Santander Bank

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Santander Bank, N. A.
TypeSubsidiary
(Formerly Public, NYSE: SOV)
IndustryNational Banks
HeadquartersBoston, Massachusetts, USA
Key peopleRoman Blanco, Chairman and CEO
RevenueIncrease$3.345 billion USD (2013)[1]
Operating incomeDecrease$1.508 billion USD (2013)[1]
Net incomeDecrease$1.042 billion USD (2013)[1]
Employees9,525 (2013)[2]
ParentSantander Group
Websitewww.santanderbank.com
 
  (Redirected from Sovereign Bank)
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Santander Bank, N. A.
TypeSubsidiary
(Formerly Public, NYSE: SOV)
IndustryNational Banks
HeadquartersBoston, Massachusetts, USA
Key peopleRoman Blanco, Chairman and CEO
RevenueIncrease$3.345 billion USD (2013)[1]
Operating incomeDecrease$1.508 billion USD (2013)[1]
Net incomeDecrease$1.042 billion USD (2013)[1]
Employees9,525 (2013)[2]
ParentSantander Group
Websitewww.santanderbank.com

Santander Bank (formerly Sovereign Bank) is a wholly owned subsidiary of the Spanish Santander Group. Based in Boston, Massachusetts, the bank—whose principal market is in the Northeastern United States—has more than $77 billion in assets, operates 723 retail banking offices, over 2,300 ATMs (including 1,100 in CVS pharmacies throughout the Northeast) and employs approximately 9,000 people.[2] Santander 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.

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

History[edit]

Santander Bank branch footprint in the eastern United States.
Former Sovereign Bank logo
Santander Bank, Summer Street, Boston

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 2000, it bought 285 New England branches from the newly merged FleetBoston Financial.[3]

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.[4] On June 1, 2006, Sovereign Bank purchased Independence Community Bank Corp. of Brooklyn, New York, for US$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.[5]

On October 13, 2008, Banco Santander agreed to purchase the remainder of Sovereign for US$1.9 billion (1.4 billion euros).[6] Sovereign Bank was severely affected by losses related to auto loans and stock in Fannie Mae and Freddie Mac.[7] 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.[8] On January 30, 2009, Banco Santander completed its acquisition of Sovereign Bank, for about $2.51 per share.[9]

In August 2011, the bank announced its plans to formally relocate its headquarters from Wyomissing, Pennsylvania to Boston, Massachusetts where its top executives had already been located for the past few years.[10]

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.[11] The rebranding was completed on October 17, 2013.[12]

Controversy[edit]

As of March 1, 2012, Sovereign began charging a service fee on accounts maintaining a less than $750.00 balance or a minimum of $500 in monthly ongoing direct deposits. This action motivated a Change.org petition as Sovereign is a regional bank serving customers of diverse income levels.

Notes[edit]

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