Santander Bank#History
{{short description|Wholly owned subsidiary of Spanish Santander Group}}
{{For|the British bank with this name|Santander UK}}
{{Use dmy dates|date=July 2022}}
{{Infobox company
| name = Santander Bank, N. A.
| logo = Banco Santander Logotipo.svg
| logo_size = 280px
| image = 75 State Street.jpg
| image_caption = Headquarters in Boston
| former_name = Sovereign Bank
| type = Subsidiary
| industry = Banking
| foundation = {{Start date and age|1902}} in Wyomissing, Pennsylvania (as Sovereign Bank)
| key_people = Christiana Reilly (CEO)
Tim Ryan (Chair)
| products =
| operating_income = {{loss}} US$1.508 billion (2013)
| net_income = {{loss}} US$1.042 billion (2013)
| num_employees = {{increase}} 10,000 (2020)
{{cite web |url=https://www.santanderus.com/about-us/ |title=About Us |website=Santander Bank |access-date=13 September 2024}}{{cite web| title=Santander US| url=https://www.santanderus.com/| website=Santander Bank}}{{cite web |url=https://www.santanderbank.com/us/about/about-us |title=About Us |website=Santander Bank N. A. |access-date=6 August 2017}}
| parent = Santander Group
| slogan =
| location = 75 State Street
| hq_location_city = Boston, Massachusetts
| hq_location_country = United States
| homepage = {{url|santanderbank.com}}
}}
Santander Bank, N. A. ({{IPAc-en|ˌ|s|ɑ:|n|t|ɑ:|n|ˈ|d|ɛər}}) 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.
File:Santander in New York.jpg
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
File:Santander Bank footprint.png
File:Santander-Summer-Street-Boston.jpg
{{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.{{cite news |last1=Sidel |first1=Robin |title=Smaller Banks Begin to Pay Price For Their Boomtime |url=https://online.wsj.com/articles/SB120873974430930109 |access-date=27 September 2014 |newspaper=The Wall Street Journal |date=21 April 2008 |url-access=subscription}} In 2000, Sovereign bought 278 New England branches from the newly merged FleetBoston Financial, becoming the third-largest retail bank in the Boston area.{{cite news |date=1 March 2000 |title=Sovereign Bank Seals Deal With Fleetboston |url=http://articles.philly.com/2000-03-01/business/25604450_1_jay-s-sidhu-sovereign-bank-branch-network |archive-url=https://web.archive.org/web/20120915122532/http://articles.philly.com/2000-03-01/business/25604450_1_jay-s-sidhu-sovereign-bank-branch-network |url-status=dead |archive-date=15 September 2012 |newspaper=The Philadelphia Inquirer |access-date=9 January 2017 |url-access=registration}}{{cite news |title=Sovereign Bancorp announces deal to acquire Fleet and BankBoston branches |url=https://www.southcoasttoday.com/story/business/1999/09/08/sovereign-bancorp-announces-deal-to/50513306007/ |agency=Associated Press |location=New Bedford, Mass |newspaper=The Standard-Times |date=8 September 1999 |access-date=13 September 2024}} This transaction was driven by a requirement from bank regulators that Fleet Bank and BankBoston divest 306 branches as a condition for merger.{{cite press release |author= |title=Justice department requires Fleet Financial and BankBoston to divest 306 branches in four new England states |url=https://www.justice.gov/archive/atr/public/press_releases/1999/3027.htm |publisher=Department of Justice |date=2 September 1999 |access-date=3 January 2017 |df=mdy}}
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.{{cite web |title=More than a century of history |url=http://www.santander.com/csgs/Satellite/CFWCSancomQP01/en_GB/Santander/More-than-a-century-of-history.html |website=Banco Santander S.A. |access-date=27 June 2014}} 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.{{cite web |title=1985–1990 |url=http://www.santander.com/csgs/Satellite/CFWCSancomQP01/en_GB/Corporate/1985-1990.html |website=Banco Santander |access-date=27 June 2014}}
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.{{cite news |title=Santander to pay $2.4B for Sovereign stake |url=https://www.nbcnews.com/id/wbna9812207 |website=NBC News |date=25 October 2005 |agency=Associated Press |access-date=13 September 2024}} On 1 June 2006, Sovereign Bank purchased Independence Community Bank Corp. of Brooklyn, New York, for $3.6 billion in cash.{{cite news |agency=Reuters |title=Sovereign Bancorp to Acquire Independence |url=https://www.latimes.com/archives/la-xpm-2005-oct-25-fi-rup25.6-story.html |newspaper=Los Angeles Times |url-access=subscription |date=25 October 2005 |access-date=13 September 2024}} 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.{{cite web |title=What's New |url=http://www.myindependence.com/IntegrationCalendar/ |website=Sovereign Bank |archive-url=https://web.archive.org/web/20060819010303/http://www.myindependence.com/IntegrationCalendar/ |access-date=13 September 2024|archive-date=19 August 2006 }}
On 13 October 2008, Banco Santander purchased the remainder of Sovereign for $1.9 billion.{{cite news
|url=https://money.cnn.com/2008/10/13/news/companies/sovereign_deal/index.htm |title=Spanish bank to buy Sovereign - $1.9B |website=CNN |date=16 October 2008 |access-date=13 September 2024}} Sovereign Bank was severely affected by losses related to auto loans and stock in Fannie Mae and Freddie Mac.{{cite news| url=https://www.nytimes.com/2008/10/13/business/13bank.html?ref=business | newspaper=The New York Times | title=Spanish Bank Said to Be Close to Buying Sovereign Bancorp | first1=Eric | last1=Dash | date=13 October 2008 | access-date=2010-05-23 |url-access=subscription}} 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.{{cite web |url=http://www.informedtrades.com/129292-moodys-downgrades-sovereign-bancorp-baa2-baa1.html |archive-url=https://archive.today/20130817073146/http://www.informedtrades.com/129292-moodys-downgrades-sovereign-bancorp-baa2-baa1.html |url-status=dead |archive-date=17 August 2013 |title=Moody's downgrades Sovereign Bancorp to 'Baa2' from 'Baa1' |website=InformedTrades |date=30 September 2008 |access-date=4 March 2014}} On 30 January 2009, Banco Santander completed its acquisition of Sovereign Bank, for about $2.51 per share.{{cite web |url=http://www.sovereignbank.com/companyinfo/investor_relations/news/company_news.asp?ID=932 |archive-url=https://web.archive.org/web/20090927001226/http://www.sovereignbank.com/companyinfo/investor_relations/news/company_news.asp?ID=932 |url-status=dead |archive-date=27 September 2009 |title=Santander: Banking, Savings, Loans and Mortgages |language=es |website=SovereignBank |access-date=4 March 2014}}
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.{{cite news |last=Wallack |first=Todd |date=16 August 2011 |url=http://articles.boston.com/2011-08-16/business/29893051_1_sovereign-spokesman-sovereign-bank-deposits-and-branches |newspaper=The Boston Globe |archive-url=https://web.archive.org/web/20120525085431/http://articles.boston.com/2011-08-16/business/29893051_1_sovereign-spokesman-sovereign-bank-deposits-and-branches |archive-date=25 May 2012| title=Sovereign making Hub its home base |access-date=9 January 2017}}
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.{{cite news| url=http://www.boston.com/business/articles/2011/09/28/sovereign_changes_its_name_to_santander/| newspaper=The Boston Globe| title=Sovereign changes its name to Santander| first1=Todd| last1=Wallack| date=28 September 2011| access-date=28 September 2011}} The rebranding was completed on 17 October 2013.{{cite press release |url=https://www.santander.com/content/dam/santander-com/en/documentos/historico-de-actualidad/2013/NO-2013-07-24-Sovereign%20Bank%20to%20change%20its%20name%20to%20Santander-en.pdf |title=Sovereign Bank to Change its name to Santander |date=24 July 2013 |publisher=Santander Bank |access-date=13 September 2024}}
In March 2015, Scott Powell was appointed head of U.S. business at Santander, and CEO of Santander Holdings USA, replacing Roman Blanco.{{cite news |url=https://www.bizjournals.com/boston/news/2015/03/03/santanders-u-s-arm-makes-2nd-change-at-top-in-2.html |title=Santander's U.S. arm makes 2nd change at top in 2 years |first=Greg |last=Ryan |date=3 March 2015 |newspaper=Boston Business Journal |access-date=13 September 2024 |url-access=subscription}} Powell left his role as CEO in December 2019. He was replaced by Timothy Wennes.{{cite news |url=https://www.bizjournals.com/boston/news/2019/12/02/santander-ceo-leaves-for-high-ranking-role-at.html|title=Santander CEO leaves for high-ranking role at Wells Fargo |first=Greg |last=Ryan |date=2 December 2019 |newspaper=Boston Business Journal |access-date=12 October 2019 |url-access=subscription}}
In May 2024, Santander Bank notified its customers of unauthorized access to Snowflake, a third-party database system. Santander's statement stated that hackers successfully accessed data of 30 million customers of Santander Chile, Spain and Uruguay, as well as all current and some former Santander employees.{{Cite web |title=All Santander staff and millions of customers have data hacked |url=https://www.bbc.com/news/articles/c6ppv06e3n8o |access-date=2025-01-15 |website=www.bbc.com |date=2 June 2024 |language=en-GB}}
In February 2025, Christiana Riley was announced to be succeeding Tim Wennes as CEO of Santander US. This action comes as part of a broader restructuration of the bank, which includes eliminating regional divisions and shifting to five global units. Riley, who had joined Santander in 2023, will now be leading the U.S. operations as the bank expands in areas like corporate banking and digital banking. The restructuring will also see changes in other markets, including a new CEO for Banco Santander Chile.{{Cite news |date=February 1, 2025 |title=Santander names Riley as CEO of Santander US, part of wider reshuffle |url=https://www.reuters.com/business/finance/santander-names-riley-ceo-santander-us-part-wider-reshuffle-2025-01-31/}}
References
{{reflist}}
External links
{{Portal|Banks}}
{{commons category|Santander Bank, N. A.}}
- [http://www.santanderbank.com Official website]
Category:American companies established in 1902
Category:Banks established in 1902
Category:Banks based in Massachusetts