Sovereign Bank was severely affected by losses related to auto loans and stock in
Fannie Mae
The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a United States government-sponsored enterprise (GSE) and, since 1968, a publicly traded company. Founded in 1938 during the Great Depression as part of the N ...
and
Freddie Mac
The Federal Home Loan Mortgage Corporation (FHLMC), commonly known as Freddie Mac, is a publicly traded, government-sponsored enterprise (GSE), headquartered in Tysons Corner, Virginia.